NEW DELHI: As things stand now, with the government under more and more pressure to provide a supportive environment to ailing central public sector companies (PSUs), the lesser-known Braithwaite & Co Ltd (BCL) makes a case for bringing more young and competent officers who won’t rock the boat to the helm of these PSUs.
In 2013-14, the Kolkata-based company was dealt a devastating blow when it suffered a Rs 42 crore loss because of a sudden fall in wagon prices. Since then, the company has been in the red with its future at stake as the government considered its closure.
However, things began to change in May 2018, when Yatish Kumar took charge as chairman and managing director. With just two decades of experience working with the Indian Railways in various capacities, a rarity in PSUs, the 43-year-old executed a turnaround for the firm in nine months. Braithwaite now aims to be a ‘miniratna’ firm in the next five to six years.
With a robust order book, the company achieved a turnover of Rs 130.89 crore and posted a profit of Rs 3 crore in 2017-18. “By the end of this financial year, we expect to post double-digit profit,” Kumar said, adding that BCL estimates reaching a revenue of Rs 1,000 crore in 2019-20, with net profit standing in the Rs 25-27 crore range.
In order to revive the company’s fortunes, Kumar has attempted a hands-on approach in running its operations. His direct meetings with the staff and vendors set the tone for the day. One of the changes that modified the entire flow of operations was the obvious synergy, he said.
Explaining the potential of the products, Kumar said the company is now scouting for wagon orders from the non-railway sector, eradicating dependence on a single customer: the Railways. “We have bid for orders worth Rs 600 crore, half of which is from the Railways, and we expect to bag the orders soon,” said Kumar. Currently, BCL’s order book stands at Rs 488 crore.
While the better-known PSUs deliver on the bourses, BCL is one among the host of smaller state-run units that have been galloping down the runway to riches. At present, the company earns nearly 50 per cent of its revenues from wagon repairs. But, it expects to generate a major part of its revenues from wagon manufacturing.
“In FY18, we have built 530 wagons and we want to make 2,000 wagons in 2019-20. We have the capacity to do that,” said Kumar. The company was also trying to increase production at Victoria Works in Garden Reach and Angus Works in Hooghly’s Bhadreswar to bag steady returns. As the government speeds up its divestment drive, lesser-known entities such as BCL aim to further quicken their pace to reach the bourses.