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V Guard Industries expects turnover of Rs 450 crore in FY 2009-10

19 Dec 2008

V-Guard Industries, a leading electrical solutions provider has announced that its new cable unit at Coimbatore has started trial production and will commence commercial production in mid January 2009. Similarly the company expects its second new cable unit at Kashipur in Uttaranchal to commence trial production in Mid Jan 2009 and commercial production by end of the current fiscal.  The two manufacturing units for LT Power and household cable set up with a cost of Rs 45.25 crore will have and installed capacity to process 3000 metric tonnes of Aluminum and 300 metric tonnes of Copper per annum. 

 

The company expects its new Coimbatore factory to generate a turnover of Rs 150 crore per annum while the Kashipur plant is capable of raking in Rs 140 crore in value. However no significant revenue can be expected from these two plant in current fiscal (ending March 2009), considering only one and half month operation in Coimbatore, and also time required to stabilize operations.  The company that has clocked a sales growth of 23% in first half ended Sep 2008 but now expects a revenue growth of 20% for current fiscal.

 

The company’s cables division is carrying a high cost inventory to the tune of two and half month requirement and that is expected to be exhausted by Jan ’09 end allowing the margin to improve in the fourth quarter.   With full benefit of the expansions coming, the company expects a turnover of Rs 450 crore in FY 2010crackcrack
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