In an interview to CNBC-TV18, Tilokchand Kothari, Managing Director at Visagar Polytex shares his outlook on the financial performance of the company in the quarter gone by and the road ahead.
Going ahead, the company plans to add more capacity to meet increasing demand. In addition, fund expansion aided by internal accruals and debt is on the cards, he adds.
Below is the edited transcript of the interview:
Q: Can you just apprise our viewers about what the company does. We do understand that you do work in textiles and mainly ethnic wear but can you give us a sense in terms of what your main products are, where do you get majority of your revenues from and what are the divisions that the company works in?
A: Our product line includes various fabrics in the non-branded market with wide range of sarees and lehengas. Going a step ahead from existing product line, we have introduced a new product, which is salwar suit. Currently, salwar suit is estimated to be a Rs 20,000 crore plus industry and a sizeable chunk of ethnic wear in the market. Given the fact that this quarter was full of wedding and festivals we are very much optimistic about this quarter result. Due to aggressive marketing done by our team, we expect to be much better than the previous quarter and we are also expecting good results in the years to come because of our expansion in the retail sector through our franchisee.
Q: But what about the whole of FY15? What about the whole of FY15, what are you likely to end the year with in terms of revenues as well as margins?
A: Our current capacity is approximately 125 billion stitches per annum. We have recently announced our plants to have around 200 VIVIDHA franchise showrooms across the country. We plan to meet this increased demand through captive production, hence the proposed capacity will be much higher and the new machinery will be installed as per the increasing demand. Requirement of funds for this capacity increase will be met out through our existing resources and the bankers. We have already sanctioned the term loan from the bank.
Q: Can you tell us what other segments do you all work in. For example how much of your revenue only comes from textile?
A: In the first quarter, we got a revenue of Rs 20 crore and we are expecting a very good revenue through the years to come.
Q: That is understood, but do you have any other businesses, do you have any real estate in your portfolio, which you would look to monetise at some point in time, any sort of infrastructure that you have which you might look to monetise as well?
A: No, presently we are only in textile. Our group companies are into media also. So we are expanding textile, we are in the bridal wear and saree business.
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