Sejal Architectural sees FY11 topline at Rs 300cr

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Sejal Architectural sees FY11 topline at Rs 300cr

In an interview with CNBC-TV18, Amrut S Gada, Chairman and Managing Director of Sejal Architectural Glass Ltd, spoke about his outlook for the company.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Sezal Glass See previous management interviews See what other Experts & Brokerages are saying about Sezal Glass Sezal Glass BSE | NSE 10/02/12 Are Mutual Funds betting on Sezal Glass?

In an interview with CNBC-TV18, Amrut S Gada, Chairman and Managing Director of Sejal Architectural Glass Ltd , spoke about his outlook for the company.

Below is a verbatim transcript of an exclusive interview with Amrut S Gada on CNBC-TV18. Also watch the accompanying video.

Q: Can you clarify on this issue of pledging shares with Nirma and them having converted that pledge?

A: It is a pledge. We have taken certain inter-corporate deposit (ICD) from Nirma of Rs 10 crore for our capex requirement and working capital requirement. Our working capital requirement for this project is around Rs 80 crore. It is in the process of sanctioning. We are hopeful of getting the sanctions from the banks in the next two weeks.

Q: How much promoter stake was pledged in the first place to Nirma?

A: It is 10.42%, 30 lakh shares.

Q: By when do you intend to repay it?

A: By first quarter of next financial year.

Q: So the pledge is not been redeemed yet or Nirma has not converted that pledge into 10% holding in the company, right?

A: No, it's just a pledge against the ICD. Nirma is our supplier for soda, as it's the major raw material for out float manufacturing.

Q: What is this expansion for which you need Rs 80 crore of working capital? Is it capacity enhancement?

A: Our object of the initial public offering (IPO) which we did in 2008 for the Greenfield float glass project, which is now complete and we are in production. Last month we started our commercial production. So the whole capex investment in that project was Rs 610 crore and working capital requirement is Rs 80 crore. Since the project got delayed by about two-three months, the working capital is in process and we have started the commercial operation. Impact of that commercial operation on topline will be the next financial year.