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Transformers and Electricals Kerala Ltd (Telk), a joint venture between Government of Kerala and power major NTPC, has returned to the black after being put through the rehab mode in the mid-1990s.
Breaking a lean patch that lasted 30 years, Telk has found itself a place in the list of dividend-paying companies, according to Mr Arun Kumar Gupta, Managing Director.
TECHNOLOGY UPGRADE
The next challenge is to upgrade the old technology through foreign collaboration, which is under finalisation, Mr Gupta said.
The power transformer manufacturer has in fact paid a dividend on a trot during 2009-10 and 2010-11. Telk paid Rs 1.87 crore to State Government and Rs 1.53 crore to NTPC, joint venture promoters of the company.
It has also become a zero debt company with a net worth of more than Rs 107 crore, Mr Gupta said.
A State Government-owned company, Telk was referred to the Board for Industrial and Financial Reconstruction in 1995. A tripartite revival agreement was signed in June 2007 by the Government of Kerala, NTPC and Telk.
NTPC had committed an initial investment of Rs 31.34 crore for a 44.6 per cent share of the paid-up share capital of the company, which was ultimately transferred to it in June 2009.
BOARD REJIG
In line with the terms of the agreement, the State Government reconstituted the board of directors if the company with eight directors (four nominees each of the State Government and NTPC).
The Additional chief Secretary, Industries Department, the nominee of the State Government, was appointed the Chairman while that of the NTPC was made the Managing Director.
The joint venture status enabled Telk become more competitive and bag fresh orders from private power producers and gain market acceptability in the process.
According to Mr Gupta, overall performance of the company has vastly improved over the last three years with the turnover exceeding Rs 200 crore working at a base capacity level of 5,000 MVA (megavolt-ampere).
HIGHEST PRODUCTION
The latter two years have seen the company achieve the highest production and sales in MVA terms since its incorporation.
The company has also won during both these years the award for outstanding achievement in enterprise performance and corporate leadership for the Managing Director amongst all public sector undertakings in the State.
As for the current year, the company has set an ambitious target of 6,000 MVA against an installed capacity of 4,500 MVA.
TIMELY HELP
Mr Gupta thanked the State Government in general and the Minister of Industries, Mr P. K. Kunhalikkutty, and the Additional Chief Secretary, Industries, Mr T. Balakrishnan, in particular for help and guidance through a difficult period.
“Today, Telk is on the threshold of a quantum leap into extra-higher voltage operations, capacity augmentation and technology upgradation,” Mr Gupta said.
Newer and innovative ways and re-engineering of old business processes and higher productivity levels are the need of the hour, he added.
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