Will start production in Chalisgaon over the next few weeks and big orders will executed from this plant, says ML Mittal, MD of Bharat Wire Ropes.
Will start production in Chalisgaon over the next few weeks and big orders will execute from this plant, says ML Mittal, MD of Bharat Wire Ropes.
Bharat Wire's capacity utilisation at current plant is at 50-55 percent, said Mittal.
Speaking to CNBC-TV18, he said the commodity cost does not impact bottomline and topline.
He further said the company will start exporting to China shortly.
Below is the verbatim transcript of ML Mittal's interview to Prashant Nair & Sumaira Abidi.
Sumaira: It has been about eight months since you listed and the stock has seen a fabulous reception. Is there anything new that is happening – I know that you had promised that one of your plant would be coming on stream in December and I believe that is on track. How is business going, any impact of demonetisation?
A: Let me just briefly explain you, first of all a thank you to all the investors who have subscribed the initial public offering (IPO) and also team member who has created this world class facilities in the shortest period of time. It is a highly engineering industry which we set up at Chalisgaon. We promised that we will be setting up this engineering product company at Chalisgaon by December 2016 and we are very much on track and we are starting our production within few weeks. So that is one reasons why market or investors are following holding up and I believe that market sense very fast what is going on in the company.
Many companies promised, but they delay the project, but we are much on time. I also remember on October 18 I told your channel that we got Rs 25 crore orders which will be executed from our existing plant at Atgaon and Chalisgaon and we also bid Rs 50 crore of various tenders and let me confirm that in most of the orders we are L1 and those orders include not only domestic but exports, defence and very reputed customers in India. Once we receive the orders, we will definitely inform the stock exchange, but we are L1 in majority of the orders.
Prashant: When is the new capacity going to start producing?
A: We are starting within few weeks. We had promise December and we are much on time and we are starting shortly.
Prashant: We understand the capacity utilisation of the existing plant is under 50-55 percent, so what the need for this new capacity?
A: In existing capacity, most of the machines are almost 25-30 years old. We cannot go more than 50-60 percent capacity, a lot of problems are there and that is why we set up the new capacity which is German plant and Korean plant.
Prashant: Effectively you are operating at very high capacity?
A: Very high capacity existing one, but new plant we are confident the way we have put up the plant which is German and Korean which is one of the best plant in the world. In fact, I don’t have the confirm number, but this is one of the best plant in the world having all type of facility under one roof – so which is a factory within factory, which gives us value additions and we can be the most competitive price wise and quality wise.
For entire interview, watch accompanying video.