Challenging The Boundaries
Way back in 1963, he left for Bhopal with a wish to join BHEL, only to find that the company was in the middle of a two-month old strike.
By Juhi Shrivastava, ET Bureau |
Way back in 1963, he left for Bhopal with a wish to join BHEL, only to find that the company was in the middle of a two-month old strike. At this juncture, CE Fernandes has decided to join a small tool manufacturing company - Bhopal Engineering Ltd (BEL).The ticking point was when he left BEL to start his own company - GEI Industrial Systems Ltd.
"I developed tools on my own to provide Indian substitutes for imported parts like fin tubes. I managed to eke out a good income for five years without any loan. Our company became a dedicated supplier of ancillaries to BHEL," the CMD of GEI proudly recalls.
In 1975, the company opened its design laboratory for developing cooling systems for motors, generators, transformers and turbines, one after the other. "The new international entity formed with BHEL and Siemens collaboration has also approved GEI���s products, which marked our foray in the international arena and there was no looking back after that," he regards as one of the milestone of his entrepreneurial journey.
"In 1988, when BHEL Hyderabad collaborated with General Electric to make gas turbines; we provided them the cooling solutions," he elaborates.
But the time was not always in favour of Mr Fernandes. He can never forget the hardships of this journey. "In 1975 we decided to increase our scale of operation through bank loan and approached a bank for it which got rejected at the branch level," he recalls. But he had decided not to step back. "I made
the regional manager of the bank realise the contrariness of the situation; and GEI got the loan,"
he happily discloses.
"I also remember how a BHEL manager was against buying our products, opting for imported products always. It was only when I chanced to see him passing by on a bike and mentioned it, that the ice broke and he agreed to take a look at our goods and went on to approve them," Mr Fernandes explains. He is of the view, "Unplanned encounters such as these also helped the business to gain ground."
Unveiling his company���s success mantra, Mr Fernandes says, "Commitment to innovation has always been uppermost for us. Besides which, we share a very close relationship with our suppliers and customers. Our products are developed through in-house R&D, right from scratch - we decide on the production technology, the concept, the methodology, after endless debates. All heads and technical knowledge are put together until we come up with the final resolution." Such a way of working has kept GEI fairly upbeat and on the move.
Mr Fernandes have big plans for the company. "We expect net sales soon to touch the Rs 1000 crore mark. The EBIDTA should improve from current 15% to 18%. We also hope to increase the variety of products being offered," he asserts.
Penetration into power transmission and Balance of Plant (BOP) is on the company���s cards as well. Foray into new product line and BOP for thermal power stations are sure to bring rich dividends to the company.
On concluding note he says, "Having an iron will is essential for an entrepreneur. There can be no shirking and fear of hard work. Finding innovative solutions is also important but most importantly one must carry people along because a strong team is an essential prerequisite for success."
"I developed tools on my own to provide Indian substitutes for imported parts like fin tubes. I managed to eke out a good income for five years without any loan. Our company became a dedicated supplier of ancillaries to BHEL," the CMD of GEI proudly recalls.
In 1975, the company opened its design laboratory for developing cooling systems for motors, generators, transformers and turbines, one after the other. "The new international entity formed with BHEL and Siemens collaboration has also approved GEI���s products, which marked our foray in the international arena and there was no looking back after that," he regards as one of the milestone of his entrepreneurial journey.
"In 1988, when BHEL Hyderabad collaborated with General Electric to make gas turbines; we provided them the cooling solutions," he elaborates.
But the time was not always in favour of Mr Fernandes. He can never forget the hardships of this journey. "In 1975 we decided to increase our scale of operation through bank loan and approached a bank for it which got rejected at the branch level," he recalls. But he had decided not to step back. "I made
the regional manager of the bank realise the contrariness of the situation; and GEI got the loan,"
he happily discloses.
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"I also remember how a BHEL manager was against buying our products, opting for imported products always. It was only when I chanced to see him passing by on a bike and mentioned it, that the ice broke and he agreed to take a look at our goods and went on to approve them," Mr Fernandes explains. He is of the view, "Unplanned encounters such as these also helped the business to gain ground."
Unveiling his company���s success mantra, Mr Fernandes says, "Commitment to innovation has always been uppermost for us. Besides which, we share a very close relationship with our suppliers and customers. Our products are developed through in-house R&D, right from scratch - we decide on the production technology, the concept, the methodology, after endless debates. All heads and technical knowledge are put together until we come up with the final resolution." Such a way of working has kept GEI fairly upbeat and on the move.
Mr Fernandes have big plans for the company. "We expect net sales soon to touch the Rs 1000 crore mark. The EBIDTA should improve from current 15% to 18%. We also hope to increase the variety of products being offered," he asserts.
Penetration into power transmission and Balance of Plant (BOP) is on the company���s cards as well. Foray into new product line and BOP for thermal power stations are sure to bring rich dividends to the company.
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On concluding note he says, "Having an iron will is essential for an entrepreneur. There can be no shirking and fear of hard work. Finding innovative solutions is also important but most importantly one must carry people along because a strong team is an essential prerequisite for success."
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