homemarket Newsstocks NewsRajratan Global Wire rallies after receiving Chennai plant capacity expansion approval
Rajratan Global Wire rallies after receiving Chennai plant capacity expansion approval
Rajratan Global Wire has got a go-ahead for the expansion of its Chennai plant. The company's stock has rallied 13 percent today, is up 30 percent in the past month and has shot up a whopping 180 percent in the past six.
Rajratan Global Wire has received all approvals from the Tamil Nadu government for its Chennai plant capacity expansion. The company plans to channel the production from here for boosting its exports. The company's stock is up 30 percent in the past month and has shot up a whopping 180 percent in the past six.
Sunil Chordia, Chairman and Managing Director of the company discussed the road ahead for the company in an interview with CNBC-TV18.
The company delivered a healthy set in the first quarter of this financial year with a robust uptick in margins and sales volumes.
“Logistic costs are also coming down, which is good for all the businesses. We are looking at exporting more from India. Our plan is to export at least 50 percent production from our Chennai factory,” Chordia said.
The capacity ramp-up should play out from next year for the company when it will have a total of almost 1,80,000 tonne in overall capacity – 1,20,000 tonne in India and 60,000 tonne in Thailand.
The Chennai project will be completed by end of March 2023 and the capacity will be available for the entire next financial year.
“Chennai project will start some production by end of this financial year. So Chennai capacity will be available for next financial year. “Next year we will increase some utilization in Thailand and Chennai will start. So that should add to our sales,” he said.
The company expects to grow at 20 percent compounded annual growth rate (CAGR)
“I am very confident of 20 percent CAGR growth in volume for next four-five years. We are working on that. Also, we will grow by 20 percent in volumes this year,” he said.
For the full interview, watch the accompanying video
(Edited by : Abhishek Jha)
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