Tega Industries To Focus On New Market Products To Sustain Growth: MD Mehul Mohanka
Tega Industries is set to achieve a compound annual growth rate (CAGR) of around 15% for the next three to five years, while sustaining its Ebitda margin, according to the company’s managing director and group CEO Mehul Mohanka. Speaking to NDTV Profit, Mohanka said the company would focus on introducing new products to leverage its operating capacity and to drive growth.
Tega Industries recently rolled out a new mill liner called DynaPrime, which replaces traditional steel mill liners.
"If you look at our seven-year history, we have been growing at a CAGR of 20%, and over the last three years, we have been guiding the market at about 15% CAGR. In the last seven years, our base has moved up as well so, today, in FY24 we are roughly at Rs 1,500 crore revenue,” he said.
“The intention is to continuously bring to the market new products that can help us leverage our operating capacity and, at the same time, maintain our margins," Mohanka said.
He also spoke about balancing the 15% and above growth with 21-22% Ebitda margins.
Tega Industries manufactures and designs critical-to-operate consumables in the mining space. Almost 85% of the company’s revenue comes from overseas.
Besides seven plants in India, the Indian-born MNC has manufacturing locations in South America, Chile, South Africa, and Australia.
The company is resistant to geopolitical risks in South America and Africa as it has an opex (operating expense)-related business, Mohanka highlighted.
“Mining countries or commodity-led countries tend to be a bit riskier than the others. But then we have been in the business, and have been able to de-risk ourselves from the geographies,” Mohanka explained.
On being asked about the impact of China slowing down mining, Mohanka said the development was unlikely to affect their business.
“China is a big market for mining, but we have intentionally stayed away from it because I believe China is a one-time supply market. We have a lot of inherent IP in our product that I would not want exposed in an economy where we cannot protect it,” Mohanka said.
