Which are your target markets for Sprinton? Which markets do you plan to tap in the future?
Sprinton is targeted at the higher end of the segment. We will be competing with the top-end segment of the competition, mainly from Europe. Our focus will be on technology-savvy corporate firms in India as well as markets which are adept at absorbing advanced technology. We will focus on Turkey, Bangladesh, Indonesia and Sri Lanka.
How cost efficient is your product for the Indian market? What are your plans to deal with competition from low-cost manufacturers?
We have been marketing Motex for the last two decades. It is considered the best stenter manufactured in India. We have Motex running in extremely competitive markets. We have Motex running in extremely competitive markets such as Gorakhpur, Surat, Bhilwara, Bhiwandi and Ahmedabad.
This bears ample proof of cost-efficiency of Motex. Low-cost manufacturers have their own market segment, and we are not affected by their presence.
How do you view competition for this product from companies based in China, Germany and Italy?
We have already been competing with manufacturers from China, Germany and Italy for the last two decades. We have been increasing our market share in the last couple of years. Indian customers have benefitted from our European technology provided at Asian prices, without getting affected adversely by the currency pressure. The industry is mature enough to understand the distinct advantage Inspiron is offering on all the fronts of technology, price, service, spares and product support which none of our counterparts are in a position to offer.
What was your growth percentage in the last two years? What is your expected growth for the next two years?
We have improved our sales by 30 per cent in 2013-14. This year, our growth will be around 40 per cent as compared to the previous year. We believe the trend will continue.
What percentage of your overall profit is allocated towards R&D?
We are investing around `5 crore in the R&D centre which is under construction. This is a capital expenditure. However apart from this, we shall also be incurring recurring expenditure on account of the various R&D activities we shall be carrying out of our own as well as of associate industries like chemicals, auxiliaries, educational and research institutions, and the like.