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Nelco, a loss-making company from the Tata stable, has roped in Mr P.J. Nath of Sify Technologies as its Chief Executive Officer.
In his new role, Mr Nath has the twin mandate of shoring up the depleted bottom-line of the Mumbai-based company and increasing its market share in the burgeoning security services market of the country.
“It has been about four months since I have joined Nelco. After four stimulating years at Sify, I see this assignment as a perfect opportunity for me to do something new and different,” Mr Nath told Business Line , adding that the company is currently working on a slew of new initiatives.
The BSE-listed Nelco provides system integration and product management services in industrial controls, power, electronics, defence electronics, VSAT networks and automation. The security equipment and services market in India is pegged over Rs 3,000 crore.
Once a transistor manufacturer, Nelco was the first Tata group entity to be managed by Chairman Mr Ratan Tata after his induction in the 1960s. But it always remained a laggard in the consumer electronics market. Few years ago, it had diversified into manufacture of industrial electronic control systems with applications in power, steel, paper, cement, pharmaceuticals and petroleum sectors.
In 2006, Nelco became a subsidiary of Tata Power Company. Ever since, the company did not have a CEO but an Executive Director who would report to the parent company board.
In April 2010, electrical equipment maker Crompton Greaves had agreed to buy three business of Nelco—traction electronics, supervisory control and data acquisition (SCADA) and industrial drives — for Rs 92 crore. For the six months ended March 2011, Nelco had reported a net loss of Rs 4.8 crore on revenues of Rs 84.3 crore.
Second innings
For Mr Nath, this is his second innings with the Tata Group. Before joining the Nasdaq listed Sify, he worked with VSNL or the rechristened Tata Communications between 2004 and 2007. At Sify, he was the Executive President of the enterprise solutions business since 2007.
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