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Lifting hopes: Planning for a turnaround
Macneill Engineering Ltd has been a forerunner in manufacturing of forklifts and other material handling equipment in the country. The company hopes to post a turnaround in 2005 and has embarked upon an ambitious target of achieving a turnover of Rs 50 crore by end-2006. A strong brand equity and a near monopoly in making of battery operated forklifts had attracted the current management, led by its chairman Pradip Churiwal, to take over the company from the Khaitans in January 2004.
According to Mr Churiwal, an unwarranted delay in executing orders and an “extra cushion” provided by the former management had pulled the company down over the years. However, having cleared the backlog and trimmed the workforce, the company is gung-ho on the prospects for 2005 as it prepares to despatch the first consignment of 78 fire-proof forklifts for engineering heavyweight L&T. The order is estimated at Rs 14 crore.
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“We have developed this special air-tight forklifts for L&T for the first time in the country. So far imported from Germany, it is ideal for use in high risk or Zone 22 areas,” says Mr Churiwal.
“Our competitors have made inroads simply because we did not cater to them on time. It is simply a matter of time before we begin winning back those customers who have shied away from us,” says Mr Churiwal.
New Growth Areas
Macneill has identified forklift leasing as a new revenue earning model. The company is in talks with IPCL and Indo Rama for leasing out forklifts. Macneill is also entering the spares and after-sales services business by floating a subsidiary called Macneill Forklift Services Ltd by the end of the current fiscal. The company estimates the size of the spares business to be in the region of Rs 8 crore a year. It is also bullish on the prospects of material handling equipment like hand pallet trucks.
Although the company has not changed its product-mix after the change in its management, the focus will remain on introduction of new equipment handling tools in the future. “Macneill always banked on big customers and the effort will be to retain them and bring in new ones. But the focus for the time being will be on stabilising the operations,” says Mr Churiwal.
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Another new area that Macneill will be entering soon is battery operated auto-rickshaws. Ideal for plying short distances, Macneil plans to develop a prototype of this vehicle within the next three months.
Export Thrust
Macneill Engineering is exploring the possibility of sending export consignments to the neighbouring countries like Bangladesh, Nepal and Sri Lanka. While it has already exported forklifts for use at Tribhuban airport in Kathmandu, talks are currently on for appointing an agent in Sri Lanka.
“Sri Lanka is an untapped market. Currently all their requirements are imported and there are no forklift manufacturers in that country. Since we also have a free trade agreement with Sri Lanka in place, our products will be significantly cheaper,” says Mr Churiwal.
HR Focus
Employee motivation has played a key role in bringing about a turnaround in the company. Says Mr Churiwal, “The employees were pampered with a lot of benefits by the previous management. After repeated meetings with the unions, we had to convince them that the curtailing of certain perks and benefits were actually for their own good. We trimmed the workforce but recalled some old hands which went down well with the company employees.
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