The Hindu Business Line : UEIL records 89% increase in turnover

Kochi May 13 The Kerala government owned United Electrical Industries Ltd (UEIL) in Kollam has made a turn around last fiscal with 89.42 per cent increase in turnover and 86.7 per cent jump in its profits from that of the previous financial year.

The company's turnover shot up from Rs 7.11 crore in 2004-05 and Rs 4.97 crore in 2005-06 to Rs 47 crore in 2006-07, while for the first time in several years it had made a profit of Rs 2.37 crore last fiscal, Mr R. Suku, Director and General Manager of the company told Business Line.

The company has achieved this performance through reduction in power, water and employee cost besides enhancing production and adopting a pragmatic marketing strategy, he said.

Electronic meters

In fact, from October last the management had taken all efforts for diversification of products, expansion and modernisation of the company, which has yielded positive results, he said.

The major product of the company is electronic meters mainly for the Kerala State Electricity Board (KSEB). The average production per month in 2005-06 was 18,000 meters, which has been increased to one lakh meter/month during 2006-07. The company had achieved the record production of 1,56,771 meters in March 2007, he said.

Thus, the substantial increase in production and productivity has reduced the labour cost last fiscal. Compared to the labour cost of Rs 48 per meter in 2005-06 it was a meagre Rs 14 in 2006-07, he said. Besides, the mechanism was simplified in the meter production apart from modifying the scheme of testing.

More meters

To overcome the deficiencies of the existing meter a new LCD meter with electronic display was developed according to the requirement of the KSEB, he said. This new meter was launched on January 1. In addition, the company has developed a multi-function meter, which has been designed to measure maximum demand, current, voltage and other power factors, Mr Suku said.

The UEIL has also embarked on developing Air Break Switch for using in the 11KV circuit for the protection of transformers. Besides, KSEB it would be supplied to other state electricity boards. Already discussions were held with West Bengal and Tripura governments. Trial orders from the former for multi-function meters are expected this month. It is also expanding its market base in Andhra Pradesh, he said.

The company is also exploring the potential to sell its products in overseas markets such as Cuba and Venezuela. Steps have already been initiated towards this direction, Mr Suku pointed out.

Another new project launched by the company is to manufacture water meter for which training, vendor identification etc. has been completed. Apart from this, according to the requirements of the KSEB a poly-phase meter has also been developed by the company, he said.

The unit has recently become an ISO 9001:2000 certified company.

More Stories on : Performance | Electrical Goods | PSU | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GMDC diversifying into thermal power sector

Reliance may tie up with ONGC Videsh

Gilead Sciences counts on Indian pharma companies

UEIL records 89% increase in turnover

New ECIL Director (Finance)