Rhetan TMT के अगले 5 साल के ग्रोथ प्लान और कारोबार विस्तार पर MD Shalin Shah का Outlook

ET Now Swadesh

23 Sept 202406:30

Summary

TLDRIn this segment, Mr. Shaleen Shah, MD of Ton TMT Company, discusses the company's growth and business in manufacturing TMT bars and round bars. The company is based in Gujarat and has an annual turnover of around 125 crores with an IPO in August '22. They plan to set up a captive power plant near Ahmedabad to meet the energy needs of their factory. The discussion covers the company's revenue, profit margins, and future expansion plans, including increasing production capacity and the impact of government infrastructure focus on the TMT industry.

Takeaways

😀 The company, Ton TMT Company, specializes in manufacturing TMT bars and round bars for the construction industry.
📈 The company's annual turnover is expected to cross INR 125 crores, with a significant growth trajectory.
🏭 The company has an IPO in August 2022 and has recently set up a captive power plant to meet the energy requirements of their factory.
🌱 The power plant is expected to provide a substantial cost benefit, as the electricity expense will be reimbursed through the solar power plant.
🔍 The company's manufacturing capacity is currently 45,000 tons per annum and plans to scale up to 60,000 tons by the financial year 2025-2026.
💹 The company anticipates a minimum profit of INR 10 crores post-installation of the power plant, indicating a positive outlook for profitability.
🌐 Despite minor weaknesses in exports, the company's expectations for the steel industry and TMT sector remain optimistic, especially with government focus on infrastructure.
🛠️ The company sees no possibility of a downturn in the TMT industry due to continuous infrastructure development and government initiatives.
🌟 The company's expansion plans include increasing production capacity and is already underway with groundwork for implementation expected between March 2025 and March 2026.
♻️ The company's growth is intrinsically linked to the health of the steel industry, with a strong emphasis on infrastructure development driving demand for TMT bars.

Q & A

What is the primary business of the company mentioned in the script?
-The company primarily manufactures TMT bars and round bars in the steel industry.
What is the current manufacturing capacity of the company in terms of tons per annum?
-The company's current manufacturing capacity is 45,000 tons per annum.
What is the expected turnover for the company in the next financial year?
-The company expects to cross a turnover of 125 crores in the next financial year.
What is the company's plan regarding the installation of a power plant?
-The company is setting up a captive power plant with a capacity that will be used for the total power consumption at their factory.
Where is the company planning to set up the power plant?
-The power plant is planned to be set up near Ahmadabad, approximately 60 kilometers away, which will be fully utilized for the power requirements at their factory.
What is the company's expected profit after the installation of the power plant?
-The company expects a minimum of 10 crores in profit after the installation of the power plant.
How does the company view the current health of the steel industry, especially in exports?
-The script suggests that there might be a slight weakness in exports, but the company does not foresee any significant difficulties for the TMT industry in the next 3-5 years.
What is the company's expansion plan for the manufacturing capacity?
-The company plans to scale up its production from the current 45,000 tons per annum to 60,000 tons per annum by the financial year 2025-2026.
What are the company's expectations from the solar power plant mentioned in the script?
-The company expects that the expenses related to electricity will be offset by the solar power plant, as it will provide a full reimbursement of their power bill.
What is the company's view on the impact of government focus on infrastructure on the TMT industry?
-The company believes that as long as the government continues to focus on infrastructure development, the TMT industry, being a core industry, will not face any downturn.
What are the challenges the company faces in the TMT industry?
-The script implies that the company does not see any significant challenges or downturns in the TMT industry due to the government's focus on infrastructure development.

Outlines

00:00

🏭 Company Growth and Expansion

The first paragraph introduces a discussion with Mr. Shaleen Shah, the MD of a company named Ton TMT Company, which manufactures steel in the form of TMT bars and round bars. The company is based in Gujarat and has a manufacturing capacity of 45,000 tons with an expected turnover of Rs. 125 crores. They have recently completed an IPO in August 2022. The company is also planning to set up a captive power plant with the help of the Government of Gujarat, which will be utilized for total power consumption at their factory. The interviewee, Mr. Shah, is asked about the company's revenue, profit margins, and future projections for the next five years. The company expects to cross a top line of Rs. 125 crores in the next financial year with a minimum expectation of Rs. 10 crores in profit after the installation of the power plant. The summary of the financial figures for the years 2023 and 2024 is provided, showing a successful implementation of new plants. The discussion also includes the benefits and strength the company expects from its solar power plant in terms of electricity expenses and overall growth.

