There is a cabinet meet today to discuss a change in the urea subsidy policy.
Even after passing on the benefit of lower input costs, Zuari Agro Chemicals MD & Group CEO Kapil Mehan expects improvement in margins due to better demand and working capital cost management.
The company's inventory, which has remained piled up from last year owing to a fall in demand, will find a market now, says Kapil Mehan, MD & Group CEO.
Kapil Mehan, MD & Group CEO of Zuari Agro Chemicals says the subsidy payment will ease off some pressure as total borrowings have risen to almost Rs 3000 crore.
Kapil Mehan, MD & Group CEO, Zuari Agro Chemicals says that if the government does not pay arrears this year, then it could go upto Rs 45,000 crore by March-end.
Speaking to CNBC-TV18, Kapil Mehan, MD & group CEO of Zuari Agro Chemicals says that the move will improve cash flows of companies.
It will have a positive impact on interest costs as our subsidy comes down to that extent, and also our cash flow for buying raw materials also comes down, Kapil Mehan of Zurai Agro said, adding that it was a marginal positive for the fertiliser industry in general
Kapil Mehan, MD and Group CEO, Zuari Agro Chemicals, gave his views on the company's performance during the monsoon season, especially given the monsoon deficiency.
Through this open offer, Zuari has raised its stake in Mangalore Chemicals to 53.03 percent.
According to Kapil Mehan of Zuari Agro Chem with gas pooling the cost of gas is likely to go down to USD 11-12 per mmBtu.
Speaking to CNBC-TV18, Poddar, who holds over 16 percent in MCF, said that he consulted Mallya before buying the stake. Mallya, had then agreed with Poddar that he would enter into a joint venture with Zuari.
Suresh Krishnan, MD of Zuari Industries spoke to CNBC-TV18 regarding the urea investment policy and how the issue of gas supply shortage is yet to be resolved