Nilkamal — Aims To Scale Up Non-Plastic Furniture Vigorously: Anand Rathi

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Anand Rathi Report

Nilkamal Ltd.'s management expects 11-15% overall volume growth in FY23. It aims to double revenue in the next five-six years, with 12-15% margins.

The demand environment seems encouraging. Price hikes in material handling would continue as earlier higher input costs were not fully passed on. In the furniture business, however, earlier price hikes have been adequate.

Volatility in key raw materials such as polyethylene and polypropylene continues. However, prices, which were softer in July/August, started firming up in September. Management expects a favorable pricing scenario from Q4 FY23.

Plastic furniture has a small market size, while in non-plastic furniture the opportunity size is significant. Hence, after the Boston Consulting group report on the furniture business revamp, Nilkamal is striving to scale up the non-plastic furniture business.

Capex at Hosur for non-plastic furniture is progressing. On the land acquisition being completed by December, the facility is expected to be operational within six-nine months, i.e., Q1/Q2 FY24.

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