PVC pipes and transmission towers maker Skipper Ltd inaugrated its PVC plant in Guwahati, Assam on Monday.
This is the company's third plant after Kolkata and Ahmedabad and has a production capacity of 29000 metric tonne.
Speaking to CNBC-TV18, Sharan Bansal, Director, Skipper said that the units in Hyderabad and Secunderabad will be commissioned next year and the company aims at a 100 percent revenue growth to Rs 200 crore in FY16.
Below is the transcript of Sharan Bansal’s interview with CNBC-TV18's Nigel D'Souza and Reema Tendulkar.
Nigel: Your BSE announcement says that there is some capacity that has come on stream. Could you give us some details, what kind of capacity utilisation levels are you looking at for the next couple of months and when can we see 100 percent capacity utilisations, also give us some guidance in terms of revenues that we are going to get from this added capacity?
A: Yesterday we inaugurated our Guwahati Polyvinyl chloride (PVC) plant. This is our third capacity for PVC products after Kolkata and Ahmedabad and now the combined capacity of the company stands at 29,000 tonnes. This is in line with our overall capacity drive to take our capacity up to 100,000 tonnes over the next four years. As I had mentioned before all of this capacity is being built on the asset light model.
In terms of utilisation last year we only had Kolkata capacity which we had achieved full capacity, 100 percent utilisation there. This year because of the new plants coming up in four new locations, Ahmedabad and Guwahati which have already started and Hyderabad and Secunderabad which are going to start in the later part of the year we expect capacity utilisation in the new plant to be lower in the first year but by next year they should be achieving close to around 100 percent capacity utilisation as well.
Reema: Can you tell us then with your enhanced capacity what would be the revenues of the company in FY16 as well as FY17 because a couple of your other projects will come on stream only next year?
A: In terms of the revenue growth in the PVC division we are expecting a comfortable 100 percent growth in the revenue here. So, our sales of Rs 100 crore definitely we should be crossing looking at Rs 200 crore plus this year and we look at close to 100 percent growth every year for the next three years here.
Nigel: There is so much of talk about anti-dumping duty coming in, maybe Minimum Reserve Price coming in for steel. You import long products. Have you factored any kind of negative impact, if in fact there is a case there is that minimum import price that comes in?
A: Not really because our products are mostly long steel products and the anti-dumping as of now has only been levied on certain classes of steel products. So, that has no impact on our raw material pricing and in fact we don't expect at all government to levy kind of long products because that has a direct bearing on construction and as well as on inflation.
