Rane Engine Valve management is focused on new Business Development and restructuring to reduce costs in order to enable the company to be in a better position to return to profitable operations in the next financial year 2014-15. Besides, the power situation in Tamil Nadu and Andhra Pradesh improved considerably during half year ended September 30, 2013 thereby giving relief to operational costs and also providing for stable operations.
The company’s plants in Andhra Pradesh reduced their power costs by 20% compared to Q4/2012-13. Rationalization of Alandur Plant is in progress, with capacities being redistributed between Trichy and Ponneri plants.
The company had a turnaround in its operations in the second quarter with costs under strict control enabling the company to make operational profits before exceptional items. The company realized savings of 2% on account of localization and alternate sourcing during the period. The company has been targeting new customers and markets and has secured new business worth Rs 43 crore during the period under review.
Further, the company had extended VRS scheme to all the employees of Alandur Plant with a payout Rs 40.76 crore. This VRS is part rationalization of plant capacities to become cost-efficient. The benefits of the same will accrue to company in years to come.
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