Mascot Powersys to expand 9-fold plans IPO
Car CNG kits distributor Mascot Powersys today said it plans to expand its footprint by over nine-fold to 74 outlets in the next three years across India and is looking to raise about Rs 200 crore from IPO in 2013.
The company also said it will consider setting up a local manufacturing facility for the CNG kits, which are at present imported from Poland and Italy.
"Currently, we are present only in Delhi with eight outlets where we fit the kits in cars. Our plan is to expand pan-India in the next three years and have 74 stores by 2013," Mascot Powersys Director Yash Arora told PTI.
The company aims to have 20 outlets in Delhi by 2012, besides foraying into other markets such as Ahmedabad, Surat, Vadodara, Mumbai and Pune by 2013, he added.
Arora said the new stores will mostly be in franchise mode, but there will be about 15 company-owned stores.
When asked about investments, Arora said: "We will invest Rs 20-22 crore on expansion of the company-owned stores."
The company, which sells multi-point gas injection kits in its outlets -- CNG Experts-- is expecting a turnover of about Rs 70 crore in the next three years. Currently, its revenue stands at about Rs 8 crore per annum.
Arora said the Indian market for retro-fitted CNG kits along with the cylinder is estimated at about Rs 16 crore per month.
Mascot Powersys is also foraying into printing of secure certificates for college and university mark sheets, besides being present in pipeline laying for natural gas. It is also present in Tashkent through its CNG kits business.
When asked about its fund raising plans, Arora said: "If our all businesses do well, then we are planning to raise about Rs 200 crore from the IPO in 2013."
The company will dilute 18-20% stake for raising the money through the initial public offer, he added.
Arora said the company is planning to manufacture the CNG kits locally and the IPO proceeds will be utilised for it.
"Currently, we are importing the ECM and other electronic components from Stag in Poland, while the CNG reducer comes from Italy's Tomasetto Achile. When the demand grows here, we are looking to set up manufacturing facilities in the next 3-4 years to produce them locally here," he added.
The company has already shortlisted some locations and both the foreign firms have given their consent for local production in India, Arora said.