India Foils' turnover similar to ours, says owner Ess Dee

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India Foils' turnover similar to ours, says owner Ess Dee

Debdeep Bhattacharya, Marketing Director of Ess Dee Aluminium, said, "India Foils has a capacity of 19,000 tonne, similar to Ess Dee, which has an 18,000 tonne capacity. So its turnover could be similar to that of Ess Dee's."

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about India Foils See previous management interviews See what other Experts & Brokerages are saying about India Foils

India Foils , owned by Ess Dee Aluminum , has re-listed today. The stock rose by as much as 60% after listing.

Also read: India Foils re-lists today

Debdeep Bhattacharya, Marketing Director of Ess Dee Aluminium, said it was hoping India Foils turns into EBITDA positive soon. On what the cost was for the company to rehabilitate India Foils' second plant, he said, "At this stage, it would be difficult to pinpoint a figure but the total rehabilitation of India Foils over a period should not exceed more than Rs 100 crore but that will be on a prolonged period."

"India Foils has a capacity of 19,000 tonne, similar to Ess Dee, which has an 18,000 tonne capacity. So its turnover could be similar to that of Ess Dee's," Bhattacharya said.

Here is a verbatim transcript of Debdeep Bhattacharya's exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: We understand that India Foils in EBITDA negative, by when you think now that Ess Dee is at the helm of India Foils, by when it can turn to profitability?

A: Very soon, we have a track record and we think it's profitable that is why we took up the challenge. One of the plants is now fully operational and the response from the market is phenomenal. People have respected our decision to enhance capacity. With the other plant, we are at the trial stage and operations should start soon. It will be incorrect to make a forward looking statement but you will see healthy results very soon, faster than most people would expect.

Q: How much money will be required to rehabilitate the second plant?

A: We have talked about it earlier. At this stage, it would be difficult to pinpoint a figure but the total rehabilitation of India Foils over a period should not exceed more than Rs 100 crore but that will be on a prolonged period. Just to set up second plant should not cost us too much. Because it was a running plant, which closed down, we had a situation where even the power lines were not switched off by the former owners of the business - it's not that we need to set up the machine. The workforce also has cooperated phenomenally in this venture.

Q: Could you just walk us through what kind of sales India Foils is reporting at this point?

A: I don't have the exact figure but this year it would be very low around Rs 100 crore plus. However, India Foils has a capacity of 19,000 tonne, similar to Ess Dee, which has an 18,000 tonne capacity. So its turnover could be similar to that of Ess Dee's.