The Hindu Business Line : 13 State PSUs to make turnaround this fiscal

The Industries Minister said better management, comprehensive restructuring, monthly review of performance and introduction of new marketing strategies had paid off.

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Kochi Feb. 13 For the first time 13 more Kerala State public sector units are likely to make a turnaround this fiscal against nine units in the previous years, raising the total number of profit-making PSUs to 22.

Disclosing this to Business Line, the State Industries Minister, Mr Elamaram Kareem, said this had been achieved through various measures such as better management, comprehensive restructuring, monthly review of performance and introduction of new marketing strategies.

He said that monthly target had been set for each unit and it had been monitored very closely. The Government had adopted a strategy to market the products of these units in the central PSUs such as the Railways, Defence, and power sector besides other State Government departments.

There had been positive response from these Central and State Government establishments. Thus, more demand has been created and accordingly the capacity utilisation of the units has been increased. The quality parameters of the buyers are also being met. At the same time strict financial control has been imposed to keep the cost of production under check, Mr Kareem said.

The companies that had made significant improvements included United Electrical Industries Ltd (UEIL) in Kollam. The unit that was making a turnover of Rs 60-70 lakh a month had made a turnaround to Rs 4.3 crore a month now within a span of six months and it has made profits, he said.

Similarly, Kerala Automobiles Ltd in Thiruvananthapuram has improved its performance and started manufacturing three-wheeler pick-up vans and finding markets for it in other States.

Forest Industries Ltd at nearby Alwaye and Keltron Magnetics Ltd, Kannur, and Kerala Electricals Ltd (KEL) unit in Kasargode have made significant progress in their financial performance.

The Handicrafts Development Corporation, which had been making losses in the past, also made a turnaround this year by selling products through exhibitions/shows in various cities and towns in the country.

Keltron

Most of these units were in the red with huge accumulated losses. Keltron is such a company that has made good operational profits. Its turnover is estimated at Rs 130 crore with a profit of Rs 18 crore this fiscal. It is planning to reach a one-time settlement with the financial institutions this year.

Similarly, Steel Industries and Forgings Ltd had started manufacturing products for the ISRO and is on a better track now. The ISRO has already agreed to extend an interest-free loan of Rs 3 crore to the company, he said. It could manufacture hi-tech products for the defence also.

Steel Complex Ltd (SCL) is also on the path to recovery and its revival is being worked out with the co-operation of Steel Authority of India Ltd (SAIL), he said.

The Tranformers and Electricals Limited Kerala (TELK) had improved its performance by becoming a captive supplier of transformers to the National Thermal Power Corporation (NTPC). The unit was referred to BIFR as it had been making continuous loss. Now the company will be out of the BIFR net soon, he said.

Other companies

The other companies that would be making a turnaround are Traco Cables Ltd, Travancore Sugars and Chemicals Ltd, Travancore Titanium Products Ltd and the Travancore Cochin Chemicals Ltd.

The Kerala Minerals and Metals Ltd (KMML), which had been showing a downward trend in its operational profits, would be making a significant achievement this fiscal. The company for the first time in its history had made a record production of 3,427 tonnes of titanium dioxide valued at Rs 29.27 crore in January 2007.