Dhanuka Agritech eyes 23-24% topline growth in FY11

In an interview with CNBC-TV18, M K Dhanuka, MD, Dhanuka Agritech says, the company is expecting around 23-24% growth by the year-end in the top-line and around 30-35% on the bottom-line.

Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Gautam Broker. Also watch the accompanying video. Q: I understand that you are planning an acquisition and this would be a seed firm that you are planning to acquire. Can you tell us how much money you plan to pump into the acquisition? Where would this money come from? Once the acquisition is complete, what would that do to your total production capabilities? A: Our main business is pesticides. We have four pesticide units and we are making expansion at our Sanand unit. The capex will be Rs 35 to 40 crore. We have already received that from Lighthouse PE fund in the month of September and those requirements will be met with that 8.25% equity which Lighthouse has invested in the company. Apart from this, we want to acquire a seed company around Rs 30-40 crore worth. The main focus will be that they should have good lines in their records and the seed should do very well as pesticides are doing. In agriculture, there are major four inputs; seeds, fertilisers, pesticides and irrigation. So, pesticide is having good opportunities in India because we have one of the lowest productivity in the world and the consumption of pesticides is only 570 gram. Q: Can you tell us how much you plan to put in, how much will your capacity grow by once you have completed this acquisition of the seed firm particularly? A: We are only in front stage. Our major focus is on pesticides where we are making expansion at Sanand. Our capacity will be double after the expansion which will be completed by March 2012. Q: We also understand that you had a plan to do an follow-on public offer (FPO). Is that on track? What kind of money are you planning to raise from the secondary market? A: Earlier the promoters were having 90% stake in the company. As per the direction of BSE and SEBI we were suppose to dilute it and to bring it to 75% level. That