Hi,
Triton Valve and Triton Climatech manufacture valves, whilst Triton Futuretech in into commodity.
The broader idea of the amalgamation of both entity is:
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Triton Group is currently more focused on the expansion of Triton Climatech, and because Triton Valve is a holding company, it can be difficult for TV to transfer funds to TCT if there is a temporary need for working capital.
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By amalgamating these two entities (which is into valves manufacturing) and since the machineries are fungible and its easy to scale as and when required. It will have a synergistic effect, resulting in an increase in gross margin going forward.
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Since the group is confident to achieve a topline of Rs 500cr in current fiscal, any minor improvement in gross margin will result in expansion of bottom-line.
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Current debt is Rs 110cr.
Disclaimer: Invested and biased…
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