Management Interviews – M&M, CCL Products, Take Solutions, Mahindra Life, Motherson Sumi, Bajaj Electricals

M&M – Tractor & Farm Equipment Division

  • Q1 growth will be in mid teens, annual growth will be at 8-10% and hence demand shall get subdued going forward in the year
  • Growth last year was on low base, as we get in H2 of this year, base will be higher
  • Last year 37% of revenues came from global businesses
  • We lead the prices in the industry. Last price increase was in march timeframe
  • Will look at prices again in July – August
  • In next 5 years we aim 50% from global revenue against 37% now
  • Levers to growth will be
    1. Shift from Tractor to Farm Machinery
    2. Global strategy – Global business growth
    3. Creating new technologies
    4. Managing costs

Full Interview :

https://www.youtube.com/watch?v=ESEMGS4inI0

 

CCL Products

  • New plant coming online at end of this FY
  • If we receive customers approval in time we can reach upto 20% growth or else it stays in range of 10-20%
  • Ours is not a commodity based business, we supply to brands and brand owners. So change in coffee prices does not impact our business materially
  • Revenue growth is not a correct indicator for us, as revenue figures are based on tea / coffee prices which have fallen 15-20% from last year which automatically means proportionate decrease in topline
  • 70% of production cost is raw material itself, so significant impact will be seen in topline
  • Bottomline will give you better indicator because as volumes increase bottom line is also increasing
  • US consumes 80k tonne of instant coffee, japan consumes 25k tonne, We in India consume only 10-15k tonne. India is growing at 15-20% YoY
  • Our focus will be on new products where we see larger potential of growth
  • Last year we achieved 46 crs in domestic market, this year we are projecting 100 crs based on our Q1 performance

Full Interview :

https://www.youtube.com/watch?v=YvM3VW_83jY

 

Take Solutions

  • Looking at organic growth rate of 23-24%
  • Strong order book which stands at 190 million $ as on 31st March
  • Last 12 quarters, Lifescience business have grown at 8.5% CAGR QoQ
  • Going through acquisition route in clinical research business in USA
  • We have cash of 350 crs on B/S
  • We are seeing account led growth from existing customers which is giving us higher revenues
  • Our aspiration is to do 500-600 mn $ in revenues in three years and we are currently at 246 mn $
  • depreciation does not impact us much as we earn in $ we also spend much in $

Full Interview :

https://www.youtube.com/watch?v=GTXtGB3yqS8

 

Mahindra Life

  • Commences new project ‘Roots’ at Kandivali East in Mumbai
  • Sub 1 acre project – 1.42 L sq ft saleable area
  • Sub 200 crs of revenue potential from this project
  • 1 project going on in NCR, 1 in Bangalore, 1 in Pune, 1 in Hyderabad and 1 in Chennai
  • Evaluating the impact of Accounting Std changes on Financials
  • Will see few launches in Mumbai and Out of Mumbai in this year

Full Interview :

https://www.youtube.com/watch?v=TOppO0KIMdI

 

Motherson Sumi

  • 3 new greenfield sights will add as by 2019-2020 it will add a billion USD to topline
  • This seems to be the last plant for the order book of 17.2 billion
  • Acquisitions will make much of a impact on to the topline, we are sitting at 12.5-13 billion, will go to 18 billion for motherson sumi
  • We have a huge pipeline for acquistion, we are negotiating
  • Hungarian and other plants will come to full capacity in 2018 end or Q1 2019

Full Interview ;

https://www.youtube.com/watch?v=i5dKTRNL-9U

 

Bajaj Electrical

  • Margins are very competitive in government orders, from industry point of view its not a money making situatuion for us as tender prices are very low
  • 1st acquisition for Bajaj Electricals – 80% shares will be acquired in NIRLEP and subsequently 100%
  • NIRLEP’s last year turnover was 60 crs and clients like IKEA, Future group. Turnover in current year should cross 80 crs
  • NIRLEP is not profitable as of now

Full Interview :

https://www.youtube.com/watch?v=nrdpwGOyKi0&feature=youtu.be

 

 

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