Emmbi Industries recognized as R&D centre by govt

Emmbi Industries has been recognized as a research & development (R&D) centre by the Ministry of Science & Technology.In an interview with CNBC-TV18, CMD Makrand Appalwar explained what the recognition means for the company going forward.Below is the verbatim transcript of Makrand Appalwar’s interview with Reema Tendulkar and Nigel D’Souza on CNBC-TV18.Reema: How will this recognition benefit you?A: Primarily this will help us to allow a greater spend in the R&D sector. Enmbi Innovation Lab, our R&D setup or our R&D arm, we are just going ahead with 3D printing and prototyping and simulation based software and hardware. This will increase our R&D pipeline and in turn that will help us launch new products in various verticals like water conservation -- which is the primary need in the Indian and international market today -- or for energy conservation. So, all these things are the new products that will help us to get away from the commoditised products which we used to be in. It will improve company’s bottomline as well as topline through the more sophisticated product profile.Nigel: You have mentioned that getting recognition as an R&D center that could be a positive. You have also mentioned that focus on the water spaces as well I think water irrigation spaces what you are focusing on. Now in the last few years you have done a CAGR of close to around 50 percent, 28 percent approximately is what you have done in the last few years. Now with these positives coming in what will your topline look like maybe in FY17, FY18, could you give us some guidance and also you were talking about your bottomline? A: We are in the silent period. So, I won’t be able to really give you the numbers. However, if you see our nine monthly numbers, we were almost 15 percent when it comes to the topline and EPS was almost up 80 percent if you annualise it. Historically if you see, our last quarter has always been the most strongest. So, I am quite positive and optimistic about it. It is going to be good and a patent which we have registered that will also help us to launch some new products which we already started doing it and that should give us some good realisations. Reema: Any new products and process patents that you are looking to file in the next one year? A: There are quite a few, there are four specific patents which are relating to the water conservation space are in the pipeline and we have already started the free trial. So, probably within next three to six months, we should be filing couple of patents when it comes to water conservation area. Nigel: Your stock currently has moved up. The street likes what you are saying. You have been increasing stake as well, promoters have been increasing stake, what is the exact target stake that you want to hold? A: We would like to continue increasing stake. Nigel: To what level?A: Till we reach probably 65-70 percent.