Meghmani Organics says it expects to grow topline by 15% in FY20
With the US government terminating preferential trade status for India under generalised system of preferences, Indian exports worth USD 5.6 billion are set to be impacted. Ashish Soparkar, MD of Meghmani Organics discussed its likely impact on the company as well as detailed their expansion plans.
With the US government terminating preferential trade status for India under generalised system of preferences, Indian exports worth USD 5.6 billion are set to be impacted. Ashish Soparkar, MD of Meghmani Organics discussed its likely impact on the company as well as detailed their expansion plans.
In rupee terms, Meghmani is exporting around Rs 150-200 crore to the USA and most of its products compete with China, said Soparkar. Twenty percent of the company's revenue is from the US and we don’t think there will be any impact at all of US tariff preferential removal, he said.
In terms of prices, he added, “We maintain our prices. American customer will pay for the duty. We are mostly fighting with Chinese companies and Chinese companies are under severe pressure of much higher duty structure.”
On revenue target, Soparkar said, “We believe that we will grow by at least 15 percent or even higher in FY20. Going forward, we are looking for Rs 3,000 crore of topline in one to one and a half years’ time, in FY21. We will continue to have the same EBITDA margin.”
Speaking about the expansion, he further mentioned, “We have planned for three-four projects, they all are going to happen in coming four-five months. The debt is already in the book. We are going to use around Rs 800-900 crore for expansion. The debt is almost at the peak level now. There wouldn’t be any additional borrowing.”
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