New Delhi: Carpet tiles-maker InterfaceFLOR India, a step-down subsidiary of Nasdaq-listed InterfaceFLOR, on Friday said it is mulling the establishment of a manufacturing facility in India at an estimated investment of around $40 million.
“We are at an early stage of discussion to put up a base for manufacturing in India. Our parent will take the final call, which might be one-two years away from now,” InterfaceFLOR India country manager Raj Menon told the news agency.
Menon said the plant would not only cater to India, which has a Rs 300 crore market now and is growing by up to 25% every year, but markets in the Middle East and Africa as well, as demand for carpet tiles is on the rise.
The plant, he said, might come up somewhere in the western or southern part of India because of their proximity to ports, which will facilitate the import of raw material and export of finished products.
Menon, however, said the company was yet to approach the state governments for land for the proposed plant, for which around an investment of around $40 million is required.
InterfaceFLOR came to India in 2001 and since then, it has sold more than 35 lakh square metres of carpet tiles to over 300 major customers through business-to-business (B2B) sales and dealerships across the country.
The parent company has seven manufacturing plants across the globe. The products sold in the Indian market are completely sourced from its Thailand facility at present.
InterfaceFLOR India is a fully-owned subsidiary of InterfaceFLOR Europe, which is a subsidiary of the NASDAQ-listed parent firm.
Recording a 20-25% compounded annual growth rate in sales, InterfaceFlor India’s turnover touched Rs 70 crore in 2010, Menon said, adding that by the end of the current year, the top line should cross Rs 90 crore.
There are companies from the US, Europe and Far East in the carpet tile business in India. However, not a single domestic firm is present in the segment, Menon said, adding that he was also not aware of any Indian firm getting into the area in the short-term.
“The growing economy, affordability and aspiration level will keep on improving the Indian carpet tiles market,” Menon said.