Jessop expects wagon sales to go up

Jessop plans take up its turnover from the wagons segment from a Rs 24 crore at present to Rs 85 crore for fiscal 2007-08, up by more than 70 per cent.

The bulk of Jessop's 87.37 crore turnover this year is attributed to the enhanced production of wagons.

It produced and dispatched 476 wagons in 2006-07 as against 188 during the previous year, registering a rise of 153 per cent.

"We hope to produce and sell 800 wagons in 2007-08, taking the turnover from the segment to Rs 85 crore, as against a Rs 24 crore last year",said S C Saxena, managing director of the company.

Jessop's production line also included all types of cranes used in steel plants, ports and ship-yards, as also road rollers and related equipment.

All this is in line with the company's target to take its turnover to Rs 1000 crore in the next five years.

The company was open to the option of dilution of equity.

"We are not yet decided on whether to raise equity from foreign companies. We can dilute our stake by 24 per cent", Ruia said.

At present the public holding in the company was at 0.25 per cent while other corporate bodies held shares of 0.57 per cent, and its shares are rarely traded.

Ruia agreed that the promoters held a huge stake in the company as of now, more than 90 per cent, and that there is a high chance of entering the capital market.

Jessop's total landholding was at 188 acres, of which 115 acres was at its Durgapur plant.

Meanwhile, its re-valued asset base was worth Rs 800 crore as of this year.

"The valuation goes up with rising land prices; there is hardly any major change in the value of plant and machinery", Ruia said.

It was looking for a suitable site to build its marine components production unit, said Ruia.