Mr Kailash Agarwal co founder and MD of Varun Industries Limited anticipating a huge business opportunity in exports, in the year 1989, he commenced the business of exporting stainless steel utensils, kitchenware and cutlery items. Since then there has been no looking back for him. His hard work, honesty and dedication paved the way to create 100% export oriented unit that was named Varun Continental Limited in the year 1995.
Varun Industries Limited has evolved from being India's leading steel ware exporter to a highly proactive multi dimensional global conglomerate with business interests that include steel ware and steel raw materials, oil & natural gas, wind energy, uranium, mining and gems & jewellery. Established in 1989 as a small trading house it was incorporated as Varun Continental Limited in March 1996 and changed to Varun Industries Limited in April 2005. An ISO 9001: 2008 company, Varun was listed in November 2007 on both the Bombay Stock Exchange and the National Stock Exchange.
Replying to Mr Anurag More of India Infoline Limited, Mr Kailash Agarwal said that "We intend to set up stainless steel manufacturing factories at Vasai, Jodhpur and in Karnataka."
Here is the excerpt from the interview with Mr Anurag More of India Infoline Limited:
Q - Brief us about your product portfolio and market share?
A - We are primarily a manufacture Steel and Stainless steel utensils catering to the domestic High end customer base in India and other countries as well. Our product profile includes steel and steel utensils for exports and domestic high end.
We are also into trading cum exports of precious and semi precious stones cum jewellery. Other diversified businesses include wind power, iron ore mining and oil field services. We export to more than 80 countries globally.
Q - How do you see demand for gems and jewellery?
A - The demand in this segment has been very good. As we are primarily into exports and not into the domestic market, we are constrained to provide any data on the domestic jewellery business. However, we are seeing robust overseas demand.
Q - Brief us about your expansion plans? How will you raise money for it?
A - We are planning to expand by going for a backward integration. We intend to set up stainless steel manufacturing plants at Vasai, Jodhpur and in Karnataka.
The plans for these factories are under preparation. We intend to fund these expansions through internal accruals plus a mix of debt and equity. We have not firmed up anything as of now.
Q - What is the outlook for FY11 and year after that?
A - We do not give any forward looking statements. Having said that we are seeing good growth in both revenues and profitability.
Q - Tell us about your revenue mix (domestic and international)?
A - We are primarily into exports. So bulk of our revenue is generated from exports. We do have some domestic sales. About 80%+ would be exports and around 16% would be domestic sales.
(Sourced from www.indiainfoline.com)
