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Last Updated : Mar 08, 2016 03:25 PM IST | Source: CNBC-TV18

Have invested Rs 2000cr towards capex: Welspun India

In an interview with CNBC-TV18, Dipali Goenka, CEO and Joint MD, Welspun India, outlined her view on the state of business and outlook going forward.

In an interview with CNBC-TV18, Dipali Goenka, CEO and Joint MD, Welspun India, outlined her view on the state of business and outlook going forward.

Below is the transcript of Dipali Goenka’s interview with CNBC-TV18's Ekta Batra and Mangalam Maloo.

Ekta: One of the things that we have noticed is that there was an improvement in the margins and you said that there could be sustainability of margins at around 27 percent going forward. Your sense in terms of how the current quarter is going on and any guidance change that you would envisage?

A: I would maintain the same commitment that we have for the fourth quarter as well and as you know in the nine months that we have been we actually have achieved the number of the past year and our earnings before interest, taxes, depreciation and amortisation (EBITDA) has been Rs 200 crore higher than last year as well annually.

We continue the same commitment that we have to the market as well because the whole thing that leads us to do thing effectively is about our focus on innovation, on patents and also like becoming a partner to the customer rather than just being a mere vendor that is a complete different perspective that we have taken on.

Mangalam: But if you look at the last quarter the sales growth was actually muted because you were constrained by some sort of capacity. So, what is the plan in capacity expansion going forward and at the same time any third party tie ups that you are doing?

A: No, there won't be any third party tie ups but as you know we were in the project mode and we had just had that cap up on the manufacturing but as you go forward we have already spent around Rs 2,000 crore in our capital expenditure (capex) and as we go forward, we will see the impact of the investment that we have done and you will see that our volumes will grow accordingly.

Mangalam: So, could you quantify that what kind of impact do we see on the volumes as well as your revenue?

A: We will maintain the same as we have seen the revenue growth of around 10.5 -11 percent, that is what we are going to be seeing and the EBITDA margin of around 26 percent.

Ekta: We understand you have a lot of initiatives for women in your organisation as well. Since it is Women's Day any comments or any sort of guidance that you would like to provide us in terms of what the company might be doing?

A: The interesting thing that we do at Welspun is when we thought about what actually is corporate social responsibility (CSR) or what is the corporate social value that we talk about we basically talk about can businesses be agent of change and when we look at India as a country the challenge that we have as a country is about the literacy rate in women.

So, we actually have taken initiative of education, empowerment, environment and health and here we are empowering women in our communities around and we have a brand called Spun that actually is by the women for the women so that if the women earn their living the children go to school as well. So, that is where we are looking at.

We are also looking at more women at Welspun. So, 20 percent is the target at women in textiles and that is kind of something that we have really taken on women training, we have taken on women empowerment.
First Published on Mar 8, 2016 03:22 pm
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