Jan 06, 2012, 05.44 PM | Source: CNBC-TV18
Due to the increased capacity expected to come in by April, managing director of La Opala, Sushil Jhunjunwala says that volumes growth next fiscal should be around 50%.
He further added that the antidumping duty on imports from China will also help them increase their market share.
Below is an edited transcript of his interview with Reema Tendulkar and Ekta Batra. Also watch the accompanying video.
Q: Can you just take us through this capacity expansion which is expected to come on stream by April? What sort of demand are you catering to?
A: Our total capacity in Opal division will increase by 50% and our Uttarakhand plant will expand by 100%. I feel that the market demand will be good because people want to buy good products at an economical rate and our product fits in this slot. Also, anti-dumping duty has been imposed on imports from China and UAE which will help us increase market share.
Q: Once your entire capacity comes on stream in FY13, could you tell us what the revenue growth will be and if you could break that up in volume and even if you might see any pricing improvement?
A: Our volumes and the capacity wise growth next year should be 50% more than what we have done this year.
Q: Any pricing improvement we can expect?
A: Price improvement I have not calculated, but if any price improvement is there, then it will be added on.
Q: You have some amount of land which is worth around Rs 10-20 crore odd. What is the plan on that?
A: We want to use the land for our future expansion.
Q: So there are no plans of monetizing it at any point in time even if you get a good buyer?
A: No, we donít want to sell any of our surplus land.
Q: Could you tell us if you do need any kind of funding whether itís by equity or debt, perhaps in the next six months?
A: We are going for debt only and that will be mixed with our internal accrual and the bankís borrowing.