ECIL turnover crosses Rs 1,000 crore; grows 48% over last year
By Our Corporate Bureau | 10 Apr 2003
New Delhi: Continuing its successful growth over the last three years, Electronics Corporation of India Ltd (ECIL), the pioneer of indigenous electronics revolution in India, has announced its annual financial results for the year 2002-03. It has posted a record turnover of Rs 1,005 crore and an impressive profit before tax (PBT) of Rs 150 crore.
Impressive performance
V H Ron, chairman and managing director, ECIL, who scripted the turnaround of the company, says: “Our drive to contribute to the technological progress of the country has helped us leverage the potential of our people and the world-class infrastructure to produce excellent results and consistent growth. ECIL will continue in directing its efforts to further strengthen its status as a national asset “
The Rs 1,005-crore turnover means a growth rate of about 48 per cent and the profit of Rs 150 crore translates into 90-per cent growth when compared with the performance of the previous year. The defence sector contributed to 45 per cent of the turnover, followed by 32 per cent by the civilian sector. The nuclear sector contributed about 15 per cent, followed by 8-per cent contribution from telecom.
The turnaround efforts and rewards
The impressive performance is a result of a number of innovative management initiatives enabling the rediscovery of the inherent strengths of the company that heralded the revolution in electronics and IT in India. Major initiatives include customer-centric focus, participative management, right-sizing, prudent working capital management and operational excellence achieved through quality management and Six Sigma initiatives.
ECIL saw a lean phase during 1997-99, incurring losses, and was referred to the BIFR due to the embargo placed on several public sector units after the Pokran test. However, the leadership of Ron resulted in ECIL achieving a break-even in 1999-2000, a profit of Rs 12 crore in 2000-01 and a profit of Rs 79 crore in 2001-02.
Future focus
The company's plans for 2003-04 target a turnover of Rs 1,250 crore and profits of Rs 175 crore. This will be supported by intensified focus on R&D, HRD and customer relationship management.
Says K S Chandrasekahar, Technical director, ECIL: “Our products and technology has withstood fierce competition from multinationals throughout; this has led us to believe that we can make our mark internationally, too. Roadmaps have been drawn to focus on export market and we aim to do over Rs 50 crore from that segment to begin with.“
Ron adds: “ECIL is able to convincingly demonstrate its capabilities to combat technology denials from advanced countries thereby standing up to the founding principle of the company to achieve self-reliance in electronics.“