Bharat Pumps and Compressors Limited is a public sector corporate enterprise incorporated in 1970 with a manufacturing facility at Naini, Allahabad. It was mandated with the task to research, design and develop, manufacture and supply capital goods in the fluid handling field to cater to the need of oil exploration and exploitation, refineries, petrochemicals, chemicals and fertilizers, power sectors and process and downstream industries. Bharat Pumps and Compressors Limited (BPC) is the only company in Asia to manufacture a wide range of hi-tech products, heavy duty pumps, compressors and high-pressure, seamless and welded gas cylinders, under one roof. The company’s chairman and managing director AK Jain spoke to Hindustan Times on a range of issues. Excerpts:
Can you elaborate on the product range of the company?
BPC caters to the need of the core sector of the economy, such as oil exploration, refineries, petrochemicals, chemicals and fertilizers, process industries and power plants. It designs and manufactures heavy duty centrifugal pumps, reciprocating pumps, reciprocating compressors and other hi-tech oil field equipment such as cementing units and sucker rod pumps, among others.
BPC was a sick company, till recently. What were the main reasons?
BPC had suffered losses consistently since its inception in 1970. They had aggregated to Rs175.29 crore. The net worth of the company, as on March 31, 2005, was negative at Rs121.61 crore and it had been referred to the Board of Industrial and Financial Reconstruction (BIFR). Employees had lost the zeal to work, as the company could not achieve the required production or obtain orders to maintain even a working business cycle. It was on the verge of being closed down, on account of losses for about 35 years, till 2004-05.
How did the turnaround take place?
In 2005-06, revival strategies put in place during the last quarter yielded the much-awaited turnaround. This was made possible through dedicated and sustained pursuit of revival strategies and following the fundamental concepts of excellence, with emphasis on participative management. Subsequently, we achieved a net profit of Rs1.82 crore during 2005-06. We took initiatives towards excellence in areas of quality, cost, delivery and services and action plan. During the last six years, the turnover has increased from Rs70 crore in 2004-05 to R211 crore in the year 2010-11.
What were the major enablers for this turnaround?
The major enablers for the turnaround have been our employees, our customers who reposed confidence in our equipment, the revival plans approved by the government and positive support for initiatives taken to achieve this performance. We learnt that to get help from outside, we have to help ourselves, first. Participative management helps in good governance and good governance ensures that employees at all levels change their role to partnership and trusteeship in the growth of the organisation.
Who are your main customers?
Our main customers are Oil and Natural Gas Corporation, Indian Oil Corporation, Gas Authority of India, Indian Petrochemicals , Oil India Limited, Bharat Petroleum Corporation, Engineers India Limited and Indraprastha Gas, among others.