Hmm… I looked a bit more as the sales seem to be rising and the management seems to be doing the right thing by selling off land, concentrating on higher margin products, increased ad spending, buyback, not jumping into acquisition at any cost etc.
Looks like the son and daughter have taken over before all this turnaround started. Here are their credentials:
Mr. Shreevar Kheruka , son, joined in 2009, has a dual degree of B.Sc. in Economics and B.A. in International Relations from the Wharton Business School of the Universityof Pennsylvania, USA. After completing his studies, he worked with the Monitor Group, a multinational strategic consulting firm in USA, during which he gained valuable experience in re-structuring some Fortune 500 companies. Upon his return to India, he joined Borosil Glass Works Limited as Vice-President for a period of three years before becoming Director of the Company.
Mrs. Priyanka Kheruka,wife of son joins as Marketing Consultant , has obtained dual degrees in Bachelor of Science in Economics with concentrations in Marketing & Management from the Wharton School & the College of Arts & Science, of the University of Pennsylvania, USA. Thereafter, she joined New York â Bain and Company, a top consulting firm as Associate Consultant in the private equity group, where her work included due diligence resulting in a major acquisition. She also worked in the general strategy group, providing inputs on operations, capacity management, market share growth strategies and competitive landscaping.
Here is a note from the 2009-10 AR detailing the losses. In reading the ARs, it does not look like the company is trying to hide anything or painting an unduly rosy picture.
The Company is in the process of setting up a modern borosilicate glass melting furnace at a site in the Bharuch District of Gujarat and till this new plant is commissioned, market demand is being met from its own stock and by sourcing from imports as well as from domestic market.
Sales during the year under review were higher at Rs.9109.07 lacs as compared to Rs.7127.11 lacs in the previous year. Inspite of improved performance by both âScientific & Industrial Divisionâ and âConsumerware Divisionâ, the Company incurred losses amounting to Rs.2479.14 lacs (which includes Extraordinary Loss of Rs.1869.98 lacs) as compared to loss of Rs.940.84 lacs (which included Extraordinary Loss of Rs.500 lacs) during the previous year.
The reasons for losses are attributed to the following factors:
1). An amount of Rs.1869.98 lacs paid under Voluntary Retirement Scheme (VRS) to the workmen at Marol Plant has been treated as extraordinary loss. On the top of this, the Company has to service the loan taken for the purpose. All these, however, helped the Company in freeing its land at Marol for development / sale.
2). Since the Company is in the process of setting up of new plant in the Bharuch District of Gujarat, although there is no production right now after discontinuation of manufacturing in the Marol, Mumbai Plant, the Company has been incurring fixed costs on its technical and other staff to be eventually deployed in the new project. The Company has in the interregnum period, been importing products from abroad in order to maintain its market share, inspite of lower margin. The Company has also suspended its operations at Maraimalai Nagar, Tamil Nadu in view of obsolescence of the products being manufactured there.