Cimmco surges 10%; here's what the management says

CIMMCO shares gained nearly 10% in intraday trade today. In a chat with ET Now, Umesh Chowdhary, VC & MD, CIMMCO, shares his views on the outlook o the company. Edited Excerpts:

ET Now: We have learnt from our sources that you have got a defence licence. Can you tell us what this is about? Are you production ready?

Umesh Chowdhary: We are yet to receive any official communication about about the industrial licence as of now. We had applied for industrial licences from CIMMCO and from Titagarh but we are awaiting the official communication.

ET Now: If assuming that what we are learning is true from our DIPP sources, would you be doing it with a JV with a foreign partner? Are you ready for production? What is the kind of revenue uptick if you get this licence as and when you do?

Umesh Chowdhary: Infrastructure that we have in CIMMCO is quite large. For specific products we would need to put in additional capex. In some of them need to get in technical joint venture partners. It will not be uniform strategy for every product that we wish to enter into.We want to focus our infrastructure in CIMMCO for the defence business.