Hope to book orders worth Rs 300-500cr soon: PSL

Ashok Punj, managing director, PSL in an interview to CNBC-TV18 said that the level of enquiries and tenders is picking up which indicates that the market is turning to a more positive trend this year.

PSL has submitted tenders worth Rs 200 to about Rs 500 crore and is optimistic about securing some of these orders. "We hope to book Rs 300-500 crore worth of orders. The value of bids submitted and that of total work is to the tune of Rs 800-1,000 crore," he added. Below is the edited transcript of Punj's interview with CNBC-TV18. Also watch the accompanying video. Q: We understand that you are submitting tenders which are worth Rs 200 to about Rs 500 crore. When are you expecting to hear from them? What is the nature of these orders with respect to the kind of margins you might enjoy if you win? A: The market has been slow in the last couple of years but there is a pick up in the level of enquiries and tenders. This indicates that the market is turning to a more positive trend this year and possibly next year. This is encouraging for the entire industry. We have four major water pipeline projects under bid. There is a Indian Oil tender for a fairly large oil pipeline which is also under bid. PSL is optimistic about its chance of acquiring some of these orders because we are multi locational pipe manufacturing unit. We have competitive advantage because of freight. Freight is a major factor in our projects and we are confident that we are going to secure some portion of these tenders as orders. Q: Could you give us a sense of how much you could possibly expect to procure from these tenders and by when? A: Of all the ones that I have mentioned including the water pipeline and the Indian Oil project, we hope to book Rs 300-500 crore worth of orders. The value of bids submitted and that of total work is to the tune of Rs 800-1,000 crore. Our success rate is based on our locational advantage from our mills in Chennai, Vizag, Jaipur as well as Kandla in Gujarat, this gives us a significant freight advantage over competition.