See 40% growth in CY12, says TTK Prestige

In an interview with CNBC-TV18, TT Jagannathan, Chairman, TTK Prestige, spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of his interview with CNBC- TV18's Sonia Shenoy and Reema Tendulkar. Also watch the accompanying video. Q: The reason there has been a bit of a buzz in the company is that you have inked a pact with the Gujarat government for manufacturing unit. Can you give us more details on when will you be signing this memorandum of understanding (MoU) and what it involves? A: The MoU will be signed today or tomorrow along with Vibrant Gujarat, an initiative of Gujarat government. It will be for investment of roughly Rs 50-55 crore. Q: What is the kind of manufacturing facility, the capacity and this would be for cookers or kitchenware, some more details? A: It will be both for cookers and kitchenware. It will have manufacturing capacity of about five million pressure cookers and about five million kitchenware. Q: By when do you think this manufacturing facility will come on stream so that it will start contributing to your revenues? A: We hope by the end of 2011. Q: What kind of revenues are you expecting from this? In general, how is the core business looking and what is your outlook for FY11? There is an estimation that perhaps you can grow in that pace of about 35-40% in FY11 as well. Is that something that you can maintain? A: Yes, we believe we can maintain 35-40% growth in top-line. Q: So what kind of capacity expansions do you have at this point in time and when will those come on stream? A: We are expanding capacity in Coimbatore, in Roorkee in aluminium pressure cookers and in Gujarat we are going to add stainless steel pressure cookers. We will be adding close to ten million pressure cookers additional capacity. Roorkee will come on line in April; Coimbatore in June and probably by October-November Gujarat will come on line. Q: In FY12, can we see growth higher than 35% historically that we have been clocking in? A: We are planning the calendar year 2012 growth to be in region of about 40%.