RICHARDSON AND CRUDDAS (1972) LIMITED Abstract The government-owned corporations are termed as Public Sector Undertakings (PSUs)

in India. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments. The Comptroller and Auditor General of India (CAG) audits government companies. In respect of government companies, CAG has the power to appoint the Auditor and to direct the manner in which the Auditor shall audit the company's accounts. Post-Independence, India was grappling with grave socio-economic problems, such as inequalities in income and low levels of employment, regional imbalances in economic development and lack of trained manpower, weak industrial base, inadequate investments and infrastructure facilities, etc. Hence, the roadmap for Public Sector was developed as an instrument for self-reliant economic growth. The country adopted the planned economic development polices, which envisaged the development of PSUs. Public Sector Undertakings (PSUs) can be classified as Public Sector Enterprises (PSEs), Central Public Sector Enterprises (CPSEs) and Public Sector Banks (PSBs). The Department of Public Enterprises - External website that opens in a new window acts as a nodal agency for all Public Sector Enterprises (PSEs). The Department of Public Enterprises sees the public sector becoming the prime mover in the industrial and social development of the country. Public Sector Undertakings (PSUs) have laid a strong foundation for the industrial development of the country. The public sector is less concerned with making profits. Hence, they play a key role in nation building activities, which take the economy in the right direction. PSUs provide leverage to the Government (their controlling shareholder) to intervene in the economy directly or indirectly to achieve the desired socio-economic objectives and maximize long-term goals.

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The Government provides Public Sector Enterprises (PSEs/PSUs) the necessary flexibility and autonomy to operate effectively in a competitive environment. The government has also implemented revised salaries for executives of PSEs/PSUs. Moreover, some innovative measures such as Performance Related Pay have been introduced to make them more efficient. These incentives for the employees have been linked to individual, group as well as company performance. It is well known that the PSEs were dominant till the late 1980s. But due to the unsatisfactory performance of PSEs, the Government of India has taken some policy measures in the early 1990s, i.e., New Industrial Policy, 1991. These policy measures have been adopted to improve the performance of PSEs. To deal with the problem of lossmaking units, the government established BIFR in 1987-88 under the provision of Sick Industrial Act, 198514. During 1992-2006, 74 CPSEs were referred to the BIFR. Out of them, 57 units were operating till 2005-06, and 16 CPSEs were closed. Out of the 74 companies that were referred to the BIFR for revival was Richardson and Cruddas (1972) limited. The company became sick in the 90s and has been sick ever since. And due to the continues efforts and strategies of BIFR and the Government it has started showing signs of improvement. 1. Introduction Noble Carr Richardson came to Mumbai in 1852, with fiery ambition. In 1858 his ambition found expression in the form of a small foundry. The foundry was set up in the compound of his bungalow in Byculla, then a fashionable locality of Mumbai. Through the years, the foundry flourished, and in 1870, Richardson & Company came into existence, it was a partnership venture - with the two sons Noble and William Richardson joining hands with their father. In 1880 Richardson & Company absorbed the business interest of Nicol & Company of Parel Road, Mumbai. With the merger, John Cruddas, the Manager of Nicol & Company became a partner and thus began a new thriving partnership - Richardson & Cruddas - later to become the largest structural and mechanical engineering Company in Western India. A New Era Dawns Richardson & Cruddas as a partnership venture, continue to prosper both in Western and Southern India. However, with India's Independence the British partners sold the company to Haridas Mundhra who became its sole proprietor. In 1949 the firm was turned into a Private
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Limited Company with 100% Indian Capital. In 1972 the business of the old Company Richardson & Cruddas Ltd. was acquired by the Government under an Act of the Parliament and a new company called Richardson & Cruddas (1972) Ltd., was formed on 15th March, 1973 as a wholly owned, "Government of India Undertaking". The company had become subsidiary of M/s Bharat Yantra Nigam Ltd., (BYNL) Allahabad from 01.04.1987 a company set up by Govt. of India. Later in 2007, BYNL was wound up by DHI Ministry and since then the company is operating independently. At present Richardson & Cruddas (1972) Ltd have four large workshops at Byculla-Mumbai, Mulund-Mumbai, Ambattur-Chennai and M. I. D. C. Industrial Estate, Nagpur. All the four units has necessary infrastructure pertaining to the products of their unit. R&C has built a name in the fabrication industry, projects services, environment engineering/ Tower testing field catering to various sectors. Turning sick The company had started incurring losses in 1990s and about 150 workers were forced to take voluntary retirement in 2002. The company was declared sick in 1992 and has remained sick ever since. Although the government and the company has tried cutting down the expenditures and reduce losses, the company yet again incurred the loss of INR 21.55 crore although it is less than the loss of INR 27.38 crore during the previous year 2009-10. The company has had problems with dividend payment and has not declared dividend to 8% Redeemable Non-cumulative Preferential shareholders amounting to INR 186.08 Lacs due incurred by the Company. The company is reeling under a huge unsecured loan of INR 338 crore carrying a interest rate in the range of 14.5% to 22.5% including penal interest. Although many revival strategies were proposed for R&C, it could never break even due to its high interest liability burden which is in tune of INR 15.85 Crore, high overheads, mediocre production and dwindling sales. It was thus also unable to approach financial institutions for working capital. And because of above mentioned factors R&C inspite of making gross profits in last 3 years has not been able to register profit. All these factors contributed in making the company sick and hence it was referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE) for its revival. Vision/Mission To grow and become a major engineering enterprise catering to core sector of economy.
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Objectives (of the company) i. ii. iii. To increase production/sales by 10% over the previous year Enhance employee productivity by 10% during next year Reduction in overdue outstanding (excluding amount locked in court cases) by 15% over the current level iv. Consolidation of production facilities at two locations (Nagpur & Chennai) and readying for sale of fixed assets of Mulund and Byculla at Mumbai. Board of Directors Shri. P K Kothari Chairman & Managing Director Richardson & Cruddas (1972) Ltd.

