videos | IST

Exxaro Tiles targets 20% turnover from exports in next 4-5 years

Himanshu Shah, CFO at Exxaro Tiles, in an interview with CNBC-TV18, said the company was targeting 20 percent of its turnover from exports in the next 4-5 years.

Himanshu Shah, CFO at Exxaro Tiles, in an interview with CNBC-TV18, said the company was targeting 20 percent of its turnover from exports in the next 4-5 years.
The vitrified tiles maker’s initial public offer (IPO) was fully subscribed on Wednesday, the first day of the bidding process. The IPO has opened for subscription on Wednesday and will end on Friday, August 6. The company is expected to raise Rs 161 crore through the issue. For the public offering, the Gujarat-based company has fixed a price range of Rs 118-120 per share.
“In our existing business model, around 86 percent is domestic market and the remaining 14 percent of our topline is export. We are targeting 20 percent from exports from the coming turnover and remaining will be our domestic market as we are stronger in the domestic market,” Shah said.
On IPO, he said, “We are targeting total Rs 160 crore. Our main objective, from this IPO proceed, is to pay our existing long-term debt of around Rs 50 crore and the remaining is for the working capital requirement for the future growth and general corporate purpose.”
On growth, Shah said, “Our plants are running at almost 25 percent capacity utilization and we are running at almost Rs 32-33 crore per month on average. So, this year also we have a good run rate as far as the growth is concerned and in the next 3-4 years, we are also targeting 4-5 times from the current level (current revenue at Rs 250 crore.”
“We expect to go to Rs 1,000-1,250 crore in the next 4-5 years aided by capacity expansion) because we are also getting more capacities in the Morbi cluster by adding some new products in vitrified wall, parking and outdoor tile segments in our product basket.”
For more details, watch the video