The Hindu Business Line : W.S. Ind Vizag plant to go on stream by June

Chennai, Feb. 25 The second plant of the Chennai-based W.S. Industries Ltd (WSIL), coming up in the multi-product special economic zone in Visakhapatnam at a cost of Rs 107 crore, will be production-ready by June.

The plant will add 10,000 tonnes to W.S. Industries’ present capacity of 16,000 tonnes.

The company will then be among the world’s top 10 manufacturers of insulators for power transmission.

WSIL makes transmission line insulators and sub-station insulators. The facility in Porur, Chennai, has an installed capacity of 16,000 tonnes of insulators per year and makes both varieties in equal share.

The Managing Director of the company, Mr Narayan Sethuramon, told Business Line the Vizag plant would make only sub-station insulators.

Performance

Business has been good for the company in the current year.

The company ended last year with a turnover of Rs 165 crore on which it made a net profit of Rs 6.5 crore.

In the first nine months of current year, the company recorded 33 per cent growth in the topline and over 100 per cent growth in the bottomline, thanks mainly to cost-cutting measures and process improvements.

Mr Sethuramon said that the company expects a 40 per cent growth in the topline and another doubling of net profit, next year.

Currently, about 15 per cent of W.S. Industries’ revenues come from its projects division, which undertakes jobs of erecting and commissioning of sub-stations and transmission lines.

The division is two-and-a-half-years-old (the company itself is 45 years old.) With several opportunities emerging, Mr Sethuramon sees the division’s contribution to topline going up to 25 per cent in two years.

The company has an arrangement with PPC Insulators of the US, under which the foreign company will sell its high-end products through W.S. Industries. PPC will also buy the low-end insulators for its global customers from the Indian partner. Mr Sethuramon sees this as a profitable partnership.

Promoters of W.S. Insulators hold 41.5 per cent in the company and they have issued themselves convertible warrants that would result in their holding going up to 46 per cent and an inflow of Rs 10 crore into the company.

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