Honda order to earn revenues from 2013: Gabriel

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Honda order to earn revenues from 2013: Gabriel

In an interview to CNBC-TV18, Manoj Kalotkar, joint managing director, Gabriel said, "We got this order a month back and it will get into execution only in 2013, it takes about an year for the order to get executed."

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Ride control products maker, Gabriel India bagged new order from two wheeler major Honda Motorcycles.

In an interview to CNBC-TV18, Manoj Kalotkar, joint managing director, Gabriel said, "We got this order a month back and it will get into execution only in 2013, it takes about an year for the order to get executed."

Kalotkar expects sales accruals from this order to start trickling 2013 onwards. Its orderbook for the coming year stands at around Rs 300 crore.

Below is the edited transcript of Kalotkar's interview with CNBC-TV18. Also watch the accompanying video.

Q: We understand that you have won a new order in the South from Honda Motorcycles. What does this take your order book to? When would you start executing?

A: We got this order a month back it will get into execution only in 2013, it takes about an year for the order to actually get executed. So, we are looking at this orders kicking in from 2013 in terms of sales accruals. However, you must have witnessed, as you also mentioned the IIP has corrected that aberration. In fact we knew this was going to happen because November-December sales for the auto industry in general, be it two-wheeler or four-wheeler or commercial vehicle has been very good.

We see that trend continuing, so this puts us in a very good state in terms of our order book. We have got new orders, which are under execution right now. Couple of the models that we are supplying in terms of Sport Utility Vehicle (SUV) segment is gaining a lot of traction in Indian market. It has got launched in the auto expo. Just to name a few, we are in the Tata Aria, the Tata Safari Storme, which got unveiled at the auto expo, we are also in the Mahindra XUV500.

Gabriel as a company, we always had a very well diversified portfolio. We are in two-wheeler segment, three-wheelers, four-wheelers, passenger cars and commercial vehicle. On the whole if there is a little bit of correction, one particular segment of the industry at the global level we still seem to keep our numbers pretty much in control.

Q: These new SUVs, the new launches that you mentioned, by when you expect to start seeing some amount of revenues kicking in from those ventures?

A: We are the single source as of now for those SUVs. In addition, a two-wheeler, which got launched in the auto expo motorcycle, we are also a single source on that. It is a Royal Enfield motorbike. Royal Enfield is gaining a lot of strength in the market, so we are also doing well there.

Q: What does your current order book stand at?

A: To give a broad number, it is Rs 300 crore for the coming year.