Mavens Biotech plans Rs 70cr capacity expansion

Here is a verbatim transcript of the exclusive interview with MD Kanther on CNBC-TV18. Also watch the accompanying video.

Q: There is bioinformatic space and there is a tissue culture space as well in which you are planning some bit of expansion. Tell us about these two core businesses because you are still about Rs 44 crore on an annualized basis company, what sort of growth prospects do both these individual segments offer?

A: Right now we are engaged in the tissue culture plant and bioinformatic center. We are going to expand our capacity of tissue culture plant and set up a new unit in Maharashtra. The company has shortlisted three tissue culture companies for acquisition. One is in South India, two others are in North India, which are in the area of potato and bamboo. The company is acquiring stake in one Eastern India based power company, which has already set up 10 megawatt biomass based power plant in West Bengal. We are going to set up three new biomass power plants in the total power capacity of 23 megawatts, for which total capital required over the next three years is Rs 70 crore.

Q: Rs 70 crore is a lot of money, I believe your quarterly revenues even in the latest quarter were about Rs 11.5 crore. How are you planning to gather Rs 70 crore?

A: Through internal accruals and from promoters. You will see the profitability of these acquisitions shall reflect in Q4 results and Q3 and Q4 results will be better than Q1 and Q2 results.

Q: Are you referring to second half of the current year, that will end in March 31 or are you referring to the two quarters of next year?

A: Two quarters in next year. The total business will be better in the next year after acquisition of other companies.

Q: What is the connection between the power companies that you are seeking to acquire, which will run on biomass? Will you be providing them any raw material? What is the synergy between the two units that you have already run and the power unit that you are getting into?

A: One unit is already running at West Bengal and for three power plants, we are acquiring units in West Bengal. For one we have already acquired stake in Eastern India based power company and for that the due diligence has been completed.