Shri. R K Singh Government Director Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India

Shri B L Kureel Government Director Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, Government of India

Shri. Kewal Ram Non Official Director

Nature of Industry R&C is a manufacturing industry which is majorly involved in fabrication of various process equipments, chemical machinery etc.

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Product Profile Richardson & Cruddas has a diversified product profile which is given below: Fabrication and Galvanizing C.I. Casting Sugar Mill machinery Rubber Mill machinery Railway Points and Crossing Hand Pumps Chemical Machinery Refrigeration Equipment Refrigeration Compressor Unit Miscellaneous Industrial Machinery Projects

Unit Richardson & Cruddas has four manufacturing units, two located in Mumbai at Byculla and Mulund, one at Nagpur and one at Chennai. Installed Capacity R&C has a standard installed capacity for a range of products. R&C has an installed capacity for more than 10 products ranging from fabrication and galvanising to hand pumps, chemical machinery to refrigeration equipments etc. But it has not been able to perform at its level best and a very less of the said installed capacity is utilised leading to a very low efficiency that is also a contributing factor to its losses. (Refer Table 1.1) Capital Structure R&C has an authorised capital of 6,500 lacs that consists of 4,00,000 equity share of Rs. 1000 each and 2,50,000 , 8% redeemable non-cumulative preference share of Rs. 1,000 each. (Rs. In Lacs) Authorized Capital 400,000 Equity shares of Rs. 1000/-each 250,000 8% Redeemable Non-cumulative Preference shares of Rs. 1000/-each 2,500.00 4,000.00

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6,500.00

It has issued subscribed and paid up capital of Rs. 5,483.53 lacs that consists of 3,15,753 equity share of Rs. 1000 each and 2,32,600 , 8% redeemable noncumulative preference share of Rs. 1,000 each. Issued, Subscribed & Paid-up Capital 315,753 Equity shares of Rs. 1000/-each 232,600 8% Redeemable Non-cumulative Preference shares of Rs. 1000/-each 2,326.00 5,483.53 Ownership Pattern5,48,353 fully paid shares are held by President of India through his nominee and only one fully paid equity share is held by Managing Director. Annual Turnover (Product wise) Annual turnover over the company stands at 2,908 MT of fabrication and galvanising works at shops and 16,800 MT at sites and manufacture of 280 handpumps and 4,861 MT of chemical machinery in the financial year 2010-11 as against 3,239 MT of fabrication and galvanising works at shops and 16,800 MT at sites and manufacture of 452 handpumps and 4,293 MT of chemical machinery in the financial year 2009-10. (Refer Table 1.2) Market Share (Product wise) : R&C has a market share of 1.2 % in its product segment that is diversified. Sales (Product wise) R&C has a gross sales figure of Rs. 9,153.63 lacs in the financial year 2010-11, Rs. 9,169.54 lacs in 2009-10 and Rs. 8,136.76 lacs in the year financial year 2008-09. And for this year the company has bagged orders of Rs. 15,500 lacs. (Refer Table 1.3) Profile of Customers National
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3,157.53

