Batliboi trims workforce by 70%, debt down 90%

Diversified engineering company Batliboi, in a restructuring exercise, has reduced its workforce by 70 per cent, pruned its debt burden by around 90 per cent and has exited non-core business operations.

Post-restructuring, the Rs 200 crore group is expecting a 25 per cent growth in its topline in the current financial year against a 10 per cent growth in the previous year.

The company's employee strength now stands reduced from 2,300 to 700 and its debt is reduced from Rs 45 crore to Rs 5 crore. The company has also seen a capital infusion of Rs 10 crore made by the promoter group.

It has discontinued its engineering trading business. Machine tools, textile engineering, air conditioning and environmental engineering are the company's core areas of operation.

Nirmal Bhogilal, managing director, Batliboi, said, "Exports would be the company's primary growth driver. We have entered into a contract with a Czech and an Italian engineering company wherein we would be manufacturing a complete range of machines for them. We are also in talks with several other foreign companies for contract manufacturing and sale and distribution alliances."

He, however, refused to divulge the names of the international partners. "Machine tools industry in India has seen rough weather in the recent past and many leading companies have gone out of business. With a recovery in the capital goods industry and an expected growth in GDP, we envisage a healthy future. Also, an expected healthy growth in the textile sector will enable us realise our growth plans," Bhogilal added.

While Batliboi's exports are currently in the range of Rs 10 crore, it expects its export turnover to exceed Rs 60 crore in the next 3-5 years.

The company exports its product range to the US, Europe, Australia and the Middle East besides other countries.