Relaxo Footwear Commenced Commercial Production At Its New Plant In Rajasthan
Relaxo Footwears Limited (RFL) announces the commencement of commercial production at its New State of Art Plant at Bhiwadi. Detailed information is annexed below:
|S.No.||Basis of points||Clarification|
|1||Rationale||Relaxo Footwears Limited (RFL) had an existing capacity of 3.25 lacs per day for manufacturing flip-flops (Hawaii range of footwear). To derive benefits of synergies and to meet peak season demand, RFL has added Hawaii manufacturing facility in Bhiwadi and in that direction, this plant has been set up with an initial capacity of 1 25 Lacs Pairs Per Day flip-flops (Hawaii range of footwear) which Is close to existing plant.|
|2||Mode of financing||RFL has majorly funded the Construction and setting up of Machinery through Internal accruals. It had also availed a term loan of Rs. 60.00 Crores in 2015, for Capital Expenditure.|
|3||Investment required||RFL has spent -159.00 Crores on the installation of the new Plant.|
|4||Period within which the proposed capacity is to be added||Proposed capacity has already added to the above-mentioned capacity|
|5||Existing capacity utilization & Existing capacity |
RFL had the capacity of 3.25 Lacs Pairs Per Day of fllp flops (Hawaii range of footwear) in existing plants, In the last FY18, RFL produced - 75% capacity utilization which goes up to approx. 90% in the peak season.
Considering the future growth and potential in this category, this new plant has been set up with an additional capacity of 1 25 Lacs to cater future demand.