Amarpal Sethi, Chairman and Managing Director, Pix Transmission Ltd has vast experience of more than 3 decades. He has done Science graduate from Bombay University and joined family’s business in auto parts at an early age. He has an overall experience of about 36 years in business. He controls the company’s affairs on a day to day basis.
Pix Transmissions Limited is one of the emerging Global Leader in Power & Fluid Transmission Business. Pix is engaged in manufacturing of Industrial, Agricultural & Automotive Belts, High Pressure braided and spiral Hydraulic Hoses as well as Hose Assemblies and End Fittings. The company manufactures entire range of V-Belts in several constructions such as Wrap, Cut Edge, Ribbed / Poly, Synchronous / Timing and application specific: special construction belts such as Double Cogg, Double Poly, Poly + Timing, Honey Comb, PT-0, PT-6, PT-7, 2TP Belts, Variable Speed Belts, Elasticated Belts, Banded Belts, Kevlar Cord Belts, Antistatic Oil and Heat Resistant Belts, Dry Cover Belts and many more.Hoses have different ranges from 2 wires to 6 wires reinforcements depending upon the user industry like Infrastructure, Agriculture, Oil and Gas, Mining and Marine where automation is the key.
Speaking with Yash Ved of IIFL, We are planning to raise Rs200-300mn for expanding manufacturing facilities."
What is the outlook of the industry?
Geographically, the industry has to see the emergence of the Russia, India and China which has been growth driver of the industry. The investment has been in infrastructure so far in terms of establishment. We are able to cater to the high technology market. There has been onsolidation happening in the industry. There has been flux in the market domestically and globally.
Any fund raising plan?
We have sufficient capex over the years. We might do some kind of equity placement but at the same time , the equity dilution is not so big. Last year our capex expenditure plan was Rs.900mn. We are planning to raise Rs200-300mn for expanding manufacturing facilities, after a consolidation this FY 10-11 which will gear the company for further growth in FY 12-13.
Could u tell us about your geographic business?
The company has subsidiaries and Joint Ventures in UK, Ireland, Germany, Middle East, UAE,China and Brazil who provide after sales and technical support. We are planning to expand business in China, Malaysia, Australia and US where there are lot of mining activities. We see more opportunities in Venezuela as well.
Comment on your R&D facility?
The Company has its own in-house State of the Art R&D wing located at Bazargaon Plant,Nagpur equipped with latest hi-tech equipment and machinery.
Plant I: Hingna MIDC - Spread over 9 Acres of Land, Industrial & Agricultural Belt Unit,
Plant II: Bazargaon spread over 27 Acres of Land, Automotive Belts, Timing Belts,Hydraulic, Hoses, Hose Assemblies and End Fittings.
Plant III: Nagalwadi, Spread over 6 Acres of Land, recent Automated Carbon Mixing Plant.
There are the two companies which manufactures Belts and Hoses as a Product Synergy. Gates Corporation, a MNC is one. Pix Transmissions is the other in the industry though there are other players individually in Belts and Hoses.
Please brief us about your Belts and Hoses business?
The company manufactures entire range of Industrial, Agricultural and Automotive Belts with present capacity of 16 mn. It has more than 10000 sizes of Belts to cater customer needs. Pix started manufacturing of Timing Belts, High on Value Chain in the last two years. It has a market share of around 35% in India equally with Fenner India Ltd. It has huge potential due to repeat orders and the growth of User Industries.
The company also manufactures wide range of High Pressure braided and spiral Hoses with Present Capacity of 18 mn. The end user Industries are Infrastructure, Agriculture, Oil & Gas, Mining and Marine. Pix has recently added the high end Rigid Mandrel 6 ply Hoses with 62 metres long and 100 cm Dia, High on Value Chain product only few selected companies in the world to make such products and PIX is only one in India. Currently Pix has a market share of 15% in the Hydraulic segment with MNCs like Gates and Parker in the arena. Pix’s End user industries are growing at a faster pace which will result in Huge demand from user industries abroad with high potential in the domestic market
Your revenue mix in percentage terms?
The company current exports its products to over 65 countries on channel and distribution centre. 60% of the revenue comes from export market while remaining 40% of revenue comes from domestic market.
Brief us about your financials?
The company has a turnover of Rs1791.87 mn in the FY10 with the EBITDA margin of 20.13%.It is expecting to achieve around Rs2600mn topline in financial year 2010-11 and Rs3500 mn in 2011-12. The EBITDA margin will go up beyond 22% with revenues coming in from the High Value items like Timing Belts and High Pressure Hoses.
Your promoter holding?
Our promoter holding stands at 55%
What’s your employee strength? Any hiring are you looking at?
We have about 1500 employees and have entered into a pact with the labour for increase in the productivity by 10%. We might hire another 10% skilled workers more for FY12 depending on the substantial growth expected by us.