Responsive Industries, one of the largest vinyl flooring and cloth rexine manufacturing company, plans to invest about $100 million ( Rs. 670 crore) in setting up a vinyl floor manufacturing unit abroad to serve the US and European market.
The almost zero-debt company, which is scouting for suitable location in West Asia, Europe and the US, plans to raise 50 per cent for the project through a new subsidiary to be floated abroad and use internal accrual for the rest. The vinyl manufacturing plant will have capacity to 6,000 tonnes per month of high-end vinyl flooring for the export market.
Rishabh Agarwal, Managing Director, said that the company will have enough room for expansion as it will repay the last two installment of $86 million ECB loan by September.
Given the low-cost of production and competitive market advantage, it may zero-in on a location in the UAE, said sources. The company sees fresh opportunity in low-cost housing projects promoted with government support.
“We have vinyl flooring starting from Rs. 40 per sq ft to Rs. 150 sq ft that can serve low-cost housing projects and the flooring can withstand for at least 20 years. A flooring of 5,000 sq ft can be laid with a labour of five people in a day," said Agarwal.