In an interview to CNBC-TV18, RS Vijayvargiya, president of Khaitan Chemicals & Fertilisers says, the company is spending Rs 35 crore to increase its capacity of single super phosphate (SSP).

He sees 20% year to year growth in revenues for the next three-four years.

Below is the edited transcript of his interview with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video.

Q: We understand that you have some plans to increase your capacity of single super phosphate (SSP), you are setting up a plant. How are you planning to fund this, what is the requirement?

A: The total cost of the project is Rs 35 crore. It will be funded from the banks; it has been already tied up.

Q: Can you take us through what sort of potential you see from single super phosphate?

A: I see a lot of potential in single super phosphate. The total production can increase by many folds by replacing the di-ammonium phosphate (DAP) fertiliser. So, it will be good fertiliser for atleast for marginal farmers.

Q: When will your SSP capacity increased by and how much?

A: It will be increased by around 2 lakh tonne within a period of 15 months.

Q: You have also seen a strong jump in sales of around 83%. Once single super phosphate comes into play, what is your ballpark figure in terms of revenues and profitability?

A: We will be growing by 20% year to year for the next three-four years. As far as revenue in rupee term is concerned, it will be increased beyond that. If it is 20%, I think due to inflation and increased cost, it maybe increased by 30% year to year basis.

Q: The investment of Rs 35 crore you said you have already tied up with bank. Could you tell us what the total debt on the books stands at post this tie-up of loans?

A: Post this tie-up, March 31, it will be around Rs 55 crore, if we avail the total loan for this project.