In an exclusive interview with Mr Srikumar Menon MD of BOC India spoke about the major gas supply order that the company has bagged. Below is a verbatim transcript of the exclusive interview with Mr Srikumar Menon on CNBC TV18.
Q - What exactly are these orders; could you give us some details?
A - BOC India now has orders from TATA Steel for supply of capital for their 7 million tonne to 10 million tonne expansion in Jamshedpur. We will be providing the gases for them through a long term agreement for over 20 years. I am not sure if that could be the reason why the stocks have moved. I have no idea why they have moved up. However, that certainly is the fact that we have this order.
Q - One reason could be that we hear you have also signed the long term agreement with companies like Moser Baer. Is that true, how large is it and does it involve any upfront payment?
A - Yes, we have signed a contract with Moser Baer but that is not the reason. That has been more than a year and that contract is ongoing, supplies are being made against that as we speak.
Q - Anything that has been signed recently in the past two weeks?
A - Yes, we have signed this TATA Steel contract, not in the last two weeks but in the last month. We also signed a contract with another glass manufacturer in the Western region that is going to be a 15 year contract as well.
Q - How substantial are these orders both with TATA Steel and the glass manufacturer and how much are they adding to your existing order book?
A - The TATA Steel order is of course huge. It is probably the largest that BOC India has signed in its 75 years of existence. It was significant investment almost to the tune of about INR 600 crore to INR 650 crore and will add about INR 3 crore to INR 4 crore to the topline when the production commences end of 2011 or early 2012.
Q. So that would be augmenting your existing order book by how much in terms of percentage? What is your current order book at?
A - The last year we closed the year with a turnover of about INR 560 crore, and hopefully, this year if everything goes well and the way we plan it should be in that region. The turnover as of October is about INR 560 crore. So you can add that percentage what the growth might be. This will add about INR 300 crore to that INR 350 crore, so in percentage terms I would think about 30% to 33%.
(Sourced from CNBC-TV18)
