Sintex buys France-based Nief Plastic

Excerpts from CNBC-TV18's exclusive interview with Amit Patel:

Q: Can you outline the sales and financials of the company that you have acquired and the market share that it has in the market in which it is operating?

A: We have acquired Nief Plastics which is a French company. It is also the number one composite manufacturer in France. We have acquired 100% stake in this company for above 30.9 million euros. Its last year's revenue was about 110 million euros and EBITDA is expected to be about 10-10.5 million euros.

Q: You have picked this up at one-third the valuations of your sales. Is that a question on profitability off this company? What profit did it make last fiscal and what sort of margins does it operate at?

A: We have bought it at about 0.37x on sales and about 3.9 on EV to EBITDA ratio. It has always been a profit making company. From last year, it has increased its EBITDA margins as well as profits. It has been operating since 1934.

Q: What are the operating profit margins for this company and what is your operating profit margin as of right now?

A: For Nief, it has been in the range of between 7.9% to 8.9% EBITDA margins on sales. For Sintex, it is about 21.34%.

Q: What kind of synergies would you draw from a business like this and also does the company have debt that you are taking on your books?