Expect topline to grow 25% in FY11: VST Tillers

In an interview with CNBC-TV18, R Thiyagarajan, CFO, VST Tillers Tractors gave his perspective on the company's plans in FY11.

Below is a verbatim transcript. Also watch the accompanying video.

Q: Are you sitting on the throes of some capital expansion. This is a fairly big jump that the stock has seen. Is there something that is fundamentally changing in terms of capital expansion that is coming on stream?

A: It is not so with the capital expansion. But definitely the market which is growing in the last couple of years, which we are able to outpace the overall industrial growth and the products we are in to power tillers and also smaller range of tractors.

But we do look at ourselves as friends of the farmers. We would like to position ourselves in the field to the yield curve, which is from the soil preparation to the crop harvesting and post processing. We have a strong presence as of now in the soil preparation with our power tillers and tractors.

We are looking to take forward to support the farming community. Also a few years back we took up the rice paddy transplantation which is labour saving which substitutes the labour with transplanting. We are looking at various other options which definitely as of now is in the conceptual stage.

It will take another three to six months for us to take forward our long term growth. What we are seeing for the last few years is in line with the market, which is the government's thrust on the agricultural sector and the market is also growing with the monsoon and also the thrust by the government.

Q: Could you just tell how demand is panning out this monsoon versus last monsoon because this monsoon is expected to be currently below expectations as well?

A: It is not only the monsoon which is playing a major factor as far as the farm mechanization is concerned especially the products which we are in the tillers and tractors, the government's thrust and the credit availability to the farmers and the government support through the subsidy available to the beneficiaries, farmers, which is also a major factor which is enlarging the market, which is also propelling the market.