Shasun Chemicals - Moneycontrol.com

According to Angel Broking, Shasun Chemicals, which trades at about Rs 100, is good for Rs 145 that is about 45% upside from the current price.

Vimal Kumar, Wholetime Director Of Shasun Chemicals says that Shasun is now bullish on CRAM segment after the acquisitions of UK operation from Rhodia. He adds that so their biggest challenge is to turn it around the loss making company Rhodia into posting a positive Ebitda.

Excerpts from CNBC - TV18’s exclusive interview with Vimal Kumar:

Q: Start off by telling us a little bit about your business growth plans particularly in the CRAM segment?

A: Shasun is now bullish on CRAM segment after the acquisitions of UK operation from Rhodia. The contract research and manufacturing, or CRAM segment looks very positive and this year we have booked 40% of our sales from CRAM businesses. In terms of value we are expecting doing business worth USD 100 million worth business in the CRAM space.

Q: What will be your revenue mix in FY08 be if you could take us through between bulk drugs category and the CRAM business?

A: Bulk drug would be in the range of 40% and 45% which would come from CRAM space and balance would be from formulation. In formulation our model is purely contract manufacturing although I don’t classify under CRAM specifically but we have entered into two contracts with Glenmark and Alpharma and also with Actavis now and we hope to start our commercial sales by 2007 end calendar.

Q: There are some reports that suggest that you might be looking at acquiring Ranbaxy Ireland unit. Is that true that you are looking for those sort of inorganic move?

A: There is no truth in that news. Although there is a large-scale facility at pilot plant availability in US, which we may look out for.

Q: Anything else on the card apart from that?

A: That would be our focus right now. We have acquired last year from Rhodia, a loss making company and so our biggest challenge is to turn it around.We are very confident of turning it around by next year and posting a positive Ebitda.

Q: This report we got suggest you might do Rs 900 crore a bit more than that in the next financial year and Rs 11.5 in earnings per share.Is that a doable target for Shasun?

A: Definitely we are confident about achieving much more than that and probably even touching Rs 1000 crore by financial end 08 and yes we are confident.

Q: What would that mean in EPS?

A: EPS should be somewhere around 12-13.