Full impact of new unit only in FY13: Mirza International

In the midcap scene, Mirza International has been catching the interest of investors. It has recently undertaken a plan to expand capacity at its Greater Noida plant.

Rashid Mirza, Managing Director tells CNBC-TV 18 that the company is expecting the increase in capacity to add Rs 120-130 crore in terms of revenue in FY12. But the full impact of the new unit is expected to come in only in FY13.

The stock was trading up by 3%.

Below is a verbatim transcript of Mirza's interview with Ekta Batra and Reema Tendulkar on CNBC-TV 18. Also watch the accompanying video.

Q: We understand that there is some capacity expansion which is taking place at your Greater Noida unit, could you tell us when would it be commercially operational and how much would it up your capacity by?

A: We have started a new plant in Greater Noida, which has a capacity of almost 1.2 million pairs of baby shoes per year, which in terms of revenue means about 120-130 crore. At the moment, we have started trial production. In three-four months time, we should start producing. I think by 2012- 13, that unit should be fully operational.

Q: What are you expecting in terms of FY12 in terms of growth and in terms of bottomline as well?

A: FY12 should grow about 10% over FY11, but the full impact of the new unit should come in FY12-13.

Q: Any more capex that you have lined up currently?

A: Yes, we are going to increase the streamline and modernize the existing tannery capacity, which is going to employ another capex of Rs 80-90 crore spread over the next twelve months.