Emco To Focus On T & D Sector

The smaller ones, I think, will have to wind up operations. Only big companies can hold itself afloat without getting any payments for two years. BHEL can wait for any number of years for payments because it is a government organisation. No private sector company can afford to do it. Banks will make life miserable for them. So many small companies, I am told, have not paid their interest for the last quarter. Principal repayments are out of question now. Things are very grim now.

Is the non-availability of coal affecting the fortunes of the electrical industry?

Coal is the basic input on which the electrical industry operates and non- availability for power generation. Now it a left to the buyer and the seller to negotiate the rates and mode of transporting the new material to the desired location and thats how it has to be in a liberalised economy.

 

Brief on your companys presence ion the market and its future plans?

Emco has emerged as the market leader in 132 KV transformers and expanded its operations into the manufacturing of distribution transformers, 220 KV and of late 400 KV transformers.

Our clientele include ABB, Department of Atomic Energy, Larsen & Toubro, Siemens, IPCl, Indo Gulf Fertilizsers etc.

We are moving into the business of supplying equipment for sub-stations. We have also launched a contract division recently and we have received our first order for that division. Emco will also be introducing electronic energy meters in collaboration with a Swiss company.

Another area on top of our priority list is the business of supervisory control and data acquisition (SCADA) systems. This is where we are trying to position Emco in the coming three years. We want Emco to be a major player in the T & D business in the 21st century. All our efforts are concentrated on making Emco a leader in its field. Lets hope we will be able to meet our ambitious targets. After blaming the government machinery for not meeting their targets can I afford to not meet my own targets?

Comment on the financial performance of the company during the previous fiscal?

During he year 1996-97, Emco achieved a sales turnover of Rs 90 crore with a phenomenol growth rate of 61 per cent.

Emco transformers, incorporated in 1964, has

established its significant presence in the industry with a sizable share as well as leading the market in 132 KV

transformers. The company has emerged as the third largest manufacturer of transformers in India.

Business Standard spoke to Rajesh S. Jain, chairman and managing director of the company on the increasing need of transformers in view of serious power developmental efforts initiated by the Union government