Insecticides India's FY10 sales to cross Rs 425cr

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In an interview with CNBC-TV18, Rajesh Agarwal Managing Director of Insecticides India spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of the interview. Also watch the video.

Q: First one word on your capex plans - are things on track for Udhampur plant to be up and running in January?

A: Everything is on track. It's delayed a little but we are confident that in January this Udhampur plant will come into production.

Q: You have already done Rs 245 crore of revenues in the first half. Do you think you would then be looking at Rs 450 crore of sales this year and maybe even Rs 35 crore of profit after tax (PAT)?

A: Definitely. Internally, this is the target. But I am confident that under all circumstances we will cross Rs 425 crore of sales with keeping broadly 8% of margins.

Q: So that would account of Rs 35 crore in terms of PAT?

A: Approximately Rs 30-35 crore - somewhere in between. I cannot give the exact number right now but we are eyeing that type of margins.

Q: I believe you are foraying into vegetables and plantation as well. What kind of revenue split would you see then between your core, which is rice and wheat and these new verticals you are getting into?

A: We will increase our share in these alternative crops basically. We target about 15% market share from these crops in particular because of new introduction of certain products, which we were just formulating in the past. Now we have some technicals of herbicides in particular that has helped us in increasing our brand share in this segment.

Q: How has the Rabi crop been?

A: Rabi crop seems actually because the rainfall, which happened now, should help the farmer. I do hope the growth, which we have started in the Kharif season, though it was not very good, we should continue with that growth and we are aggressively moving towards our target.

Q: By when do you think you will make a proper entry into the export market because some of your larger peers are well entrenched in exports of insecticides? By when do you think you will manage to do it?

A: That's true. The exports from India are growing and we are putting up our new plant at Dahej in Gujarat. That should help us a lot increasing our export sales. At present the technical manufacturing capacity of the company is 2000 tonnes but will take it to 10,000 tonnes plus with the new plant coming in the next season. Definitely we will be targeting a good export volume for the next year - 2010-11.