With the current expansion plan, Regaal Resources Ltd. is confident it will grab the third top spot in the industry in terms of capacity, said Karan Kishorepuria, whole-time director. In terms of having the single plant, Regaal Resources will likely hold the top spot.
Regal Resources is now focused on increasing the production to 1615 tonnes of crush per day from the present capacity of 825 tonnes of crush per day, said Anil Kishorepuria, chairman and managing director. The company started with 180 tonnes of crush per day in 2019.
The total market size in India is 20,000 metric tonnes per day. When Regaal Resources started the company, it was less than 1% of the total market. Now with 825 tonnes of crushing per day, Regaal Resources is at 3–4% of the market. After expansion, the company will be at 9–10% of the market. This implies the company may hold the third post, explained Whole-Time Director Karan in an interview with NDTV Profit.
Regaal Resources’ initial public offer of Rs 306 crore opened on Tuesday. It will conclude on Thursday. The proceeds from the offer will not be utilised for the expansion.
Anil Kishorepuria, Chairman and Managing Director, and Karan Kishorepuria, Whole Time Director, Regaal Resources Ltd. were speaking to NDTV Profit’s Executive Editor Niraj Shah.
The proceeds from the IPO will be used to repay debt, said Whole-Time Director Karan. Regaal Resources operates in Bihar and is headquartered in Kolkata. The Bihar Government gives an interest subsidy which does not apply to debt.
As the company expands, it already has internal accruals and bank loans committed for the expansion. Regaal Resources has already ordered machinery for the plant, and it is in the commissioning phase, he said.
Regaal Resources is focusing on capacity expansion rather than producing value-added products. With the additional capacity, the company intends to produce value-added products like liquid glucose, maltodextrin powder, monohydrate, and dextrose monohydrate, along with numerous modified products, said Chairman Anil. These products will substantially increase the EBITDA and the net profit. It will also increase the topline as well.
. Read more on IPOs by NDTV Profit.