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We are aiming to double our production in the medium term

Em News Bureau ,  Thursday, January 24, 2013, 11:01 Hrs  [IST]

Jayesh shah— Jayesh Shah, Director, Citizen Metalloys Ltd

Citizen Metalloys is amongst the largest manufacturers and exporters of a range of copper products used in the electrical equipment industry. Jayesh Shah talks to Electrical Monitor about his company’s business and future plans. Shah explains how a recent shift from generic products to customized products has added significant business value. Apart from doubling production over the next few years, Citizen is also targeting higher exports revenue, notes Shah.

At the outset, tell us about the various copper products made by Citizen Metalloys.
We manufacture copper flats, rods, sections and anodes. These have been our regular products. Now, we have started developing copper components as per customer as per customer requirements. In present scenario, customer requires customized and finished products that they can directly use in assembling or manufacturing of their products. Some of the application industries are manufacturers of switchgear, electrical control panel, transformers, bushings, etc.

Tell us about your current manufacturing plant at Chhatral in terms of current capacity, future expansions, etc.
Our current manufacturing plant at Chhatral in Gujarat has capacity of 3000 tonnes per annum. Talking about our future expansion, we are focusing on expanding horizontally in terms of increasing the product range rather than pursuing volume expansions. We are providing copper products with value addition by carrying out in-house operations such as machining, bending, punching, cutting, drilling, sleeving, forming, forging, plating etc.

The electrical equipment industry appears to be in a phase of recession. What is your view?
Yes, we can perceive the recession or downfall in the electrical equipment industry. In our view, the actual demand in the market is high but due to liquidity problems in the market, this segment is facing a slowdown. We feel that it is a short-term problem and will be overcome soon. The power sector is tremendously growing day-by-day.

Citizen MetalloysInternational copper prices are sometimes erratic. How does this impact your raw material purchase?
Copper prices are always unstable as a consequence of ups and downs in Eurozone, US economy fluctuation and sometimes demand-supply ratios. But it doesn’t make major impact on our raw material purchase, because we always purchase our raw material in accordance with our sales orders.

Do you think that availability of copper cathodes has improved after the setting up domestic capacity by Vedanta, Birla Copper etc.
Copper cathode manufacturers like Vedanta, Birla Copper and Hindustan Copper have improved the availability by setting up domestic capacity and many local warehouses. However, because of the government tax and duties structure, we still have to import our raw material.

Please tell us about the exports business of Citizen Metalloys.
We started our exports with two countries Sri Lanka and UAE. In a very short span of time, we have been able to expand our exports to more than 35 countries worldwide. Now we are government-recognized export house and our present export turnover is around 25 per cent of total turnover. We are looking forward to capture more export market in near future.

Please summarize your growth plans for Citizen Metalloys for the medium term.
In terms of growth, for the coming 3 to 5 years, we are foreseeing to double our production and increase our product range as well. To achieve these, we are planning to automate most of the production facilities and adopt new marketing strategies which will help us to locate and capture the untapped potential of the market.
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