05:00

🌐 Industry Outlook and Challenges

The second paragraph discusses the health of the steel industry, particularly the TMT sector, and its future prospects. The interviewee mentions that the industry is closely tied to infrastructure development, and as long as the government focuses on infrastructure, the industry cannot衰退. The construction sector, which is a major consumer of TMT bars, will never stop growing. The government's full focus on infrastructure development, including roads, buildings, and dams, is seen as very positive for the steel and TMT industry. The interviewee expresses optimism about the future of the industry, with no signs of decline expected due to the government's continued focus on infrastructure. The conversation also briefly mentions the upcoming discussion about various stocks and sectors after a short break.

Mindmap

Keywords

💡TMT Bars

TMT Bars, or Tor Steel bars, are a type of steel rebar used in construction for reinforcement of concrete structures. They are characterized by their threaded ends which provide better grip and bonding with concrete. In the script, the company manufactures TMT bars, indicating their involvement in the construction materials industry. The discussion about the company's growth and manufacturing capabilities is centered around these TMT bars.

💡Round Bars

Round Bars are solid, round steel bars used in various applications such as construction, mechanical parts, and automotive industries. They are known for their strength and durability. The script mentions the company's production of round bars alongside TMT bars, showcasing the diversity in their steel manufacturing portfolio.

💡Manufacturing

Manufacturing refers to the process of creating finished goods from raw materials through manual labor or machinery. The script discusses the company's manufacturing capabilities, particularly in producing TMT and round bars, and their plans to expand these capabilities in the future.

💡Revenue

Revenue is the income generated from the sale of goods or services. In the context of the script, the discussion about the company's revenue is tied to their production and sales of steel products, specifically TMT bars and round bars. The company's growth and profitability are directly linked to their revenue figures.

💡Profitability

Profitability is the ability of a company to generate profit from its operations. It is a key indicator of a company's financial health. The script mentions the company's expectations for increased profitability, which is likely to be influenced by factors such as production efficiency, market demand, and pricing strategies.

💡Expansion

Expansion refers to the process of increasing the size or scope of a business. The script discusses the company's plans to expand its manufacturing capacity, which is a strategic move to increase production and potentially capture a larger market share.

💡Infrastructure Development

Infrastructure Development involves the construction and maintenance of public works and systems. The script highlights the importance of infrastructure development for the steel industry, as it drives demand for construction materials like TMT bars and round bars. The company's growth is positively influenced by government focus on infrastructure projects.

💡Government Focus

Government Focus refers to the priorities and initiatives set by the government, which can impact various industries. In the script, the company benefits from the government's focus on infrastructure development, which creates a favorable environment for the steel industry and the company's products.

💡Production Capacity

Production Capacity is the maximum output that a manufacturing plant can produce within a specific time period. The script mentions the company's current production capacity and its plans to increase it, which is a strategic move to meet growing demand and improve competitiveness.

💡Steel Industry

The Steel Industry is a major sector of the economy that involves the production of steel, a crucial raw material for construction, infrastructure, and various manufacturing processes. The script discusses the health of the steel industry, its challenges, and the company's position within it.

💡Export

Export refers to the shipment of goods produced in one country to another. The script briefly mentions a slight weakness in exports, which could be a challenge for the company's international sales and revenue generation.

Highlights

Introduction to TMT bar and round bar manufacturer, Ton TMT, and their business growth.

Company produces 45,000 tons of TMT bars annually, with an expected annual turnover crossing ₹125 crore.

Ton TMT had an IPO in August 2022 and signed an MoU with the Government of Gujarat for a captive power plant.

The upcoming power plant near Ahmedabad will be used to meet the energy requirements of the Kadi factory.

Revenue for FY25 is expected to surpass ₹125 crore, with profit projections of at least ₹10 crore post power plant installation.

FY23 recorded a top-line of ₹86 crore, whereas FY24 saw a slight dip to ₹65 crore due to plant installations.

The solar power plant is expected to cover 100% of the company’s electricity expenses.

The company's electricity expenses are one of the highest operational costs, which will be reduced by the new solar plant.

Ton TMT plans to increase production capacity from 45,000 tons to 60,000 tons per annum by FY26.

Government focus on infrastructure development is expected to boost the TMT industry in the coming years.

Despite challenges in steel exports, the domestic infrastructure focus will keep the TMT industry strong.

No slowdown is expected in the TMT industry as construction and infrastructure development continue to rise.

The solar power plant will further enhance the company’s profitability and sustainability.

Government initiatives in road building, dams, and other projects will drive the demand for TMT bars.

Ton TMT is well-positioned to capitalize on India's expanding infrastructure projects and government initiatives.