The Hindu Business Line : Orders galore for Jessop's EMU unit

Having supplied 36 coaches in 2003-04, the company is executing orders for 81 broad- and 50 metre-gauge coaches. For 2005-06, the company has orders for 121 broad- and 50 metre-gauge coaches.

The order book position will strengthen further if the company is successful in tapping the neighbouring countries.

"We are suffering from a mismatch in the man-machine ratio which is restricting the company from running the manufacturing facilities for full three shifts. Also, the existing shed space is a constraint in the way of expanding capacity," says the company Chairman, Mr Pawan K. Ruia.

He said that construction of a new shed was being considered exclusively to cater to the demand for metre gauge coaches.

The plan, however, would not be easy to implement because the company was governed by a BIFR revival scheme, Mr Ruia said.

Profit rises: Taking the lead role in bringing Jessop back into the black in the current year, the coach division has registered a 12-fold jump in profit to Rs 9.6 crore during the first nine months of the current year compared with Rs 80 lakh during the corresponding period of 2003-04.

The division handling production of cranes, gates, structurals and wagons has so far shown little signs of improvement, incurring a loss of Rs 5 crore between April and December 2004, compared with a loss of Rs 5.3 crore during the corresponding previous year period.

The divisions handling "road plant" and mining and haulage have also incurred losses.

Overall, Jessop registered a profit of Rs 2.12 crore against a loss of close to Rs 8 crore during the first nine months of last year.

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