Liquidity crunch: the key shortcoming

June 17, 2013 12:32 pm

“With no money spent on infrastructure projects and most of the big projects are getting delayed, there was a huge financial crisis looming across the industry.”
– Tushar Bhavsar, Dy. General Manager – Sales, The Motwane Manufacturing Company
Test and measurement (T&M) industry is undergoing numerous challenges and has a mixed performance appraisal. Few of the core sectors — such as power, transformer, EPC projects, transmission and distribution, automobiles and mines — have witnessed a steep downturn and made a cascading effect on T&M industry. However, few sectors like defence, research laboratories, educational institutions, oil and gas etc. have proved to be a life saver for this industry which could barely manage to keep the growth at previous year levels. Tushar Bhavsar discusses about its fabulous growth, shortcoming of liquidity crunch and strategies to counter the challenges.
Fruitful three yearsMotwane was witnessing a fabulous growth, consistently from the last three years and optimistic until the second quarter of the last financial year which recorded a minimal growth as compared to previous year. EPC contactor segment, power transmission and distribution segment, research and development, defence etc. are the key sectors that contributed to its sustained growth in the last year.
Shortcoming of liquidity crunchThe key shortcoming, of course, was the liquidity crunch. With no money spent on infrastructure projects and most of the big projects are getting delayed, there was a huge financial crisis looming across the industry and no corrective measures by the policy makers was in sight and timely implemented.
Opportunities in slowdownMotwane has initiated several marketing and awareness drives which were implemented throughout the year through its well-networked pan India sales force. It also introduced certain training modules for its own people as well as customers and channel partners for the first time to optimise the opportunities due to slowdown in the economy. It also shifted focus from its traditional areas to other areas like projects, oil and gas, defence, and research laboratories to ensure that the company keep the growth momentum. Strategies to counter constraintsMotwane has outlined a few strategies and started implementing them from day one of the current financial year. The company hopes that the same will bring out positive results. One of the key strategies is to keep the expense budget under control, improve cash flow and reach out to larger audience.
Landmark agreement Motwane has signed a landmark agreement with one of the world’s leading manufacturers of UHV test systems, namely, Haefely Test AG Basel, Switzerland which will take the company in a different horizon all together. It has lined up around 12 products from its in-house R&D department for introduction which will kick off from June 2013.
India among 5th largest manufacturing countryThe people of India have all the necessary ingredients and resources to realise the dream of making India among the 5th largest manufacturing countries. The industry can take India to the next level, provided it has the will to do it. If every citizen of India including the policy makers makes a self-commitment “together we can do it”, nobody can stop from reaching that milestone.