Expect soyabean segment to do well this yr: Khaitan Chem

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Expect soyabean segment to do well this yr: Khaitan Chem

In an interview with CNBC-TV18, Shailesh Khaitan, CMD, Khaitan Chemicals and Fertilisers, spoke about the latest happenings in his company and sector.

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In an interview with CNBC-TV18, Shailesh Khaitan, CMD, Khaitan Chemicals and Fertilisers , spoke about the latest happenings in his company and sector.

Here is a verbatim transcript of the exclusive interview with Shailesh Khaitan on CNBC-TV18. Also watch the accompanying video.

Q: Very recently you signed a MoU (memorandum of understanding) to acquire the fertiliser and manufacturing facilities of Jairam Phosphates. Could you tell us a little more about this MoU? What's the kind of money outlay that will be required, when would you complete this acquisition? When would the capacity come on stream for you all?

A: We expect to acquire the company in the next 30 days time. Within the next 45 days, we expect to complete all the actions on the machine, etc and we should be in production form today, within three months in this new acquisition.

Q: In terms of a capacity what does this bring on to the table for you all? How much would yours get augmented by?

A: We are the largest SSP (Single Super Phosphate) manufacturing company in the country. Today, we got a capacity of 8.45 lakh tonne. In the first phase, this will add further about 70,000 tonne. In second phase, we expect to take it up to 1.40 lakh tonne more. So that will add a descent capacity to our existing facility.

Q: And when would these phases get completed, phase one and phase two?

A: Phase one should be in implementation in the next three months time. The phase two we do expect in the next 12 months it should be on.

Q: Could you then explain what this would actually do to your revenues because in FY10 you had quite a dismal year, your revenues were down around 42% so if you could explain where this downfall came in terms of revenues for you? What this new acquisition of facilities would do for your revenues going forward?

A: Basically, Khaitan Chemicals Fertilsers has two segments. One is the SSP fertilisers division, one is the soybean division. The major impact on revenue has been the reduction in the soybean division where the production has fallen drastically. The reason for that was a very volatile soya market and the economy of production was not their in soybean. So that is why the turnover has gone down. But I do expect that in times to come once again the soybean will be having the normal margins.