When Nikhil Nanda became the sole Managing Director of Escorts about two years back, not many would have expected that he would be successfully leading a remarkable makeover in a relatively short span of time. And not only has he positively turned around the organisation towards the path of profit but has also brought in an attitudinal transformation that is ensuring a long-term progress for the Group.
The Strategies
The recent (and excellent) Q2 results further show that this third generation entrepreneur is more than managing the show; he is driving it. Given the current market scenario, it is indeed a very commendable job. Well, there are some signs of economic revival but the industry is far from celebrations. So what have been the strategies implemented by Escorts Group to deliver profitability and growth during recent times under his leadership?
He agrees that Escorts has done fine in difficult market conditions but also acknowledges that the Group still has a long way to go. And the Indian farmer remains at the centre of most of the things that Escorts does. "The companies we have partnered with and the kind of products we have launched are testimony to our pioneering efforts in bringing global agriculture technology to Indian farms," Nikhil Nanda says.
In the last few years, the Company has invested more than Rs400 crore in putting some of the finest products in the market. "I might sound biased, but these products give us an edge in meeting customer requirements, and will help us in achieving leadership position in the domestic market," he says.
Nanda has also embarked on an ambitious program that emphasises on lean management and consolidation of operations to create a more profitable manufacturing practice. "Simultaneously, we are looking to engage with best-fit global partners for technology infusion to tap into the larger opportunities available within our operational sectors.
"In the long run, our focus is to first boost earnings and then efficiently allocate capital in the productive assets in order to generate better returns. Going into 2016 and beyond, I am very hopeful these initiatives will not only enable us to target higher market share and margins but also make us the brand and partner of choice across our businesses," he says with a certain confidence that remains grounded.
(Continued on the next page)