All India Radio, Larsen & Toubro Limited, Balmer Lawrie and Co., Mazagon Dock Limited, Bharat Dynamics Limited, National Thermal Power Corporation Limited, Bharat Electronic Corporation of India Limited, Bharat Heavy Electricals Limited, Nuclear Power Corporation Limited, Bharat Heavy Electricals Limited, TBG, Power Grid Corporation of India Limited, Bharat Heavy Electricals Limited ,Salem Steel Plant ,Bharat Heavy Electricals Limited, Sitson India Private Limited, Bharat Heavy Electricals Limited, State Electricity Boards, Chennai Port Trust, Thermax Limited, Hi-Tech Engineering Corpn. India Private Limited, Visakhapatnam Port Trust, Indian Oil Corporation Limited, Visakhapatnam Steel Plant, Visakhapatnam, Jindal Steel Limited, Bellary Industries Limited, Kilburn Engineering Limited International

R&C has no international customers

2. Objectives of the Study The objectives of the study are to:i. ii. Learning The Case Writing method and Project Appraisal. Understand the operational structure of Public Sector Enterprise and Richardson & Cruddas(1972) Limited. iii. iv. v. To get acquainted with style of PSEs functioning and R&C. Study the intent and broad vision behind establishment of various PSEs and R&C. Explore various competitive and distinctive advantages of R&C over their industry peers. vi. vii. Analyze and compare the key performance indicators of R&C. Study the style of functioning of R&C due to which it had Turnaround through the winds of change. viii. Analyzing the growth and contribution of R&C to Fabrication & Manufacturing Industry.

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3. Research Methodology Objective of Research: The main objective of the research is to find the ground reality of the Turnaround strategy and the futures prospects of growth of the R&C in context with its competitors. Collection of Data: Data was collected from secondary sources such as by referring to the Organization official website and other websites, journals, Books, reports, Centre for Monitoring Indian Economy, Company & Competitors Annual Report etc. Evaluation and Analysis the Data: The data collected is analyzed through various methods such as financial ratios and other statistical tool. Comparison has been made with company itself (year wise) and also with Competitors- Technofab Engineers and Omega Construction Equipment Ltd. The presentation style is of case study for the Analysis. Preparation of the report: The Case Study format is being followed for the preparation of the Report. The reported will be presented in a condense form but with detailed information keeping the world limit as provided by the mentors.

4. Competition Competitors and their Market Share The company faces stiff competition from the private sector; main competitors being Tirupati Structurals Ltd and Steel Products Ltd. Market share of Tirupati Structurals Ltd. is 2.06% and that of Steel Products Ltd. is 1.48%. Being a 100 years old firm R & C enjoys an edge over its competitors. Also, the company is backed by the confidence of many successful projects in the past history thus; it gears out its name from the competitors. The competitors cut through the competition by their huge capital investment and their efficiency in operation wherein they cut costs in the operating expenses. The advantage they enjoy is the latest technology and the commitment to complete the task within stipulated time frame ensuring the proper quality mark-ups. For Competitive edge of Own Company and of Competitors; like Technology adopted Market Share
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 (Refer Table 4.1)

Product Mix Advertisements Customers profile (National/ International) Research & Development

