Financial Daily from THE HINDU group of publications
Saturday, Jan 26, 2002
Financial Daily from THE HINDU group of publications Saturday, Jan 26, 2002 |
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Corporate
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Outlook Esab hopeful of two-fold rise in export income Our Bureau
MUMBAI, Jan. 25 ESAB India Ltd may see export earnings double after production from the group's Thailand unit is shifted to the Kolkata welding factory, Mr Sanat Bhattacharyya, Managing Director, told Business Line. The £632.4-million Esab Group, which belongs to the UK-based Charter Plc group, recently decided to wind up its Thailand unit and shift the entire production to Kolkata. The company's Indian arm at present exports engineering equipment of about Rs 6.5 crore to markets in West Asia, Sri Lanka, Bangladesh and Africa. "This is a prestigious assignment for the Indian arm. This essentially doubling of our exports during the second half of the calendar year and providing us access to all Esab markets worldwide," Mr Bhattacharyya said. The company can now export welding instruments to markets in Japan, the US and the UK, he said. The Rs 159-crore company has seen intensive restructuring over last decade and has acquired ISO 9001 and 14000 certificates for all of its four units. After suffering a loss of Rs 19 crore in 1999-00 during the peak of restructuring, it recovered to post a net profit of Rs 10 crore in the fiscal year 2000-01. "We have cut our workforce to 660 from 1,600 in the beginning of the 1990s decade," Mr Bhattacharyya said. "We have been seeing a slowdown in business with all-time low investments in infrastructure sectors such as steel. But the decision to shift the Thai welding unit to India will ensure that we have exports to fall back on," he said. The voluntary retirement schemes in Esab units spread over Pune, Nagpur, Kolkata, Chennai and Mumbai will continue till restructuring is completed to achieve an ideal size of 500 employees. The company has also decided to establish an India region, Mr Bhattacharyya said.
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