Bangalore, Aug. 7 The prolonged uncertainty caused by the global meltdown since September 2008 was a testing time for corporates across the world. But some have managed by changing their strategy. For instance, machine tool manufacturer Bharat Fritz Werner Ltd (BFW) has come out with new products that have a market abroad.
BFW, whose turnover fell 22 per cent in FY 2009 from Rs 298 crore last year, minimised the impact of the slowdown with steady exports, said Mr N. N. Upadhyay, Director, BFW.
With the domestic market hit by the economic tsunami, the compensated by maintaining its exports at 10 per cent during the period
BFW’s overseas subsidiary, which became operational last year at Kornwestheim, 40 km from Stuttgart, the German automobile hub, helped it strengthen exports. BFW plans to turn the German base, now used as a business promotion centre, into a facility for sub-assembly of machines procured from its Indian arm to cater to the European market.
On BFW’s order position, Mr Upadhyay said, “though we have started receiving enquiries, we will have to wait till the third quarter to see whether they translate into real business.”
BFW would be reviewing its investment plan later this year after assessing the situation. The company is setting up a full-fledged facility at Doddapset near here to expand its capacity by 2011 so as to cater to the aerospace components industry, which is estimated to grow into a Rs 30,000-crore sector.
Mr Amitabh Varma, Head, Marketing Services, said several measures towards cost reduction and the development of new products during the downturn has resulted in the company gaining business enquiries.
Participation in the EMO, the international machine tools exhibition to be held in Milan, will provide further indicators to the recovery of global business, he said.
Source : Business Line