5. Financial Gearing: Finance is said to be life blood of any organization. In terms of financial data, the companys performance can be tested. Thus, financial data over the years act as a performance calculator of the company itself. The companies were tested on parameters of Input consumption and the Cost of Production. In input consumption we tested the efficiency of consumption wherein the processing and consumption of raw materials to produce finished goods was judged. In cost of production, we take in the total cost involved in various steps of production. This analysis is of huge importance to the company to ascertain which department is incurring high costs and where can cost control methods be implemented. (Refer Table 5.1, 5.2) Annual PBIT and PAIT (Profit/Loss) PBIT is profit before interest and tax and for the financial year 2010-11 for R&C is Rs. 950.46 lacs and and Rs. 441.77 lacs in the year 2009-10. In the same period PAIT for R&C stands at Rs. (2,155.04) lacs in the year 2010-11 and for the year 2009-10 it was Rs. (2737.66 lacs). This shows that it is reducing its losses and although it is able to register gross profit it is reeling under the stress of huge debt and the intrest paid to that debt eats away the profit making it a loss making unit. (Refer Table 5.3) Expenditure Pattern The company has shown a steadiness in the expenditure pattern over the last 3 years although it had decreased the administrative expenses form substantially from Rs. 340.87 lacs in 200809 to Rs 227.68 lacs in 2010-11 and manufacturing and selling and distribution expenses
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have remain almost the same with minor changes. This shows the company is trying to cut down the extra expenses that were not profitable for the company. (Refer table 5.4)

6. Human Resource Management The companys backbone is always considered its Human Resource. The employees working for the company and their commitment towards the achievement of the companys goal ensures the success of the organization. But it also involves a lot of cost for a company. As the company was sick and government agencies such as, BPRSE, were designing its revival strategy, they decided to cut down the operational cost by providing Voluntary Retirement Scheme (VRS) to about 400 employees. Moreover the number of employees in the company exceeded the required number i.e. There was an overallotment and the company reeled under the pressure of paying that many number of employees. Since then the number of direct employees has been gradually decreasing. As per data, company has 59 direct employees in year 2010-2011 as compared to 488 direct employees in 2001-2002. Age of superannuation in this company is 58 years. (Refer Table 6.1) Gross Salary and Wages The gross salary/wages amounted to Rs. 142.55 Lacs in 2010-2011 and Rs. 131.16 in year 2009-2010. As on 31st March 2011, the gross gratuity paid by company is Rs. 18.30 Lacs as compared to 32.78 Lacs in previous year and contribution to Provident fund amounts to Rs. 18.22 Lacs in year 2010-2011 as compared to 12.03 Lacs in year 2009-2010. Employees Production/hour a. Per Employee Turnover Per Employee Turnover is on constant rise as can be observed from the last 3 years . this shows the company is making remarkable improvements. Per Employee Turnover stood at Rs. 141 lacs in the year 2010-11 compared to Rs. 137.88 lacs in year 2009-10. (Refer Table 6.2) b. Per Employee PBIT
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Per Employee PBIT for the company stands negative at Rs. (-36.53) lacs compared to Rs. (45.63) lacs in 2009-10 which is gradually decreasing. (Refer Table 6.3) c. Per Employee PAIT Per Employee PBIT for the company stands negative at Rs. (-36.53) lacs compared to Rs. (45.63) lacs in 2009-10 which is gradually decreasing. (Refer Table 6.4) There is no data available for the average age of the employees. Hiring There has been no hiring process in the company in the last 5 years. Superannuation Payment consists of Gratuity, Provident Fund and Family Pension Fund. Total amount in this account for the company in the financial year 2010-11 stands at Rs 36.52 lakhs and Rs. 44.82 lacs in the year 2009-10. (Refer Table 6.5)

7. Energy Management Energy Consumption The company R&C is not energy intensive. However energy audits were made by the units of company. Nevertheless all possible efforts are being made to reduce energy consumption and costs and same have been under control. Expenses occurred for power and fuel during the year 2010-11 stood at Rs. 203.07 lacs as against Rs. 166.58 lacs in the year 2009-10. This was contributed mainly by the increase in prices of the power and fuel.

8. R&D and Technology As a part of R&D, Richardson & Cruddas carries out Environmental Impact Studies for various clients at their Chennai unit.
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Richardson & Cruddas intends to set up Testing Laboratory, Environmental Lab, etc. in 1300 sq. ft. readily available laboratory with DT/NDT testing equipment at Byculla/Mulund in Mumbai, Nagpur and Chennai on revenue sharing basis. For this, they have floated a tender on 31/05/2013 for all the units.

9. Valuation i. Annual Market Price of Shares and Book Value of shares: All shares of the company are held by the President of India through his nominee thus the market value of the share cannot be ascertain whereas the book price of equity share and preference share is Rs. 1000 each. ii. Value addition(Financial terms)- Input/output Ratio

Efficiency of the company stood at .833 in the year 2010-11 as compared to .812 in the year 2009-10 (Refer Table 9)

10. CSR Activities and Environment Protection: The Company is fully committed to prevent pollution and protect environment. Afforestation was done in vacant land of Nagpur and Mulund units. There was Pollution control equipment already installed in Nagpur unit to safeguard health hazard arising out of galvanizing activities which was reported in good and sound condition by the auditor himself.

