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The Kerala-based Rubfila International Ltd plans to expand its capacity by another 2,500 tonnes a year during the current year with an eye on the export market.
The annual production capacity at present is 6,350 tonnes.
Rubfila, located in the New Industrial Development Area at Kanjikode in Palakkad, is the only manufacturer of silicon coated rubber threads in the country. The production facility is also designed to produce talc coated rubber thread (TCR).
Mr G. Krishnakumar, managing director, Rubfila International Ltd, said the expansion programme would be funded from internal accruals. During the FY 12, the company achieved a 23 per cent increase in its turnover at Rs 101.83 crore against Rs 82.47 crore in FY 2011.
The net profit also registered a quantum jump at Rs 9.93 crore as against Rs 2.15 crore for the previous year. The company hopes to maintain the growth in the top line and bottom line in the coming year and is targeting a turnover of Rs 250 crore in the next two years, he said.
The market leader in rubber threads and also a leading exporter of the product, Rubfila produces rubber threads for various applications such as apparel, food packing, furniture webbing, bungee jumping, toys, medical netting, diapers, catheters etc.
With the capacity slated to touch 8,850 tonnes in the next 8-9 months, he said, the company will cater to the markets of South America, Bangladesh, Sri Lanka, Italy and Japan. At present, 6 per cent of the turnover comes from exports which are likely to go up after capacity expansion.
The company, which has purchased 12 acres of land in Pollachi for its future expansion plans, is looking at manufacturing latex related products too, he said.
Rubfila, set up by Rubpro Sdn. Bhd of Malaysia and Kerala State Industrial Development Corporation in 1993, came out of the red in March 2010.
The company is in the process of getting delisted from BIFR, Mr Krishna Kumar said, adding that it would take 2-3 months to complete the process.
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