In an interview with CNBC-TV18, Surinder Kapur, CMD Of Sona Koyo, spoke about the latest happenings in his company and his outlook.
In an interview with CNBC-TV18, Surinder Kapur, CMD of Sona Koyo, spoke about the latest happenings in his company and his outlook.
Below is a verbatim transcript of the interview. Also watch the video.
Q: For nine months you have already seen growth of around 21.6% in terms of sales. What is your guidance in terms of FY12?
A: We will complete this year on a consolidated basis because our subsidiary has started production this year of about Rs 1,160 crore. On a standalone basis, we are about Rs 1,015 crore and next year we expect this Rs 1160 crore to go to Rs 1,600 crore because our own standalone growth will be there plus the growth of the subsidiaries that we have in the group now. Therefore, we are seeing this kind of growth based on the fact that there will be an industry growth of around 15-20% and we will get our new businesses that we have acquired, which we will ramp up during the year, which is for Toyota, Honda and Nissan.
We are seeing good growth. This will continue. The Indian market is poised to get to five million vehicles by 2015 which is doubling from this year. That will happen because the market is growing.
Q: You import a significant portion of your components from Japan. Have you at all faced any kind of production shortage on account of the unfortunate spate of incidents there and will that in any way affect your supply?
A: The answer to that is not known to anybody today. The whole world is waiting. The whole automotive world is waiting to understand what the reality of the situation in Japan is because as you know Japan is not necessarily only the imports that we do but I think more importantly some other electronic components or the basis of the electronic components for automobile manufacturers globally are waiting to understand how much damage there really has been.
I am told that JAMA, which is the Japan Automotive Manufacturers Association, will release some information on April 15 to tell us what the damage could be. In terms of what we import, we are localizing a lot what we import but some other electronics of course we have no plans earlier to localize. But seeing this situation and in any event strategically going forward, I think many companies are going to source their materials from various geographies, so that they are not dependent on one region itself.
But this very fluid right now and I think all we are reading in the press is that some companies in North America are beginning to slow down production like Honda etc but I don