11. Challenges and Issues Accumulating heavy interest on loans: Supporting its financial needs, Richardson & Cruddas took heavy loans. There was a loan of Rs. 36857.32 lacs from Government of India, which was at a rate of interest in range of 14.50% to 22.25%. Also these loan amount included Rs. 14841.98 lacs overdue as regards repayment of principal and interest. Not only this A Government of India loan of Rs. 400 lacs which was granted in 1999 pursuant to BIFR order sanctioning rehabilitation scheme was to be interest free.
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However this did not happen and the company auditors have observed that interest have been charged on this loan from inception till March 31, 2011 aggregating to Rs. 1404.62 lacs. Also there is a difference of Rs. 1585.08 lacs in the balance of unsecured loans from Government of India as per Companys records vis--vis Government records. High rent cost of Mulund & Byculla Units: The nature and extent of encumbrances is not fully and completely known or ascertainable. The Byculla works of the company are situated on lease-hold presently belonging to Collector of Mumbai; the lease tenure has expired between 1974 & 2003. The Collector of Mumbai is in the process of revising its policy in respect of Government lands leased out and renewal of expired lease. Also, the properties of Mulund includes lease-hold land admeasuring 36087 sq.m., which was held under the Court Decree with the Bank of Maharashtra and expired on 1994. Based on negotiations, R & C had option to acquire reversionary interest for an agreed consideration of Rs. 70 lacs to be paid on or before March 31, 2005. The company was unable to pay the agreed considerations by the stipulated due date. Large product mix brings in large management issues: The Company holds a very deep portfolio of various product mix that it offers. Due to very limited number of employees, company faces huge problems in terms of management of the portfolio. It is better to say that company is Jack of all trades but master of none. Lack of Government Support & Bureaucracy: The disbursed remedial amount is still on papers and has not reached in the Company. Also, the earlier amount also was not properly disbursed. The interest free loan was charged with heavy interest. Change in policy requires a lot paper work thereby decreasing the operational effectiveness. Competition: The industry is at its saturation point wherein the profit can be met only by operational effectiveness and competitive advantage. There are N numbers of competitors in the market with a huge capital to an extent of 150% of Richardson & Cruddas. They also beat the company by their latest technology and project timely commitment. These factors lead a major drop down for the company. Such private players include Aditya Birla Nuvo, Jaiprakash Associates etc. Efficiency: The Company lacks on the part of efficiency. With its under production and less utility of installed capacity, company faces huge administrative costs. The

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actual production to installed capacity is as low as zero; this reduces the efficiency in operation for R & C and also is a major reason in setback for the company. The lack in number of employees and work area spread in four different locations adds up to the problems of company too.

