Everest Industries sees Rs 1,000 cr sales by 2010

MUMBAI: Upbeat on the prospects of its newly introduced division of steel building solutions, Everest Industries Ltd, a Rs 300 crore company, is targeting Rs 1,000 crore in sales by 2010.

The company is also planning to commission two new manufacturing facilities in two years.

Everest Industries Ltd is an integrated building solutions company which has organically evolved over a period of time from a roofing company to an integrated building solutions company, as it stands today. And now it has diversified into a rapidly growing sector of steel buildings.

Manish Sanghi, executive director, Everest Industries Ltd, said: “We are on the verge of an explosive growth. The steel building sector is at a very nascent stage and is expected to grow at the rate of 100% per annum for the next five years.”

He said gradually traditional building methods would reduce and more and more people will go for steel buildings.

Keeping this in mind, Everest Industries announced a foray into steel building in 2006 when it announced building a new facility at Roorkee.

“This is the company’s latest greenfiled venture which will be commissioned soon. Once it is up and running, we will be well positioned to enter the sector and take big orders,” he said.

Sanghi said capacity of the new plant is 40,000 metric tonnes and has been built with an investment of Rs 110 crore. Apart from rolling out customised steel buildings, it also has three more manufacturing facilities which manufacture corrugated cement roofs, cement boards and solid walls.

Sanghi said the plant would manufacture two products under the steel building division - pre-engineered steel buildings and smart steel buildings. He said with huge growth potentials anticipated, the company is aware of the fact that with a capacity of 40,000 tonnes of steel buildings a year will not give it the required leverage to take on the biggies who are entering the sector.

“There are several domestic and foreign companies that have shown interest in entering the sector. Therefore, to capture a substantial market share, Everest Industries needs to have the strength of volumes, apart from providing value additions,” he said.

He said the company would soon announce two more facilities which will be a minimum of 40,000 tonnes each. The company also provides design and project erection consultancy and service as a value addition to its products.

He said the steel-building division is expected to contribute almost 50% to its total revenues by 2010. The rest will be contributed by its traditional products.

“We expect rural India to drive the growth in our topline and bottom line for our traditional products,” Sanghi said.

There is always a roofing hierarchy and the rural sector will replicate what the urban sector did couple of years ago. He said the rural sector contributes 50% to its total revenues.

The company also sees exports as one of the fastest growing segments of the company. Currently the company is exporting its product in countries where the market is already captured by established domestic players. Last year we had exports to the tune of Rs 20 crore and it will go up to approximately Rs 60 crore in three years.

Every company eyes growth and Everest is no different.

“We are expecting 25% annual growth rate and have has kept our options open as far as inorganic growth opportunities are concerned,” said Sanghi.

Including the Roorkee plant, Everest Industries has five manufacturing plants operational in the country with a presence in almost every region.