Rushil Decor Updates On New Manufacturing Facility In Andhra Pradesh
Rushil Decor Limited updates about the establishment of Thin & Thick MDF Board Manufacturing Facility at Atchutapuram District Vishakhapatnam having capacity of 800 CBM per day.
The status of the said new project is as under:
1. Land: Company has already acquired the desired land at Atchutapuram Dist. Vishakhapatnam, State Andhra Pradesh.
2. Building: Contract for construction of building is executed and construction is already started on the acquired land.
3. Plant & Machinery: Company has already placed an order for acquisition of main MDF manufacturing line with Siempelkamp Maschinen- und Anlagenbau GmbH, a German-based supplier and also made an agreed advance payment to the supplier.
4. Other Work: Company has also executed necessary contracts / placed work orders for other work related to fabrication, erection, electricity, energy plant, sub-station, transformer etc. Company made the advance payment to suppliers/service providers as agreed with them.
5. Financial Arrangement: A financial arrangement is made by the Company to finance the project as under:
a) An arrangement is made with German based banks to provide supplier credit in the form of ECA credit facility for payment of MDF Board Line purchased from a German based supplier. An agreement is executed with banks for the said facility.
b) An arrangement is also made for ECB Facility for other capital expenditure with bank. Company has received the sanction letter from the bank for the said ECB facility.
c) Company has also raised Rs. 40 crores in the form of Equity by way of Private Placement for the project.
Commercial production of the MDF Board may start from the month of April, 2020. On starting the production of MDF Board at Atchutapuram plant, the capacity of the Company may increase from existing 300 CBM per day to 1100 CBM per day.