12. Discussion The operational effectiveness of a company lies within the company itself. In case of Richardson & Cruddas it can be observed that the company is losing its effectiveness on the points above discussed. Further, in heavy engineering products a huge investment is required. Company is not following any policy for its marketing and relationship building. A proper Corporate Relationship Management department would help the company to acquire projects on a continuous basis. This can be concluded because despite severe losses company had booked orders worth 155 crore. A dedicated HR department to hold back the talent within the firm is also advisable, since company has limited number of employees their nurturing and creativity would play a major role in companys success. A complete reconstruction of capital is advised further so that company may come out of its financial crisis and thus may perform its operations. This structuring should be internally wherein the debt is to replace in form of equity. The company is advised to undertake joint ventures with other firms so that the expertise they have currently may be en-cashed and also cash inflows is continuous. Government Intervention in the companys crisis is crucial. If government activities are properly channelized, company would straight away come out of its phase of crisis. Therefore on the part of company and government the aforesaid remedies should be immediately disbursed which may act as a catalyst in companys growth and future performance. Turnaround strategy The BRPSE, which was set up in 2004, is an advisory body to the government on revival and restructuring of sick PSUs. For restructuring and revival of sick R&C some of the strategies adopted by the Government are - Financial restructuring, Business restructuring and Man Power Rationalization. Financial restructuring involves investment in CPSEs by the Government in the form of equity participation, providing loan (plan/non-plan)/grants and/or write-off of past losses as well as changing the debt equity ratio. Measures such as waiver of loan /interest/penal interest, conversion of loan into equity, conversion of interest including
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penal interest into loan, moratorium on payment of loan/interest. Government guarantee, sale of fixed assets including excess land, sacrifices by State Government, one-time settlement with banks/financial institutions, etc. BIFR (Board for Industrial and Financial Reconstruction) have sanctioned revival schemes for R&C. The government of India sanctioned a loan of INR 400 Crore in 1999 on persuasion of BIFR intended to be interest free but interest were charged on that loan that aggregated to INR 14 crore. This issue has been taken up with Department of Heavy Industries and is pending. In yet another strategy for its survival R&C resorted to Voluntary Retirement Scheme (VRS) in 2002 and the manpower employed in R&C was gradually decreased. It has limited its operations and has taken aid of contractual workers for its operations and almost 400 employees were forced to take VRS. In one of the strategies in August 2011, bids were invited to take over and revive the sick Richardson & Cruddas, which has large chunks of prime real estate in Mumbai. The offer letter stated that firms interested in reviving the company should have experience in similar industry. But in recent developments BPRSC has recommended the Government to shut down its operations in Byculla and Mulund unit and shift their operations to Nagpur unit. In yet another strategy for its survival CPSEs have resorted to Voluntary Retirement Scheme (VRS) from time to time and the manpower employed in R&C has gradually been decreased and has limited its operations and has taken aid of contractual workers for its operations and almost 400 employees were forced to take VRS. In the recent development the company has entered into a business transaction with J Kumar Infrastructure Pvt Ltd at Byculla unit and is planning to enter into a joint venture arrangement with A2Z Maintenance and Engineering Service Ltd, Case Cold Roll Forming Ltd and others at Nagpur unit. Although none of the above strategies have shown any visible positive impact on the profitability of the company as most of them are yet to be implemented, the company may have shed a ray of hope by showing positive gross profit and thereby decreasing the losses. Also the company has bagged orders of INR 155 Crore in the last financial year.

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Reference (n.d.). Retrieved oct 2013, from Department of Heavy Enterprises: http://dpe.nic.in/brpse/recommendedbrpse (n.d.). Retrieved october 2013, from Richardson & Cruddas Ltd: http://www.richardsoncruddas.com/ (n.d.). Retrieved october 2013, from Richardson & Cruddas Ltd: http://www.richardsoncruddas.com/index.php/ct-menu-item-2 (n.d.). Retrieved october 2013, from Richardson & Cruddas Ltd: http://www.richardsoncruddas.com/index.php/ct-menu-item-2 (n.d.). Retrieved october 2013, from Richardson & Cruddas Ltd : http://www.richardsoncruddas.com/index.php/ct-menu-item-8 (n.d.). Retrieved november 2013, from Richardson & Cruddas Ltd: http://www.richardsoncruddas.com/index.php/ct-menu-item-10 (n.d.). Retrieved october 2013, from Department of Heavy Industry : http://dhi.nic.in/role.html Bharucha, N. k. (2011, november 12). Retrieved october 2013, from RESSEX: http://ressex.blog.com/2011/11/12/rogecosol/ K , N. B. (2011, november 12). Retrieved oct 2013, from The times of India: http://articles.timesofindia.indiatimes.com/2011-11-12/mumbai/30390900_1_revivalpackage-revival-plan-bifr (2006). Notice of : Annual General Meeting with Enclosers. Sansco Services. (2012, april 20). Retrieved october 2013, from Press information bureau : http://pib.nic.in/newsite/efeatures.aspx?relid=82408 Centre for Monitoring Indian Economy Pvt. Ltd. (n.d.). Retrieved November 2013, from CMIE: http://www.cmie.com/ Department of Heavy Industry & Richardson & Cruddas Ltd . (2012). Memorandum of Understanding 2011-12.

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Department of Heavy Industry. (2011). 38th Annual Report. (1993). In B. D. Kolekar, HRD: A Study of Selected Public Sector Undertakings in Maharashtra & Goa (pp. 10-13). Northern Book Centre .

Malik, A. (2007, october 7). Retrieved october 2013, from Business Today: http://businesstoday.intoday.in/story/land-sale-for-psu-revival/1/596.html

Ministry of Heavy Industries and Public Enterprises. (2010). Annual Report 2009-10. Government of india .

