B.G. Jain, CMD, Nakoda Ltd completed his MBA in the year 1979 before joining Gujarat State Financial Corporation (GSFC). He also had a stint with Gujarat Industrial Investment Corporation (GIIC), before setting up his own maiden manufacturing outfit in the name and style of Nakoda Textile Industry Ltd. Babu Bhai has the uncanny knack of identifying and grabbing new business opportunities, as demonstrated by him time and again. He has grown Nakoda organically through expansions and diversifications and has not missed opportunities of inorganic growth either.
Nakoda, an ISO 9001 - 2008 company is one of the prominent players in the Polyester Filament Yarn Industry in the country. With the completion of its ongoing backward integration / expansion / forward integration project with a capital outlay of Rs 3.33bn, Nakoda has achieved a capacity of 1,40,000 MTPA.
Replying to Yash Ved of IIFL, B.G. Jain says, ”Nakoda plans to invest Rs. 19.35bn on its proposed Greenfield expansion plan.”
What are your expansion plans for FY13?
Nakoda Ltd is setting up a 2,80,000 MTPA plant, comprising of Continuous Polymerization, Direct Melt Spinning for the manufacture of POY and FDY in the denier range of 30 to 500, having 12 to 578 filaments in Bright, Semi-dull, Full-dull, Cationic and Dope-dyed yarns.
After the completion of the expansion project, Nakoda will be in a position to cater to the entire range of Polyester yarns in the domestic as well as international market. The project is estimated to cost Rs 19.35bn and is proposed to be financed by a mix of equity and internal resources and also the long terms debt. The proposed plant will located at Surat, Gujarat.
What is your current installed capacity?
Our existing installed capacities:
Continuous Polymerisation Plant
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140000 MTPA
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· FDY
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60000 MTPA
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· POY
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30000 MTPA
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· PET chips
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50000 MTPA
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Texturising
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30000 MTPA
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What are your global plans?
There is no plan on the table at the moment for the overseas markets. However, the management is open to any good opportunity and value for money proposal in India or abroad.
Comment on your capex plans?
Nakoda plans to invest Rs 19.35bn on its proposed Greenfield expansion plan, envisaging creation of integrated facilities for the manufacture of wide range of grey and dyed Polyester Filament Yarns (PFY) in the denier range of 32,500 and having 12 to 578 filaments in various lustures, at Mahuej, District, Surat in Gujarat.
What are your plans in power sector?
Gas Based Power Generation
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Existing
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22.00 MW
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Proposed
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10.00MW
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Coal Based Power Generation
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Proposed
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60.00 MW
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Wind Power (Existing)
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Tamilnadu
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6.75 MW
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Madhya Pradesh
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5.25 MW
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SSYPL
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Under implementation – 7.5 MW x 2
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15 MW
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Proposed
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10 MW
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Brief us about your financials?
The company saw an increase of 38.86% in Q4 FY12 revenue, to Rs. 6.26bn from Rs. 4.50bn during the same period for the last fiscal year. The profit after tax for the quarter ended March 31, 2012 stood at Rs. 144.2mn, resulting into an increase of 35.53%, as against Rs. 106.4mn in the corresponding period of the last fiscal. EBITDA rose by 32.18% from Rs 269.4mn to Rs 356.1mn during the quarter.
Income from the Manufacturing Segment rose by 95.24% to Rs. 4.57bn from Rs. 2.34bn for the quarter under consideration. In the trading segment, the sales stood at Rs. 1.68bn from Rs. 2.16bn.
The Company achieved total revenue of Rs. 21.38bn for the year 2011 and earned net profit of Rs. 494.2mn
The Board also recommended a dividend of Rs.0.25 per equity share of Rs.5 each equivalent to 5% on the paid up equity share capital of the Company for the year ended 31.12.2011.