To use IPO funds for project expenses: Time Technoplast

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Time Technoplast is in the limelight as it has got record subscriptions. Anil Jain, Managing Director of Time Technoplast stated that they are going to deploy the money raised through the IPO on their project expenses both in India and overseas.

Jain stated that Time Technoplast has two projects in India. Apart from that, they are also putting up projects in the UAE and Poland.   

Time Technoplast will use Rs 50 crore for the Indian projects, while Rs 40 crore will be used for the overseas projects.

Excerpts from CNBC-TV18's exclusive interview with Anil Jain:

Q: Tell us where are you going to be deploying the money you have raised via this IPO?

A: We are going to deploy that for the project expenses both in India and overseas. We have got a healthcare project coming up in Baddi. We are also doing some injection moldings operations for automotive components and both of them will be in India.

In addition to that, we are putting up a project in UAE, in a place called Sharjah, and another one is coming up in Poland. So, we will be using about Rs 50 crore in the Indian projects and Rs 40 crore in the overseas projects.

Q: Where do you see margins stabilising at this point in time? Are there any cost pressures that you are factoring in, for margins to be sustained at levels of about 20%?

A: I do not really see that to be a problem. If you look at the record of the company, we have been able to maintain our margins at this level all the time, even when there was this volatility in the raw material prices. I guess we should be able to do that in the future as well.

Q: When are the various expansions you listed coming on board?
 
A: The first one is coming up at Sharjah and should start in June. It is almost ready but unfortunately, in UAE there is a  power problem. But they will give us power by the end of the month, so in June we will start Sharjah.

In addition to that, our Poland project will actually happen in October and our other two projects in India will also be happening around the same time. All these projects will then finish by October and will start contributing both to the topline and to the bottomline.

Q: What kind of a revenue mix are you targeting, between your segments, for FY08 and for FY09?

A: Unfortunately, I am still in the black out period until three days after the listing of the issue, so they will not let me speak about it.

Q: What is the capacity currently and what would it be a year down the line, when the financial year would have ended?

A: We have got about 65,000 tonnes processing capabilities of the polymers. It will go upto 1,00,000 tonnes as we complete these projects.

Q: How does it pan out globally for you now after the rise in raw material prices and the appreciation of the rupee?

A: The raw material prices had been volatile in the past as well, but we can see that stabilizing now and probably going downwards. The reason is that, there is a lot of polymer capacity coming up in India and around, which should start contributing.

We have, in the past and probably in the future as well, will be able to pass it on to our customers who are very understanding when the polymer prices go up. Of course, on the rupee front we are very happy about it because there is a substantial import of raw material and the company will be greatly benefited by that.