See Manesar plant turnover touch Rs 200 cr in 2 yrs: Subros

Subros recently inaugurated a new manufacturing facility for radiators in Manesar. The company expects its entry into radiator manufacturing to improve utilisation of capacities.

Ramesh Suri, chairman, Subros says at the moment the turnover from the plant will be 3.5 lakh units annually and will go up to 8.5 lakh units in two years and in rupee terms it will be Rs 70 crore annually now and reach up to Rs 200 crore in two years.Below is the verbatim transcript of Ramesh Suri’s interview with Reema Tendulkar and Nigel D’Souza on CNBC-TV18.Reema: Could you give us some details about this manufacturing facility, what will be the total capacity of this facility as of now and what could be the potential revenues? A: We have just started this line in Manesar plant. We had the capacity earlier and to utilise that capacity our collaborator, they joined hands with us for joint manufacturing the radiators at Manesar plant. At the moment the turnover will be about 3.5 lakh annually and it is going to touch about 8.5 lakh in two years time. Reema: Just to get the numbers right, you are saying 3.5 lakh is going to be the turnover, is that it? A: It is the number of units, 3.5 lakh units. Nigel: In terms of turnover? A: The turnover will be about Rs 70 crore now and it will touch about Rs 200 crore in two years time. Nigel: For it to go from around Rs 70 crore to around Rs 200 crore will you be investing more in a new facility, will you be looking to ramp up this particular capacity, could you give us those details? A: At the moment we have already started one line and it is going to be added with another two lines in the due course of time and then going to the capacity of 8 lakh capacity. Reema: Since this is a little bit of a different segment for you compared to ACs, could you tell us what the margins will be that you will enjoy? A: Besides the AC system, what we are supplying for the passenger vehicles, we have gone into the refrigerated vans also which we have started supplying to Tata on Ace vehicle, Dost on Ashok Leyland and Mahindra on Bolero. These are the three models which we have already started and we are expecting good number of vehicles. Now with the retail segment as you know it is increasing and it is going to be as a utility van. At the moment it is going to be for these orders which we have received for the export model for these manufacturers. Besides this we have gone into the railways also. We have got a good number of orders for the drivers air condition to be done now and which is upgradation of the facilities by the railway authorities. So, we have got about 300 units for the railway drivers cab order and this is going to further with the increase of the number of engines and manufacturing which railway is now going to have with another location, I believe they are having besides the utilisation of the capacity what they have in Varanasi, they are going to have another facility in Bihar and that the negotiation or the final stage with the company where they are going to have that type of facility is going to be maybe starting very shortly in Bihar.Nigel: I just wanted to drive onto that point, you were talking about some new orders, you were giving us capacity in units, could you quantify that in terms of revenues how much would that be, what is the total quantum of those orders that you have got? A: At the moment, what we are supplying and the orders we have got, we are fully having the capacity as far as the investments is concerned. It is already we have initiated earlier and that investment is being utilized in all these orders and there is no new investment as far as this financial year is concerned. We are expecting that in the next financial year where we are going to have the additional business and additional orders and we will be planning for that maybe by the end of this financial year and start working on those lines and everything is in process and we have already planned for the next year also how to move further for the expectation of our orders from the present and the new customers also.