New project to earn Rs 2000cr returns in 2yrs: Shri Lakshmi

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New project to earn Rs 2000cr returns in 2yrs: Shri Lakshmi

In an interview to CNBC-TV18, MP Agarwal, Chairman and Managing Director of Shri Lakshmi Cotsyn said the company’s two new expansion projects are likely to be commissioned by March 2012. Further, he said, "A turnover of about Rs 2,000 crore will be achieved in 2 years, post the commissioning of projects."

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In an interview to CNBC-TV18, MP Agarwal, Chairman and Managing Director of Shri Lakshmi Cotsyn said the company's two new expansion projects are likely to be commissioned by March 2012. Further, he said, "A turnover of about Rs 2,000 crore will be achieved in 2 years, post the commissioning of projects."

Below is an edited transcript of MP Agarwal's interview to CNBC-TV18. Also watch the accompanying video.

Q: What is the progress on the two Greenfield projects? Are they on track to be commissioned by March 2012?

A: Yes, they are and both projects which are mainly for textiles and some products that are to be manufactured for the first time in India. They are the import substitute products. The bed-sheet project that is the expansion from 20 million to 40 million and bed-sheet from 12 million to 13 million, and both these will be commissioned by March 2012. A turnover coming to around Rs 2,000 crore will be achieved in 2 years of commissioning.

Q: Can you take us through the reason why you are setting up two Greenfield projects? What sort of demand are you catering to?

A: We are in defence supply, so in case of technical textile there are items meant for defence project for which we have already some joint venture for the overseas company for which we are importing supply and that will be substituted with our Indian product. The present capacity is 20 million metre and it is fully utilized. We are working for 100% capacity taking it to 40 million.

Q: What about the textile park in UP? What are the plans for that?

A: We pushed to install capacity around 30 million of fabrics and some processing units, packing units for textile industry. The total layout for Textile Park of investment would be around Rs 1,000 crore.

Q: What is the impact of the depreciation in the rupee?

A: We are getting higher returns for the export that we are doing. Our export is around Rs 250 crore but certainly some exports are currency hedged in advance as well, which doesn't happen usually.
 
Q: Can you give us the guidance on what your top-line could look like, going forward?

A: For June, the top-line would be Rs 2,200 crore and for June next year, it will be around Rs 50,000 crore. In June 2011, we closed at Rs 1800 crore.