Shakti Pumps aims at capacity utilisation of 65-70% in FY16

Shakti Pumps board approved conversion of 750,000 warrants to the promoter Ankit Patidar at Rs 80 per share on preferential basis post which the promoter holding would stand at 49 percent with an intention of taking the promoter holding to 51 percent said said Akhilesh Maru, CFO, Shakti Pumps in an interview to CNBC-TV18.However, the company would not look at raising new equity to promoters to take the holding to a majority of 51% buy would look at achieving that through creeping acquisition, he added.Talking about the outlook for the company, he said they are hoping to close the year with revenues of Rs 315-320 and are in line to achieve revenue guidance target of Rs 450 crore in FY16 backed by improvement in capacity utilisation.The capacity through technological upgradation would go up to 65-70 percent from the current 50 percent levels, said Maru.According to Maru, with the Gulf geographies still being troubled areas, company has ventured into newer territories to hedge the risks. Going forward they hope to achieve deeper penetration into these newer areas.Meanwhile, the company for the coming 12-18 months is not looking at raising any capex for further expansion and would instead look at optimum utilisation of the available capacity.Maru said the going forward the company would also look at bringing down the working capital and thereby reduce debt by Rs 4-5 crore.The company is a a leading player in India’s Stainless Steel Pumps segment with robust global presence. Has current capacity of 4,50,000 pumps at two locations in Pitampur (MP). The company transformed itself into a manufacturer of stainless steel (SS) pumps in FY03 and is currently India’s second largest player in this segment (after Denmark-based Grundfos) with a strong global presence.It exports to 100 countries, with the Gulf region forming 60% of total exports.For the entire interview watch video