BPL Engineering, belonging to the BPL Group, was incorporated in 1982, under the name Electronics Equipment Maintenance & Service Company. It was later renamed BPL Engineering Ltd and got converted into a public limited company.
It was incorporated with the objective of providing after sales service to BPL, Sanyo, and Fisher Products, the company now aims at providing engineering services to customers - both onsite and offshore.
The company is currently into the manufacture of cable wires, compressors, washing machine motors, speakers, transformers, power cords and coils.
The BPL companies, which are in for restructuring, include the flagship, BPL Ltd that mainly deals in CTVs, BPL Sanyo Technologies Ltd entrusted with audio systems, BS Appliances Ltd, BS Refrigerators Ltd and BPL Soft Energy Ltd. It is likely that component manufacturing -- currently catered to by the three entities, BPL Engineering Ltd, BPL Display Devices Ltd and Electronics Research Ltd -- will undergo consolidation.
History of the Company:
- 1982 - BPL Engineering Limited was incorporated on December 2, as a private limited company, under the name Electronics Equipment Maintenance And Service Company Pvt Limited under the Companies Act, 1956 and became a public company under the provisions of section 43 A of the Act, on May 28 ,1988.
- 1993 - The name of the company was changed to BPL Engineering Limited with effect from June 25, and a fresh certificate of incorporation was obtained and converted into a public limited company on the same date. The company was incorporated with the objective of providing after sales service to BPL, Sanyo and Fisher Products. Subsequently, the company diversified its activities into manufacture of components for video and audio products.
- 1994 - The company had brought out a public issue of 65,68,500 equity shares of Rs 10 each at a premium of Rs 65 per share and 33,00,000 equity shares of Rs 10 each at a premium of Rs 80 per share, aggregating Rs 78,96,37,500.
- The company ceased to be subsidiary of Celestial Finance Ltd, effective June 28, when the paid-up capital of the company increased to Rs1600.78 lakh.
- 1995 - Shri Ajit G Nambiar has been appointed as managing director of the company for a period of five years, from April 1.
- 1996 - The company has set up a new plant for manufacture of transformers by transferring the existing facilities to a new modernized shop.
- The company entered into a MOU with Sanyo Electronic Components Company Limited for technical assistance for state-of-the-art fully automated speaker plant.
- The company is availing technical know-how from Sanyo, Japan.
- 1998 - The company has issued 20.50% non-convertible debentures aggregating Rs 1,000 lakh to Industrial Credit and Investment Corporation of India Limited, Bangalore on a private placement basis.
- The company has issued 14.5% non-convertible Debentures aggregating Rs 500 lakh to Federal Bank Limited on a private placement basis.
- 2000 - The company planned to increase the authorized share capital from Rs 30 crore to Rs 40 crore.
- The company planned to issue up to 10,00,000 redeemable cumulative preference shares of Rs 100 each.
- 2002 - BPL Engineering Ltd has informed the Exchange that TPG Nambiar and Ajit G Nambiar have resigned as directors of the company effective July 30, 2002.
- 2005 - Delists equity shares of the company from the Ahmedabad Stock Exchange (ASE) with effect from January 28, 2005.
Recent Developments:
- BPL Engineering has selected Hyderabad-based Solix India to implement the Oracle Financials and Distribution suite at its manufacturing unit in Hyderabad and the same is to be implemented by the December-end, 2002.
- The company has recently decided to shut down the operations of its service division since the division was not getting adequate service compensation for servicing products of other manufacturing companies and the overheads failed to justify the turnover achieved.
- The BPL group had been considering acquisition of 51% stake in Shipping Corporation of India but pulled out since it was in the midst of debt recasting discussions with ICICI Bank-led consortium and decided not to pursue new strategic business initiatives for the time being.
- BPL Engineering Ltd has announced the holding of shares of Dynamic Electronics Ltd constituting 26.46% of the total capital
- New initiatives, like service at customer doorstep, customer profile initiated to call centre and follow up action, were taken by the Customer Care Division to enhance the service awareness and thereby creating sales opportunities. The division has developed soft skills of service engineers in major metros, which enhanced service awareness with the franchises and provided better customer / dealer satisfaction, especially in the metros. In addition, to this five call centres were made operational during the year.
- Today, BPL compressors are present in almost all brands of refrigerators and major brands of CRA in varying measure. The components division consolidated its hold by supplying car speakers and transformers to some of the reputed multinational companies. The service division too notched up its turnover.
- The compressor division and the components division has recorded an increase in sales by 17% and 4% respectively; by widening its customer base with majority emerging from non BPL customers.
Future Plans:
BPL Engineering plans to export compressors to West Asia, Far East and South-East Asia and a part of the European Union. It also proposes to leverage its expertise in the speaker and transformer business by increasing its market share further.
The company also plans to increase its turnover by introducing new products such as multimedia speakers, mobile chargers and house security systems.
The company`s compressor division is planning to expand production capacity of compressors to one million units to exploit the refrigeration market and aggressively increase its market share. The components division, too, is planning to achieve a substantial increase in turnover from the proposed new business during the next three years time by drawing up major new product introduction plan, which includes car security systems, multimedia speakers, new range of car speakers, car mobile chargers besides expanding the portfolios of Profx range of products.
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