SME Exchange is an Essential Need of India
V A George,President & CEO, Thejo Engineering

Thejo Engineering may become the first company to be listed on NSE's exclusive platform for small and medium enterprises (SMEs). The company is planning to raise about Rs 20 crore through an initial public offer.

When asked why the organisation chose NSE and not the BSE, V A George, President & CEO, Thejo Engineering, in a telephonic conversation with CEW, said, "Both are major stock exchanges in the country. In terms of turnover, NSE has got the lionĘs share. It leads the way with innovating ideas and possesses one of the best global platforms for on line trading."

George is of opinion that the newly launched SME platform will be more successful than Over-the-Counter (OTC) Exchange of India. OTC Exchange of India was ahead of its time and was based on the significance of the SME platforms of BSE and NSE. Over-the-Counter Exchange format from US started in 1990, and could manage only 100 odd listings, which are virtually lifeless now.

"OTC Exchange of India was started about 20 years back. At that time we did not have technology platform that we have today including NSE and BSE. Further, OTC was a separate platform all together, while SME Platforms of BSE and NSE are linked to main platforms ensuring greater opportunities for small and middle level companies," he added.

George said that SME exchange is an essential need of India as there are thousands of middle level companies in the country who need to augment their capital. On the significance of BSE and NSE, George commented, „BSE and NSE are supported by their respective Exchanges.

Companies listed in SME platform can stay there for 3 to 5 years and seamlessly migrate to the main platform, namely, BSE and NSE when their capital requirement increases. The SME platform is similar to Private Equity . However, a group of informed investors invest into the country and they have an exit route.

Impact of Depreciating Rupee Value
George explained, "Depreciating value of the rupee will be a benefit for a company, which is into exports. And for a company that import a lot and export less, it will be a disadvantage. So, the affect of the depreciating value of the rupee will be based on the export and import composition of the company. As far as Thejo Engineering is concerned, it exports are much more that the imports." Thejo Engineering Limited has recently started operations in Australia through its wholly-owned subsidiary, Thejo Australia Pty Limited. Thejo have also established few other joint ventures including Thejo Hatcon Industrial Services in Saudi Arabia, where it possesses 51 percent stake and Hatcon has 49 per cent stake."

Thejo Engineering
Thejo is a 36-year-old company. It is mainly into maintenance of bulk material handling equipment like conveyors including Conveyor Belt Cleaners, Conveyor Belt Repair Equipment, etc. The company is engaged in installing and maintenance of these equipment round the clock. Further, it is also engaged in manufacturing of material, which are required for maintenance and products that finds applications in mineral processing and corrosion production. "Most of our products, we manufacture, are basically rubber based. We manufacture Screening Solution, Grinding Solution, Ceramic Liners, Wear Resistant Liners, Slurry Hoses and many more. We also manufacture bulk material handling products, and also maintain and install conveyors. About 50 percent of our turnovers come from manufacturing and 50 percent come from services. We export about 20 percent of our products to countries like Ghana , Africa, South America, etc. We have four manufacturing units located near Chennai. For services we have around 850 employees deployed at 55 placed all over India," revealed George.

Last year Thejo's turnover was about 120 crore. For the last four years the company is growing at the rate of 25 percent. The company has appointed IDBI Capital as its Merchant Banker.