Sudhir Deoras-Managing Director, TRF

What factors helped you to register consistent performance over the years?
There are several factors that have contributed to TRF’s consistent performance. The growth of the Indian economy and Government of India’s plan to build infrastructure in the country with the aim of making the economy robust and resilient have contributed to large extent to TRF’s continuous growth. Many new projects in the infrastructure sector requiring addition and expansion of thermal power and steel plants and modernization and enhancement of the country’s port and mining capacity have announced been in the recent past. This is an area requiring bulk material handling capability and TRF is well recognized in the market place for its competence built over five decades of experience. The bulk material handling products manufactured by it are well accepted in the market place. It has proven tack record of setting up over 50 coal handling plants in thermal power plants. TRF’s reputation as a keen player in the business of bulk material handling has enabled it to win several orders. Consequently, TRF has been able to bag several fairly large turnkey orders and get orders for its products. While market forces and TRF’s reputation have contributed to the flow of large orders but due credit must be given to people at TRF who now want to take more and more challenging projects. The same set of employees produce the nearly double of what was being produced three years ago. There has been a gradual change in mindset of the employees. Now, there is a belief that the company can take and successfully complete much larger orders that it once hoped to win. I feel that they are convinced that TRF will soon become a preferred company in bulk material handling business.

What have been the thrust areas for TRF in the recent times?
TRF has been undertaken a multi pronged approach to improve its performance on a sustainable basis. Improving the bench strength and giving the right training based on assessment of required skills set is the order of the day. A large number of people have been recruited in TRF to undertake new and more challenging projects. Keeping in mind, the company’s requirement for new projects it plans in the future. TRF has entered into the technological alliances with several world renowned technical companies with the aim of improving its processes and making innovative product offerings in the market place. As a matter of strategy, TRF has made large investments in automotive applications sector. Investments in the companies like York, Singapore, DLT, Sri Lanka, and Adithya Automotive Applications are an outcome of a well planned strategy. This has helped TRF to de-risk the bulk material handling business and give added thrust to the bottom line of material handling business.

The Company has also made investments in modernizing and expanding the capacity of its works in Jamshedpur which will result in quantum jump in its bulk material handling equipment manufacturing capacity. New state-of-the-art machines along with additional manufacturing space have been added in the Jamshedpur Works. We have leveraged proven production and process management tools to help us to work in a smarter and more productive manner. The Company has acquired new engineering software to deliver the most appropriate designs for its products and designs (civil and structural) for its turnkey projects. Most importantly TRF is now pro-actively marketing its products and engineering capabilities in the private sector.

What is your present order book position?
We have a very healthy order book position for the current financial year i.e. 2011-12. Our present order book position is in the tune of Rs 1,400 crore.

What is your present capacity? Is there any plan of expanding this capacity further in the coming financial year?
To answer your question on capacity I must share with you that TRF’s business should not be measured only in terms of its capacity. Yes, we manufacture bulk material handling equipment but this is based on orders from customers. The turnover from the works has been increasingly steadily in response to the increase in demand. However, we also have the capability to do a large amount of turnkey projects (engineering, procurement and commissioning) in power, steel, mining, power and other infrastructure industries. Our experience in this business has helped us to develop as competent players in bulk material handling project management business. Our strength in project management capability has given us the confidence to enter Balance of Power (BoP) business in thermal power plants. The BoP division will leverage TRF’s in-house design, manufacturing, testing and project management capabilities.

What kind of challenges are you facing to maintain the same growth rate of the company? What is your view on the Indian infrastructure industry and its future with respect to your company?
The slow down in order booking is a challenge. This position is not unique to TRF but affects the entire industry. Bids for tenders have not been invited for nearly a year and though we are quite occupied fulfilling the current orders but if this situation continues for long then it will affect the entire industry. We hope that this situation will change soon.

The BoP business that TRF has added to its portfolio is bound to give a fillip to the TRF’s growth. However, we are infants in the BoP business but we hope to soon make a mark in this and be recognized as the preferred partner. It aims to take on a single point responsibility to deliver all civil, work, design and engineering erection of structures such as ash handling plant, cooling tower and water systems, bulk material handling systems and fulfill the equipment requirements of power plants.TRF aspires to aims the world’s best practices and services in this segment.

Is there any plan of further diversification of your present product portfolio? What prompted you to acquire Hewitt Robins International? How this will help better top-line this financial year?
TRF has always been sensitive to the market requirement and has responded to this by incorporating changes in its product range. We already have multiple technology tie-ups with some of the most renowned companies who are also in the business of bulk material handling. We intend to combine their, know how and the advantage of producing them at a highly competitive price in our works with the intention of widening our customer base and increasing our presence in the market. We have tied up with Schade, Germany for radial stacker re-claimers. The one installed in BSPCL, Bhilai in association with them, is Asia’s first and biggest. Through an alliance with Binder+, Austria we are supplying flip-flop screens in the local market. We have a tie-up with Claudius Peters Technologies, Germany for the coal injection facility in steel plants. Supply and installation of long distance conveyors and pipe conveyors are also in the pipeline. In order to cope with the demand for reduction of cycle time of wagon tipplers, as per G33 norm of RDSO, TRF is planning to enhance the capacity of tipplers so that they make more tips per hour. It hopes to offer twin wagon tipplers in the future. The decision to invest in Hewitt Robins International (HRIL), UK was triggered by such a need. Through HRIL we plant to add larger capacities and efficiency to our existing product portfolio and roll a few more products such as mobile cone crushers, screens, etc that the Indian market is now ready for. HRIL screens have already been supplied in the Indian market and the initial customer feed back has been very satisfying. 

Where do you see TRF in the next five years?
Sometime in April 2008, TRF took a pledge to grow five times in five years to become a Rs 2500 crore (turnover) company and an international leader in material handling business. We are well on track and we hope to end this fiscal on a resounding note. The works production with several streamlining initiatives and added fabrication space is poised for quantum jump in bulk material handling equipment production. We also see tremendous opportunities with successful bidding in BOP business and with the opening of bids for the existing turnkey projects business.

How are you creating value for your investors?
We are creating value for investors and also for all our stakeholders. There has been clear growth in the turnover and profitability of the TRF and the all the companies in the group. TRF has been paying the most handsome dividends to it investors year after year. We paid 100 per cent dividend in 2007-08, in 2008-09 120 per cent and 75 per cent on post bonus equity shares in 2009-10. In the financial year 2009-10, the Company had issued bonus equity shares to its shareholders in 1:1 ratio. However, as a Tata enterprise we believe that it is our duty to create value by building a sustain-able enterprise for all our stakeholders and not just our shareholders. We feel that our customers, supply partners, potential employees and employees and even the community in which we operate must feel proud about their association with TRF Limited. Improving the quality of life through all our processes, products and services that we render is our ultimate goal.