Interview with Goodluck India Limited
Consistency in Government policies along with an enhanced focus on infrastructure development across the country is a major growth trigger for us, believes Mahesh Chandra Garg, Chairman and Managing Director, Goodluck India Ltd.
In FY22 the export business of Goodluck India crossed an important milestone of Rs 1,000 crore, registering a YoY growth of over 110%. Do you expect this growth momentum to continue over the upcoming years and what is your next target milestone?
In FY22, our exports more than doubled to about Rs 1,100 crore approximately. We believe this momentum is likely to continue in the current financial year as well as over the next couple of years. There are several reasons for it. The Government is extremely bullish on the export front and is continuously revising targets every month. Post the Covid-19 pandemic, most of the corporates are also looking beyond China and this should also augur well for us. To add to it, Goodluck India’s products are known for quality consistency & timely delivery. Hence, we would continue to focus on the export front and are reasonably confident of 15% growth year-on-year over the next few years.
With inflation leading to a rise in input costs, what cost optimization measures are you implementing to safeguard profit margins?
Commodity prices are currently at record highs and as a result, inflationary pressure is being felt across the globe. This is mainly due to container shortage and global turmoil. As such, inflation is a major concern for all of us.
Goodluck India is a basic converter of raw steel into finished goods. We generally pass on every increase to the ultimate customer, but with a time lag. Thus, we can safeguard our profit margins.
At the same time, on the production front, we are trying to increase production and enhance capacity utilisation to 85% plus, which will help us reduce costs to some extent.
What are your plans to further expand and diversify the company’s portfolio into high margin value-added products?
Goodluck India already has a diversified product portfolio. We are present in various verticals including infrastructure, automobile, oil & gas and defence. These sectors would continue to remain our focus. Products of these sectors are value-added in comparison to general products like ERW Pipe. We would continue to include value-added products in our product mix and increase their share in the total turnover of the company.
What are your key growth triggers?
Consistency in the Government policies along with an enhanced focus on infrastructure development across the country is a major growth trigger for us. The changing global dynamics, which favour India over China and other related countries, also augur well for us.
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