To expand building products line: Ramco Industries

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To expand building products line: Ramco Industries

VC & MD at Ramco Industries, PR Venketrama Raja says that for FY07-08 they will add a couple of factories for their building products and they will also expand their product line in the distribution channel.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Ramcoind See previous management interviews See what other Experts & Brokerages are saying about Ramcoind Ramcoind BSE | NSE 31/05/12 Are Mutual Funds betting on Ramcoind?

Ramco Industries is the stock that is featuring in three different funds of Pru ICICI, with the emerging star growth fund investing as much as 2.09% of its net assets in the stock. Pru ICICI has been very bullish on this stock.

VC & MD at Ramco Industries , PR Venketrama Raja says that for FY07-08 they will add a couple of factories for their building products and they will also expand their product line in the distribution channel there.

He adds that they have an extensive distribution channel in the rural markets across India and they are looking to see what other products they can sell through those channels.

Excerpts from CNBC-TV18's exclusive interview with P R Venketrama Raja:

Q: Take us through the capex plans that you have for your textile division as well as for the building products division. What is the agenda for Ramco for FY07-08?

A: I think for FY07-08 we will add a couple of factories for our building products and also expand our product line in the distribution channel there.

The key investment for us will be on our Hilux Boards, basically a new product introduction in the Indian market, which has started to do well. We are trying to add more capacity probably in the north with that, so that will be a key capex plan.

Apart from that, in our textile division we are adding more capacity with compact spinning for our export markets into Europe.

Q: You have a presence in cement and textile, but you also signed a MoA, Memorandum of Arrangement, for venturing into plastics. What's the plan in terms of growth there?

A: The basic thing is that we have an extensive distribution channel in the rural markets across India. So we are looking at products to see what other products we can sell through those channels. This is a cautious first step into seeing whether this will work into the building products market.

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