Poly Medicure to up capacity, to invests Rs 100cr in 3 yrs

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Poly Medicure to up capacity, to invests Rs 100cr in 3 yrs

Poly Medicure is planning to invest Rs 100 crore by 2013. The company currently has almost 75% of its total Rs 135 crore revenue from exports. In an interview with CNBC-TV18, Himanshu Baid, MD, Poly Medicure spoke on the business plans of the company in the current fiscal.

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Poly Medicure is planning to invest Rs 100 crore by 2013. The company currently has almost 75% of its total Rs 135 crore revenue from exporting products to more than 80 countries, including the US and Europe. The medical firm is expecting its revenues to grow from Rs 135 crore to over Rs 300 crore by 2013.

In an interview with CNBC-TV18, Himanshu Baid, MD, Poly Medicure spoke on the business plans of the company in the current fiscal.

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

Q: You have some investment plans to up your capacity, could you walk us through how much you are planning to invest, by when?

A: We have a plan for investment of around 100 crore in next three years in expansion. We are doing a capacity expansion on our current plants and then we are also planning to set up a new plant in Jaipur in SEZ for our future expansion in year '11-'12.

Q: What will this do to your revenues from hereon?

A: We are growing at around the rate of 30% right now and we want to maintain this growth rate. To maintain that, we need to add a lot of capacity here and that is what we are trying to do.

Q: You also have some inorganic plans of a possible medical devices company in the US or in the EU, could you fill us in on that as well?

A: Currently, we don't have any inorganic plans right now. We are trying to expand our capacity in our plants in Egypt and China. China plant is 100% subsidiary and we are adding more capacities there. We are also expanding little bit in Egypt right now. We are adding around 50% capacity in Egypt plant also.

Q: How are you funding all of this capex?

A: Mainly through internal accruals and borrowing at this moment.

Q: How much would you need to borrow?

A: We are looking at 50% borrowing and 50% through internal accruals in the next couple of years.

Q: You also have some plans to enter the diagnostic business, can you throw some light on the growth potential you see from that market and also whether it would be domestic focused, export focused?

A: It would be mainly domestic focused because still 80-90% of the devices used for diagnostic tests are being imported in the country right now and we will see a huge potential in this industry going by around 25% right now. It is one of the fastest growing in the healthcare sector. So we are adding some new devices which we are going to manufacture and there are mainly import substitutes.

Q: You spoke about 30% growth in your revenue, is that the growth you see even in your profitability or that would be growing at a higher rate?

A: We are going to maintain similar profit margins that we have been maintaining in the last few quarters. So we will be maintaining similar profit margins.