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Polymechplast Machines Ltd.: Experts' corner
526043 POLYCHMP Group (T) BSE data
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Management speaks
K R Bhuva
K R Bhuva
Chairman & Managing Director
Polymechplast Machines Ltd.
December 1, 2010, 11:42 am
Why should an investor buy your company's stock?

Polymechplast Machines Ltd (PML) is a very important manufacturer of plastic injection and blow-moulding machines for the domestic and export markets. As a result of years of hard work, we have developed in-house technology of international standards and cost efficiency, excellent after-sales services in Indian metros, and modern and efficient infrastructure. Further, we are expanding to meet future projections.

There is tremendous scope in the Indian plastic industry, since our per capita plastic use is well below 10% of that in developed countries. The Indian plastics industry is growing at over 12% and the supply of quality local moulding machines is well below the requirement. Today, local producers make 4,500 injection moulding machines while the requirement is double that, with the gap being filled by imports. In the next five years, this requirement may go up to 12,000-15,000 machines. We see great scope for our company and are ready to accept the challenges and meet future requirements.

Until now, the company has produced machines with a capacity of up to 450 tonnes. We are now focusing on bigger-capacity machines to meet the demands of larger companies. Thus, the company expects a high volume of business and profitability in the years to come.

During the past three years, the company’s monthly production capacity has been increasing gradually. We have done this by modernizing our production facilities and empowering key vendors to produce large quantities of components with the desired quality. This has led to continuous improvement in product quality and acceptability of ‘Gold Coin’ machines by major plastic processors in India and the global market.

Last year, we made 159 machines. In the first half of this year, we made 107 machines and we expect to produce 220-240 by the end of the year. We’d like to make 500-plus machines and those of bigger sizes (up to 1,000 tonnes) in the next five years.

The company has been making profits for the past couple of years. The future looks very promising in terms of growth and profitability, and we feel our company is a good investment.

What events do you expect in your industry sector over the next few months? Are these hurdles or catalysts?

The following events can strengthen our performance and act as catalysts:

  • Plastivision 2011 International Plastic Exhibition in January 2011 in Mumbai
  • Recently updated infrastructure and our continued move forward.
  • Growth of the auto industry, and the need for more machines.
  • Accelerated production, reduced delivery time.
  • Production of bigger machines, with wider market potential.
  • Recent participation in a plastic exhibition in Nigeria, West Africa, to reinforce the export market.
  • Anti-dumping duty on Chinese machines, which has empowered Indian manufacturers.
  •  Aggressive and targeted marketing efforts.
  • The company is focusing on building up its corporate image and the brand value of its products.
What growth initiatives has your company planned?

Looking at the growing requirement of quality and high-tech machines, we are modernising and updating infrastructure in stages.

We are buying our own premises in Mumbai, Delhi, Kolkata and Bangalore to strengthen marketing and services.

We are developing high-tech large size machines with a capacity of up to 1,000 tonnes to cater to all sorts of markets.

We are open to the option of to joining hands companies of international repute with a long and successful history.

We have purchased 200,000 sq ft of land on NH 8, 17 km from our existing factory at Vadodara for future expansion and growth.

We are taking all measures to improve quality and production. We are working on a system to deliver machines ex-stock.

Who is your competition? What differentiates you from them?

Amongst these competitors, PML has grown from scratch in a span of 36 years. The company has constantly upgraded product technologies and improved quality, increasing the acceptability of ‘Gold Coin’ brand machines in the market against those of competitors.

We offer complete turnkey projects by supporting the customer from the raw stage to the end application, unlike large corporate groups, who do not pay attention to individual needs. We are easily approachable to customers and can answer any kind of query.

We make products technically compatible by having tie-ups with common key vendors; at the same time, our machines are more economic than those of competitors.

‘Gold Coin’ brand machines are widely acceptable in all classes of the market, unlike competitors, who sell to specific segments.

How do you see your company performing over the next financial year?

Considering current year sales of 220-240 machines, we expect to sell 300-325 in the next financial year, a growth around 25-35%. This performance can be achieved by producing more machines or increasing value by selling bigger tonnage machines in the next financial year.