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Edited Excerpts
Firstly, how excited or nervous are you about the IPO. Are you confident that it will sit well with investors in the current market conditions?
Krishna Dushyant Rana: The anticipation of Platinum Industries’ IPO certainly brings a mix of eagerness and excitement, but above all, there’s a strong confidence in its success. We have meticulously analyzed the market conditions and believe that our solid growth trajectory, commitment to innovation, and sustainability make us an attractive proposition for investors. We are optimistic about the reception from the investment community.You are operating out of a single manufacturing facility which is located at Palghar, Maharashtra. Any plans on setting up new facilities to increase the production capacity?
Krishna Dushyant Rana: Yes. In response to the evolving demands of both the domestic and international markets, Platinum Industries is embarking on an ambitious global expansion plan. We are in the process of setting up two new manufacturing facilities to significantly bolster our production capacity and product offerings.
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The first facility, located in Egypt, is strategically positioned to serve as a hub for our international market operations while also catering to the local Egyptian market. This expansion is not just about increasing our geographical footprint; it is about bringing our high-quality products closer to our customers globally, enhancing our supply chain efficiency, and tapping into new growth opportunities in the Middle East and Africa.
Simultaneously, we are also planning to launch a greenfield project in Palghar, close to our existing facility focused on the production of lead-free stabilizers and associated products. This move is in line with our commitment to sustainability and innovation, ensuring that we not only meet but exceed environmental standards. The new facility in Palghar plant represents our dedication to pioneering safer, eco-friendly alternatives in the industry.
Both these projects are pivotal to our growth strategy, enabling us to meet the increasing demand, diversify our product portfolio, and solidify our commitment to sustainability. These expansions reflect our proactive approach to addressing market needs and our vision for a sustainable future in manufacturing.
The company has recorded solid financial growth from FY20-23 with revenue growing at a CAGR of 48% and margins improving significantly. How do you plan on sustaining these numbers?
Krishna Dushyant Rana: Our financial performance from FY20-23 is a testament to Platinum Industries’ strategic foresight and operational excellence.
To sustain and build upon these numbers, we are adopting a multi-faceted strategy. Firstly, we are doubling down on innovation. Our R&D efforts are geared towards developing new products and enhancing existing ones to meet evolving market demands, ensuring we stay ahead of industry trends.
Secondly, operational efficiency is key. We are investing in cutting-edge technology and optimizing our processes to reduce costs and improve margins.Furthermore, market expansion plays a critical role. We are not just focusing on expanding our product portfolio but also on penetrating new markets both domestically and internationally. The establishment of new manufacturing facilities in Cairo, Egypt and Palghar, Maharashtra is a strategic move towards this goal, enabling us to cater to a broader customer base and diversify our revenue
streams.
Lastly, customer satisfaction remains at the heart of our operations. By maintaining high-quality standards and delivering value to our customers, we aim to strengthen our market position and foster long-term relationships. This comprehensive approach underpins our confidence in sustaining our growth momentum and continuing to deliver value to our stakeholders.
Your business model is aimed at consistently expanding the product portfolio to cater to multiple end-use applications. Can you tell us more about your product pipeline?
Krishna Dushyant Rana: Platinum Industries was born out of a vision to redefine the landscape of the PVC industry in India. With a focus on innovation, the company has established itself as a vital player in the production of essential components that cater to a diverse range of applications. Our product portfolio includes high-quality additives for PVC pipes, profiles, fittings, as well as for the manufacturing of electrical wires, cables, SPC floor tiles, rigid PVC foam boards, and packaging materials.
The development of lead-free stabilizers further underscores our dedication to environmental stewardship and health safety. Our products are designed to enhance the performance, durability, and safety of PVC applications, setting new standards in the industry.
Can you tell us if there are any specific investments or expansion you are looking at from the proceeds of the IPO.
Krishna Dushyant Rana: A significant portion of the IPO proceeds is designated for the capital expenditure requirements of establishing a state-of-the-art manufacturing facility for PVC Stabilizers in Palghar, Maharashtra. This facility is not just an expansion of our physical footprint; it’s a leap towards enhancing our production capabilities and product portfolio, especially focusing on lead-free stabilizers and associated products
Additionally, we are channelling strategic investments into our subsidiary, Platinum Stabilizers Egypt, located in the SC Zone, Egypt. This investment reflects our global ambitions and is pivotal in positioning Platinum Industries as a key player in the international market.
The Egyptian facility will serve both local and international markets, facilitating our entry into Middle Eastern and African markets, thus diversifying our customer base.
The remaining proceeds will bolster our working capital requirements, ensuring operational fluidity and the ability to swiftly respond to market demands. This strategy is designed to sustain our growth trajectory, support our expansion plans, and enhance shareholder value.
You are currently one of the leading manufacturers and suppliers of PVC stabilizers in India. What are the global ambitions looking like?
Krishna Dushyant Rana: As Platinum Industries embarks on its journey to expand its global footprint, we are strategically positioning ourselves to meet the increasing international demand for PVC stabilizers. Egypt stands out as one of the largest consumers of PVC stabilizers in the African continent, yet it lacks local manufacturers for these critical components. This presents a unique opportunity for Platinum Industries to fill a significant market gap and become a pioneer not just in this region but also cater to a wider geography. The growing demand for stabilizers in North Africa and the Middle East positions Egypt as a strategic hub, and with the establishment of our new manufacturing facility in this region we will not only be able to amplify our production capabilities but also to solidify our presence on the global stage. It’s a strategic move that will enable us to enhance our supply chain efficiencies, reduce logistical costs, and provide timely and competitive products to these rapidly growing markets.
What is your vision for Platinum Industries over the next few years?
Krishna Dushyant Rana: Looking ahead, my vision for Platinum Industries over the next decade is to establish ourselves as global leaders in the PVC stabilizers and additives market. We aim to expand our footprint across new geographies, particularly focusing on markets with growing demand for sustainable PVC solutions. By continuously investing in technology and innovation, we aspire to drive the industry towards more environmentally responsible practices. Ultimately, Platinum Industries seeks to not just respond to the market but to shape its future, creating value for our customers, stakeholders, and the planet.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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