Under the old management, TIL was facing issues on almost all sides. Due to no working capital, they couldn’t execute the orders, despite having the technology, plants and people. Now the new management has made the following corrections in last ~12 months:
- Infused capital in the company, so that operations can start.
- This has lead to some excitement with the buyers that the orderbook is getting executed. This is leading to new orders, albeit at a slower pace.
- They have cleared dues of the workers. So people are energized to work again.
- They have hired new people, inturn infusing fresh thought process and energy.
- They are using the sources of Gainwell group to make sure that necessary support in the initial stages is provided to TIL.
- Because the operations are running, talks with foreign technology providers have also started about how to make better and bigger products in India.
- They have large empty space at Kharagur plant. They are in talks with current technology partners and also other companies to find out if production can be outsourced to India.
- In vehicles, after sales service is a very important aspect, specially in commercial vehicles where continuous running means money. Under the old mgmt., this department suffered a lot. Now ample resources are being allocated to make sure that atleast existing customers and machines are running and are happy. Plz also note that, after sales service is one of the most profitable department in any company.
All in all, progress is slow but steady.
The Chairman had answered all the questions in the last AGM and EGM. I believe that links to both these meeting are available online. They are long meetings, but very useful for investors to develop conviction.
Disclosure - Holding.