Ministry of Heavy Industries and Public Enterprises. (2011). Annual Report 2010-11. Government of India .

Ministry of Heavy Industries and Public Enterprises. (2012). Government of India Outcome Budget 2011-12.

Mishra, R. (2002, february 20). Retrieved oct 2013, from Business Line: http://www.thehindubusinessline.in/2002/02/21/stories/2002022101520400.htm

Richardson & Cruddas Ltd . (2013, may 31). Tender for TESTING LABORATORY, ENVIRONMENTAL LAB.

Roy, A. (2009, july 6). Retrieved oct 2013, from The times of India: http://articles.timesofindia.indiatimes.com/2009-07-06/nagpur/28156871_1_ntpc-andbhel-nagpur-unit-mahagenco

TNN. (2005, november 5). Retrieved oct 2013, from The Economic Times: http://articles.economictimes.indiatimes.com/2005-11-05/news/27510711_1_sickpsus-revival-packages-praga-tools

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ANNEXTURE Table 1.1: Installed Capacity of R&C Sl. No. 1 2 3 4 5 6 7 8 9 10 Product Fabrication and Galvanizing C.I. Casting Sugar Mill machinery Rubber Mill machinery Railway Points and Crossing Hand Pumps Chemical Machinery Refrigeration Equipment Refrigeration Compressor Unit Miscellaneous Industrial Machinery Units MT MT Nos. Nos. ETOs Nos. MT Nos. Nos. MT Installed Capacity 28300 3000 470 35 1800 20000 2960 100 4000 Mfg. from existing capacity

Table 1.2: Annual Turnover of R&C(Product wise) : Sl. No. 1 Fabrication and Galvanizing - at shops - at sites 2. 3. Hand Pumps Chemical Machinery Nos. MT MT 2908 16800 280 4861 3239 16800 452 4293 Product Units Actual Production 2010-2011 2009-2010

Table 1.3: Sales (Product wise In Lacs) Sl. No. 1 Structural (Fabrication, Galvanizing, etc.) 2 Chemical Machinery MT 4861 3,515.08 4293 3241.18
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Particulars

units

2010- 2011 Quantity

2009- 2010 Value 4,200.57

Value Quantity 3,879.80

MT

Refrigeration spares & Mechanical jobs

0.08

0.63

4 5 6 7

Public Health Hand Pumps Projects Spiral Casings Nos. 280

271.54 50.77 452 47.43 248.46

254.42 90.01 6.35 199.55

Table 4.1: The different criteria on which R&C and its competitors (Tirupati Structurals Limited and Steel Products Limited) are compared. Criteria R&C Tirupati Structurals Steel Limited Market Share in % Product Mix Fabrication Galvanizing C.I. Casting Sugar Mill machinery Rubber Mill machinery Railway Crossing Hand Pumps Chemical Machinery Refrigeration Equipment Refrigeration Unit Miscellaneous Machinery Points and plastic and rubbers -pvs/hdpe pipes -pvc foam/sheets -water tanks machinery>>nonand electrical -hand pumps construction & allied activities -construction of steel fabrication -galvanising -tower testing -structural fabrication 1.2 2.06 Limited 1.48 Products

Compressor buildings services Industrial -supply of construction -trade & commissioning agents' services

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Advertiseme nt(cost INR) Customers Profile in

40,000

NIL

NIL

All India Radio, Larsen & Toubro Limited , Balmer Lawrie and Co., Mazagon Dock Limited, Bharat Dynamics Limited, National Thermal Power Corporation Limited, Bharat Electronic Corporation of India Limited, Nepal Electricity Authority, Bharat Heavy

Shyam Power India Delhi Jal Board, Ltd, Itit Ltd, Powergrid Corporation Of India Ltd, BSNL, HCL Reliance Energy Ltd

Crompton Gujarat Water Supply Board Noida Authority,

Greaves, Siemens Abb Bengal Electricity Essar Group Reliance Ltd, West

State U.P. Jal Nigam Board, Pey Jal Nigam, Dehradun

Electricals Limited, Nuclear Infrastructure Power Corporation Limited Bharat Heavy Electricals Limited, TBG Power Grid Corporation of India Limited, Bharat Heavy Electricals Limited ,Salem Steel Plant ,Bharat Heavy Electricals Limited, Sitson India Private Limited Bharat Heavy Electricals Limited, State Electricity Boards, Chennai Port Trust, Thermax Limited, Hi-Tech Engineering Corpn. India Private Limited, Visakhapatnam Port Trust, Indian Oil Corporation Limited, Visakhapatnam Bhel Bsnl Ltd A2z Maintainace & Engineering Meghala State

