The touch that turns around companies

CAPTAINSPEAK/M P SINHA

At the helm of a company that has made a remarkable turnaround in the past two years or so, is M P Sinha, managing director of Gujarat Steelco Ltd.

Sinha was instrumental in converting loss-making units of Bokaro plant of SAIL and Salem Steel into profit-making enterprises. He has also worked with the Pune-based SPSL and ISPAT Industries before taking over as the managing director of Steelco Gujarat Ltd on September 29, 2000.

Sinha spoke toBusiness Standard on his experience in the steel industry and plans for Steelco Gujarat.

You are known in the industry as the 'turnaround man'. How appropriate is this description?
This is perhaps because of my earlier stints, where loss-making units were transformed into profitable enterprises. The Bokaro unit was known as the sick child of SAIL when I was posted there. The story was much the same in the case of Salem Steel. I love taking up challenges.

What, according to you, is the most important factor behind your success?
I think everybody has weaknesses, but the strength of the team leader is known only through the collective strength of the people he works with. I have always tried to bring out the best from my workers. If the company does well, its workers stand to gain the most.

How has your stint with Steelco Gujarat been different from the rest?
My work at Steelco Gujarat has not been different from the rest, except that this has been the most challenging assignment till date. I have always told people that there are four gods and if they are kept happy, you will always be happy. The four are stakeholders, employees, customers and suppliers. That is my philosophy and I believe it has worked well till date.

What are your future plans for Steelco Gujarat?
To begin with, the galvanising plant of the company, which at present has a capacity of 30,000 tonnes per annum, will be upgraded to 78,000 tonnes per annum. A new galvanising line with a capacity of 48,000 tpa is being set up and this will be operational by March.

We will invest over Rs five crore into the project and expect to break even within 18 months of the project being operational. Gujarat Steelco manufactures cold rolled steel and galvanised products at its plant at Palej GIDC in Bharuch district of Gujarat, exporting about 65 per cent of its total production.

Observing the fiscal year from October 1 to September 30, the company has registered profits in three successive quarters ended June 30, 2003.

The company expects to target a turnover of over 400 crore, up around Rs 150 crore compared to the turnover in the year ending September 2002. It also is aiming at a profit of over Rs ten crore in the year ended September 30, 2003.

A couple of innovations have been experimented at the company, which have paid off well.
Yes. We set up a fountain just beside the galvanising unit, which not only adds to the beauty of the place, but also actually serves the purpose of cooling the water that is used in the process.

Also, we have installed solar cells that are used for heating water. The payback period for these small innovative projects was surprisingly quick and we intended to expand these further.

What are the achievements in exports?
We have a basket of about 50 countries, with varying volumes of exports. But the domestic consumer is very important to us and the question is of striking the right balance between the two. We are looking to add value to our cold rolled steel sheets by increasingly galvanising these.