Himalaya International targets over Rs 500cr revenue by '15

In an interview with CNBC-TV18, Man Mohan Malik, Chairman and CEO of Himalaya International says, the company is targeting over Rs 500 crore revenue by 2015.

Below is the transcript of his interview with Reema Tendulkar and Gautam Broker Also watch the accompanying video.

Q: We understand that your project is expected to complete by the October of this year. Once it is commissioned, what kind of revenues can we expect from the new facility?

A: I believe that our capacities are huge. They are as huge as international capacities are in this product line. The total capacities are going to be around 250 tonne per day. At full capacity, these can lead to turnover in excess of Rs 1,000 crore per year. But we have challenges of raw material supply.

Q: Your current capacity is 50 tonne a day, right?

A: Our Paonta Sahib capacity is 50 tonne per day.

Q: And once this is fully commissioned and fully ramped up by next year you would be doing about 300 tonne a day, right?

A: The capacity will be 300 tonne per day. But as I said the other challenges like cultivation of specialty crops like potatoes with high solid, onions that fit into the appetiser rates. We and our partners are working so that we can have raw material supply of the adequate quality and quantity.

Q: You referred to the challenges in benefiting from the scale up of capacity, could you tell us in terms of revenue how would your revenue performance be going up from hereon year by year?

A: Our 2015 target seems to be over Rs 500 crore.

Q: Given the raw material concerns that you were alluding to, what would your earnings before interest, taxes, depreciation and amortisation (EBITDA) margins stand at for the coming year?

A: I think EBITDA margins in our kind of trade are very good, but we have to do a real hard work on the backend also. They will be sustained.

Q: When are you planning to meet with J R Simplot? When would you get the final approvals for that and you would finalise the entire structure?

A: As I said that we already have signed a MoU, they are big contingent; their team was in India last month. As I said we have to work on economy, we will have to work on contract farming. They have employed a very professional team and they are cutting out with various imperilments that they are going to get in future. They are resolving all very soon, laying out the plan like we look at farmers, how farmers to be roped in, how to import quality seeds, so once they are on board we have full team operations taking the company to the possible financial level.