'13 to be golden year for sector: Transformers & Rectifiers

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'13 to be golden year for sector: Transformers & Rectifiers

Jitendra Mamtora, CMD, Transformers & Rectifiers said 2013 is going to be a golden period for the industry.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Transformers See previous management interviews See what other Experts & Brokerages are saying about Transformers Transformers BSE | NSE 31/05/12 Are Mutual Funds betting on Transformers?

There has been big buzz in the market is that the promoters of Transformers & Rectifiers could be selling part or their entire stake in the company.

In an interview with CNBC-TV18, Jitendra Mamtora, CMD, Transformers & Rectifiers clarified that the promoters have no plan of selling their equity.

He further said 2013 is going to be a golden period for the industry. "This year, the profit after tax (PAT) margins are going to be 8-10%. But in the coming year, it will be anything between 12-15%," he added.

Below is a transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video.

Q: The big buzz in the market is that the promoters of the company maybe selling part or their entire stake in Transformers & Rectifiers. Is there any such move?

A: This is just a rumour. Earlier also there was a rumour that some multinational company is taking over our company and all that. But we have no plan of selling our equity neither diluting our equity, except for whatever is required mandatorily. This is our passion. Besides, the business it is our passion. We have created this company and we are not going to sell this.

Q: Is it possible that you maybe in talks for a JV with an international company for technology which is why the rumours might have initiated in the first place or you categorically deny not speaking to any of the MNC company at this point?

A: For technology transfer, we have been discussing for many years with different companies. It is solely for technology transfer.

Q: There had been names going around, GE and Crompton Greaves. Can clarify for us whether you have spoken to GE or Crompton Greaves just for a pure technology transfer?

A: Neither of them. GE does not make the transformer in which we are interested in developing the technologies. So, they are not into this at the moment.

Q: Whom are you speaking for any technological tie up?

A: This we cannot disclose at this stage.

Q: Are you close to striking a deal?

A: No. This takes a long time. The technology we are looking at is for 765 KV transformers and 400 KV transformers; we have already developed our own 400 KV transformers. To get a qualifying requirement in some of the utilities, we need to have a technology. We are talking about 765 KV transformers. But fortunately we have already tied up with a Ukrainian company. There we don't call it a technology transfer, but it is an agreement with that Ukrainian company for the supply of 765KV transformers to power grid.

So, it is going to be a joint date between us. And then we will share the business which is going to come. We are not going to pay anything to them for the technology and for the training which they are going to give to our people here and there in their plant.