Bharat Pumps & Compressors
|Public Sector Undertaking|
|Industry||Ministry of Heavy Industries and Public Enterprises (India)|
|Headquarters||Allahabad, Uttar Pradesh, India|
|Abhay Kumar Jain (Chairman & Managing Director)|
Number of employees
Bharat Pumps & Compressors Limited (BPC) is a Miniratna Company, Public Sector Undertaking (PSU) of the Government of India. The company manufactures Reciprocating pumps, Centrifugal pumps, Reciprocating compressors, and high pressure seamless Gas cylinders. Headquarters in Allahabad.
BPC was set up in 1970 to cut the country’s dependence on import of hi-tech equipment like pumps and compressors for use in critical areas like oil & gas exploration, refineries, chemical & fertilizer plant and nuclear plants. Unfortunately, the company was unable to make profits. Eventually, it turned sick and was referred to the Board for Industrial and Financial Restructuring (BIFR). BPC’s losses had accumulated to ₹1,753 million (US$26 million) as on 31 March 2005 and the net worth had turned negative at ₹1,216 million (US$18 million). The company was referred to the BIFR and was on the verge of being closed down after 35 years of operations.
The company has seen a dramatic turnaround in its performance from the financial year 2005-06. The company’s profit before tax (PBT) in the financial year 2006-07 was ₹191 million (US$2.8 million), which increased to ₹311 million (US$4.6 million) in 2009-10. During the same period, our net worth increased from ₹569.6 million (US$8.5 million) to ₹1,241 million (US$18 million). The turnover went up to ₹2,711 million (US$40 million) in 2009-10 from ₹1,437 million (US$21 million) in 2006-07. The turnaround of the company is credited to Mr. Abhay Kumar Jain, who was appointed the MD of the sick company in the year 2005-06. The special efforts and corporate strategies put in place by Mr. Jain, after joining on 31.12.2005, yielded the much awaited turnaround of the Company. BPCL achieved a net profit of Rs. 1.84 crores during Financial Year 2005-06 after accounting for interest amounting to Rs. 135 million as against a loss of Rs. 108.6 million during previous year 2004-05. This remarkable feat of turnaround is of significance since it was achieved without considering the benefits of financial restructuring. Presently, the company is again running in loss. Surprisingly, Mr Jain invested nearly Rs 100 crore in purchase of new machines and had projected business of Rs 1600 crore. This target was never achieved and as a result, company has again incurred loss
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