Our topline & bottomline will grow 100% in FY07: Indo Asian

Generally we are expecting a 100% growth in business both in topline and bottomline because the expansion has been very fast. Our own growth has been very substantial, especially our expansion in the overseas market enabling us to export very substantially, V P Mahendru, managing director of Indo Asian Fusegear told Moneycontrol.

The company is rapidly setting its footprints in the Middle East, the UK and the SAARC countries, he said. Whereas they are 20% joint venture technology partner in a Saudi company, their regional office in Dubai will take care of their exports business in this region.

The Rs 155 crore, lighting and switchgear making company is very ambitious as far as its growth in the next four years is concerned. It plans to grow almost six times is four years and expects the company turnover at around Rs 1000 crore by 2010.

"I think within 4 years we should be crossing Rs 1000 crore," Mr. Mahendru told Moneycontrol. For the quarter ended March 2006, the company reported net profit of Rs 4 crore on a turnover of Rs 44.64 crore.

Moneycontrol's exclusive intreview with V P Mahendru, Managing Director, Indo Asian Fusegear:

Q:  Most of your manufacturing units are in northern India. What's the reason behind this geographical concentration in one region?

A: I think it's more historical than any specific reasons. We started from Jalandhar many years back and then have been expanding in Haryana, Delhi, Noida. When these facilities came on the tax rebates and tax concession radar, we went on to Himachal Pradesh and Uttaranchal. So our major business is there and heavy investments have been made in North India/Uttaranchal and this year we are going ahead in a big way for both lighting and switchgear that are major life term businesses.

Q: Are you going to expand in the domestic market or in global market?

A: In both the domestic and the international market. We have been mostly into domestic in the past; our international business was about 5-10%. But for the last 2 years it has been growing from 10-15% and then this year we are expecting about 25% of our revenues from international business. Particularly, we have spread into Europe and to UK where we are having major business this year and we are expecting about Rs 75 crore revenues from the UK alone this year.

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