Vinod Juneja of Binani Cements told CNBC-TV18 that it has been an excellent quarter for Binani and they have increased capacity from 2.5 million metric tons to 6 million metric tons. He added that the company is going to raise USD 125 million through FCCB or external commercial borrowing.
Excerpts from the exclusive interview with Vinod Juneja:
Q: Quickly walk us through this quarter in terms of the pricing and the realizations?
A: As far as this quarter is concerned, it is an excellent quarter for Binani, we have increased our capacity from 2.5 million metric tons to 6 million metric tons. The real benefits our shareholders and every one will be getting basically from 2008-09.
So far all the things related to Binani Cement were being moved by the trucks or by the road, now 50% of that is being moved by the railways because we have got our own railway sliding.
So the main idea is that in this particular quarter and in this financial year ending March 31st 2008, Binani Cement results are going to be good results because we are going to make the best cement in the country and cement is fully sold in the market.
Whatever the price we were talking about in the additional capacity, which everyone has announced and various MoUs have been signed with the Madhya Pradesh, Rajasthan, etc. But the Greenfield project in cement will take minimum 2 years. You can’t start the cement immediately like hotel industry, as it will take little time to set up. But still I am sure that the results for the next 2 years will be excellent.
The earliest production we can look at that is additional capacity of about 99 million metric tones, which has been announced by the various manufacturers won’t come by immediately. But as far as the Binani Cement story goes, it’s not only in India, but it is going to be a Pan-Asia player.
Q: Today’s newspapers, there are reports that you are close to buy cement unit in Dubai, how are you planning to fund it, by when would this acquisition be complete, please give us more details on that?
A: As far as the Pan-Asia things in Binani Cement are concerned, we have already notified to BSE and NSE and our board of directors have approved in the 19th meeting that Binani Cement is going to raise USD 125 million through FCCB or external commercial borrowing although we haven’t finalized the instrument but surely USD 125 million will be raised.
As per the RBI regulations, this money will be essentially used for the over seas purpose. The first and most important thing, which we are going to do, is in China; we are going to expand the capacity.
Q: What do you hope to clock in the next quarter in terms of your revenue picture?
A: As far as revenue is being considered in the next quarter we are going to increase the total profits of the company as announced earlier and I am sure, it should be in the range of Rs 225-250 crore.
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