Meghmani Organics eyes sales target of Rs 1200 cr for FY12

Meghmani Organics announced its fourth quarter results for the January to March period a couple of days back. The Pesticide manufacturer reported a loss of Rs 2.99 crores for the quarter ended March 31, 2011 versus Rs 12.14 crores for the quarter ended March 31, 2010.

Moreover, a closure notice showed by Gujarat Pollution Control Board (GPCB) to its pigment plant in Panoli has also become a matter of concern for the company since this negative news flow has affected its stock, dragging it down to a 52-week low of around Rs 10.

Speaking to CNBC-TV18, Ashish Soparkar, managing director of Meghmani Organics, said that the Panoli plant is fully operational and the company hopes that the board and government will take positive action in the coming week, giving a green signal to the plant operations.

Talking about the company’s sales target for FY12, Soparkar said, “We believe that our sales should cross Rs 1200 crore for FY12 and whatever the effect of a Pollution Control Board, we will come out stronger and more reliable and dependable to our customers.”

Below is a verbatim transcript of Ashish Soparkar’s interview with CNBC-TV18’s Ekta Batra.

Q: I will start with this Gujarat Pollution Control Board (GPCB) which had issued a closure notice on one of the company’s units sometime back. Can you give us an update on where things stand currently?

A: The board gave a closure notice to our Panoli plant which is now fully operational. So, it is a history now. The file has moved to the highest level and we believe that the board and the government will take positive action in the coming week.

Q: Can you tell us how much the unit actually contributes to your total revenue?

A: Both the sides together contribute around 35-40% of our revenue, but as I already said Panoli site is fully operational and there is no issue now and we have on the contrary much ahead of our competitors in installing certain pollution control measures, which are even praised by Gujarat Pollution Control Board.

Q: How are you doing in terms of exports and can you just break-up your targets for FY12?

A: We are generally exporting 65-70% of our production. We believe that we will be doing 65-70% of our sales this year and we export those sales to overseas market. We are very shortly starting a unit at the hedge which is in a special economic zone and that should give us around 20-25% additional sales which as the name says special economic zone 100% export.

Q: In FY11, you completed around Rs 1000 crore in terms of sales. What are you targeting in FY12 and if we could see any sentimental impact from this entire Pollution Control Board issue?

A: We believe that our sales should cross Rs 1200 crore in this year and whatever the effect of a Pollution Control Board, we will come out stronger and more reliable and dependable to our customers.

Source: Money Control