Tell us about the various product categories that you have presence in.
Vectus Industries is primarily involved in manufacturing of PPR Piping Systems, CPVC Piping Systems, PVC Pressure Piping, Multi-Layer Composite Piping System, SWR Piping Systems, Rotational Moulded & Blow Moulded Water Tanks, Polyethylene Manholes & underground water tanks and various kinds of plastic moulded articles for agricultural and household purposes.
What was your annual turnover in the last FY and what are your projections for the current fiscal? What kind of growth are you looking at in the next two years?
The performance of FY16 was slightly subdued due to overall sluggish market and economic conditions. Still, the total net turnover of Vectus Industries Limited was Rs.555 crore in FY16.
The Company is highly optimistic for its growth in FY17 and in anticipation we have also added new capacities in pipe and water tanks at Gwalior, Trichy and Rajasthan. Vectus Industries aims to achieve net sales of Rs.700 core in FY17. For the next two year, the sales growth of the company is expected to be in the range of 22-23 percent p.a.
The ‘Pradhan Mantri Krishi Sinchayee Yojana' (PMKSY) will have an outlay of a whopping Rs.50,000 crore over a period of five years (2015-16 to 2019-20) for various irrigation projects. What does this mean for companies like Vectus Industries?
The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) will undoubtedly provide major boost to various irrigation projects for the growth of agriculture sector which will further provide significant push to Agri Pipes segment. Though Agri Solution was also a part of our portfolio, Vectus Industries has been primarily in plumbing solutions. In 2015, the Company had set up a new PVC piping capacity at Gwalior which would manufacture Agri pipes, column and casing pipes.
Currently, what is the respective size of the pipes and fittings market and the water tank market in the country? How much would be your share in each of these markets?
Both these segments are highly fragmented as majority is in the unorganised sector. In the water storage tanks segment, Vectus is the second largest national leader with 6-10 percent of the total market which includes both organised and unorganised sectors. In the pipes segment, with 1-2 percent share of the overall market, Vectus is one of the fastest growing pipes manufacturers.
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