Wood and furniture manufacturer Shirdi Industries Ltd will invest Rs 110 crore on capacity expansion of its MDF board and laminates plant in Rudrapur, Uttaranchal, in 2013-14 to expand capacities, a senior official said on Wednesday.
The company, which also has facilities in Coimbatore, Tamil Nadu, and Bhivandi, Maharashtra, currently has daily capacity to produce 200 cubic metres of MDF board and 220 cubic metres of particle board.
Shirdi Industries is yet to decide on the post-expansion capacity it would have, said Gaurav Agarwal, Vice President and Director, Marketing, here.
The company is projecting to increase its turnover in 2012-13 to about Rs 540 crore from Rs 410 crore in 2011-12, he said.
Shirdi Industries will also focus on consumer education and awareness.
He welcomed the FDI of two billion euros (Rs 10,500 crore) by global giant IKEA, saying it would bring global competition, consolidation and professionalism in Indian furniture industry.
IKEA would procure at least 30 per cent of its wood requirements domestically, he said.
Agarwal said this competition is expected to encourage Indian furniture brands as well. Growth of urbanization, migration, real estate and mobility are seen as factors that would encourage demand for readymade furniture, he added.