Interview with Macpower CNC Machines Limited
Our new series of products have received widespread market acceptability stresses Rupesh Mehta, Promoter, Chairman & Managing Director, Macpower CNC Machines Limited.
A few months ago, your company had initiated a separate sales group vertical called 'NEXA' for the import substitution of high-end premium products. What is the company’s vision for NEXA over the next 3 years?
We plan to explore the growth opportunities in high-end products like specialized VMCs, HMC, and VTL through the induction of a sales team under the NEXA group in different regions of India and imparting specialized training to cater to the higher-end segments to generate value-based additional growth for the company. Therefore, the NEXA team will work parallel to our existing sales team. However, this group will focus only on growing the mix of our higher-end and high-value machines in our overall revenue.
What are your growth levers?
CNC Machine manufacturing industry has an entry barrier. It is not easy for new players to enter and be able to grow at a steady pace. It takes years of relationships, network building, service networks, manufacturing, training employees, etc to be able to run a profitable business in the long term. We cater to more than 27 industrial segments catering to 3000 plus different industries, which help in products spread across various segments.
Government support through subsidy ranges from 15% to 35%. There is a restriction for imports in government tenders up to Rs 200 crore. Over the years, we have established ourselves as a qualitative and reliable supplier to private and government customers. Our backward integration efforts have been focused on ensuring quality products for customers. Our new series of products has also received widespread market acceptability.
What are your top 3 strategic priorities?
Our top 3 strategic priorities today are:
a. Further backward integration to ensure a high-quality supply of key raw materials and components.
b. Quality output and specific weightage on R&D to keep establishing our new and high-end product range.
c. Expand manufacturing capacities to keep up with increasing demand and order book.
What is your earnings outlook for the upcoming quarters?
We do not look at business on a quarter-to-quarter basis. However, we are envisaging good revenue and earnings CAGR over the next 3 – 5 years.
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