Manaksia plans restructuring to unlock value

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Manaksia plans restructuring to unlock value

In an interview with CNBC-TV18, Basant Kumar Agrawal, managing director of Manaksia, spoke about the latest happenings in his company and the road ahead.

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In an interview with CNBC-TV18, Basant Kumar Agrawal, managing director of Manaksia , spoke about the latest happenings in his company and the road ahead.

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

Q: Can you take us through your management restructuring plans?

A: Our management is planning for restructuring since last couple of weeks. However, nothing has been finalised. We are still on the process of planning to restructure the company, so that the value of the company goes up and it will be more profitable company. That is the idea behind it.

Q: By when do you expect to crystallize it? What kind of changes are you looking at when we speak of management restructuring?

A: In fact, it will take another quarter or two to crystalise. Let us finalise it. After that we will inform you.

Q: Getting to your business, your margins improved in December. Are you an integrated player because the kind of products you make, you should be facing raw material pressures?

A: As far as our Q3 results are concerned, topline has definitely increased by around 20% but our bottomline, if we take consolidated figure, it is more or less in-line with last year's figures. Regarding the pressure for the raw material, in fact, we are producing value added products only wherein the prices of raw material does not matter much to us.

Our margin remains same whether the prices of the raw material go up or down.

Q: For nine months of FY11 you have already done around 28% in terms of revenue growth. Can you give us some guidance in terms of a segment performance for FY12? What sort of growth can we expect going forward?

A: If you see division-wise performance, packaging is contributing around 11% to 13%, while mosquito coil contributes around 5%. Another product, that is, paper is doing around 5-6%.

The major revenue is coming from metals and what we see in future for next couple of years that should be the same. This figure will remain same for the subsequent years also.