Electricity Board

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Steel Plant, Visakhapatnam Jindal Steel Limited, Bellary, Industries Limited Kilburn Engineering Limited Research & As a part of R&D, R&C Highly qualified and The Developmen t plant has a

carries out environmental innovative team of modern

galvanising

impact studies for various researchers to find plant with a shed clients at their Chennai Unit out the actual reason area of 1400 sq.

It intends to set up testing for a cause. They metres. A covered laboratory, environmental also assist in drying chamber suitable material eliminates

lab, etc in 1300 sq feet improving the quality ensures readily available lab with standard DT/NDT Testing Pumps, of Pipes the drying of & which

Equipment at all their 4 Fittings,

Water zinc splashing and a safe

units on revenue sharing containers & storage provides basis. For this they have tanks and introducing working floated a tender

on new products . They environment. also help

The

31/05/2013

in galvanising plant has the 3 EOT cranes which process help maintain

streamlining production and utilization resources. Technology Adoption NIL

optimum optimum prodn level. of

Tirupati believe in a NIL sustained process of innovation diversification and of

their products. The company employs

modern machines in its process to ensure smooth and flawless

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Table 5.1: Input consumption of R&C and its competitors (Tirupati Structurals Limited and Steel Products Limited in INR Lacs) Company R&C Tirupati Structurals Limited Steel Products Limited 2010-11 524.18 1073.8 340.3

Table 5.2: Cost of production of R&C and its competitors (Tirupati Structurals Limited and Steel Products Limited in Lacs) Company R&C Tirupati Structurals Limited Steel Products Limited 2010-11 729.61 11683 449.3 2009-10 732 13065 413.8 2008-09 735.16 10662 997.5

Table 5.3: Annual PAIT & PBIT of R&C(in Lac) Year PBIT PAIT 2010-11 950.46 -2155.04 2009-10 441.77 -2737.66 2008-09 75.86 -3026.87

Expenditure Pattern: Table 5.4: Expenditure pattern of R&C(in Lacs) Year Manufacturing expenses Administrative expenses Selling and distribution expenses 2010-11 729.61 227.68 27.17 2009-10 732 285.42 25.84 2008-09 735.16 340.87 24.32

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Table 5.5: Expenditure Pattern of Tirupati Structurals Limited (in INR lacs) Year Manufacturing expenses Administrative expenses Selling and distribution expenses 2010-11 11683 1315 440 2009-10 13065 2177 350 2008-09 10662 2257 167

Table 5.6: Expenditure Pattern of Steel Products Limited(in INR Lacs) Year Manufacturing expenses Administrative expenses Selling and distribution expenses 2010-11 384 74.6 14.4 2009-10 444.1 78.5 13.6 2008-09 391.5 85.2 12.5

Table 6.1: Number of Direct employees of R&C Year Number of Direct Employees 2010- 2009- 2008- 2007- 2006- 2005- 2004- 2003- 2002- 20012011 2010 2009 2008 2007 2006 2005 2004 2003 2002 59 60 65 68 73 74 77 77 449 488

Table 6.2: Per employee Turnover of R&C Year Per Employee turnover 2010-2011 141.0025 2009-2010 137.88 2008-2009 113.65

Table 6.3: Per employee PBIT of R&C(in Lacs) Year 2010-2011 2009-2010 2008-2009
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Per Employee PBIT

-36.53

-45.63

-46.569

Table 6.4: Per employee PAIT of R&C(in Lacs) Year Per Employee PAIT 2010-2011 -36.53 2009-2010 -45.63 2008-2009 -46.615

Table 6.5: Superannuation payment of R&C(in Lacs) Superannuation payment Gratuity P.F & F.P.F Total 2010-2011 18.30 18.22 36.52 2009-2010 32.78 12.03 44.81

Table 9.1: Input/output ratio of R&C Year Efficiency 2010-11 .833 2009-10 .812 2008-09 .724

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