The Kerala-based Rubfila International, the only manufacturer of silicon-coated rubber threads in India, is eyeing a business turnover of Rs 350 crore by 2016.
To achieve the target, the Rs 105-crore company has lined up several plans which include increasing the production capacity from the present 10,000 tonnes to 25,000 tonnes, diversifying into latex-related products and a phased expansion in Pollachi, where the company has acquired 12 acres of land.
Bharath J. Patel, Chairman, who was in Palakkad for the annual general meeting, told Business Line an investment of Rs 15 crore was envisaged for expansion. Of this Rs 9.5 crore had been invested at its present manufacturing facility in Kanjikode to increase the capacity from 6,350 tonnes to 10,000 tonnes.
With the focus on both exports as well as the domestic market, the next phase of expansion to 13,000 tonnes capacity would be completed by the end of the current fiscal. The cost of expansion would be funded from internal accruals, he said.
Rubfila produces rubber threads for various applications such as apparel, food packing, furniture, webbing, bungee jumping, medical netting and catheters. The production facility is designed for both talc and rubber-coated thread.
The company, set up in 1993, was referred to the BIFR in 2007 when its total net worth had eroded. However, a new group of investors, who had taken over the company in 2005, brought in additional investments.
The restructuring done during the past few years has started yielding results with the turnover touching Rs 105.95 crore in the 2013 fiscal against a meagre Rs 25.42 crore in 2008.
The company was delisted from the BIFR in August 2012.
In the last fiscal ending March 31, Rubfila registered a net profit of Rs 13.30 crore against Rs 9.93 crore achieved in the previous fiscal