“Due to COVID-19 situation, we put our capex plan on hold for setting up our third manufacturing plant… Entire new plant project cost is Rs 100 crore… Early next year, construction will start for setting up the plant. We will do it in phases. It is a huge facility,” Sunil Agarwal, chairman of RSH Global, told PTI.
At present, RSH Global has two manufacturing plants in Baddi in Himachal Pradesh.
The Kolkata-based personal care company, which mainly operates in the skin and hair care segment through its brands Joy, X-Men and Karis, is eyeing up to 20 per cent increase in sales in the current fiscal.
Agarwal said in the first half of financial year 2020-21, the company could only do 25 per cent of the business compared to the same period of previous year due to COVID-19 related disruptions.
“Demand jumped from October onwards. In the second half of the fiscal, we reported record growth and made up for all the losses. We reported 5 per cent sales growth for the full year,” he added.
Agarwal said going forward, he does not expect any dip in consumer demand, despite increase in COVID-19 cases but expects some disruptions to happen in supply chain and distribution.
“We are looking at 15-20 per cent growth in sales in the current financial year given the current situation with regards to COVID-19,” he added.
The company has reported sales of Rs 540 crore in FY2020-21. Its sales were recorded at Rs 490 crore in FY2019-20.
RSH Global said the company plans to launch 15 new products in the next two months to expand its product portfolio range.