Capacity expansion to impact output from Q3: Globus Spirits

Globus Spirits increased capacity in three plants from around 40 million litre to 80 million litre.

Below is an edited transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: Take us through this capacity expansion which you have completed in Q3FY12. When does it come on stream and what sort of utilizations will you be working with initially?

A: We have actually completed the expansion. The capacity in the three plants which was around 40 million litre has gone up to 80 million litre and will come on stream from Q3. The impact of full production will be in Q4 of this year.

Q: In the last half year you saw a significant increase in your interest costs and even your loans had gone up. Where does your debt currently stand at and has there been a further increase in debtor days?

A: Debt wise, the company is much leveraged. We have a net worth of around Rs 200 crore and today the long-term loan outstanding is around Rs 20 crore and the short-term loan for working capital is around Rs 50 crore. So the debt-equity ratio is very highly leveraged position; we can take more debt if we want but we want to play it safe.