Texmo Pipes to foray in CPVC pipes, fittings segment

Sanjay Agarwal, chairman and managing director (CMD), Texmo Pipes in an interview with CNBC-TV said that the company is looking to enter the Chlorinated Polyvinyl Chloride (CPVC) pipes and fittings space.

Below is the verbatim transcript of his interview with Ekta Batra and Reema Tendulkar of CNBC-TV18. Also watch the accompanying video. Q: We understand that the company is now planning to develop and also launch CPVC fittings. Could you tell us your plans with respect to that? A: Yes, the company is planning to enter into the CPVC pipes and fittings. This is like new and advanced version of the plumbing. The  full form of CPVC is Chlorinated Polyvinyl Chloride and is basically used for in the drinking purpose, household fittings and bathroom fittings. Also Read: Buy Welspun Corp; target Rs 308 says JRG Securities Q: Could you tell us how much are you planning to invest in manufacturing and launching these and when will they come into the market? A: The main things for the CPVC is the availability of the raw material, as there are very few manufacturer in the world who manufacture the CPVC compounds. We are in talks with the suppliers for the minimum of quantity assurance so that we get the raw material continuously for the production of material. Once that is finalised very soon we will finalise the extrusion line and the moulds for the fitting. Q: Then what sort of margins would you work on with regards to CPVC and what sort of demand scenario would you envisage at this point in time? A: The margin for the CPVC is much higher, currently we are working on the PVC and the plumbing section and the market is more or less the same. We will be operating in the existing market and through our dealer