PVR Murthy, Group Finance Director, The Yash Birla Group, MD, Birla Power Solutions Ltd is commerce & law graduate. A Charted Accountant and MBA with total 35 years of experience. He has worked with various companies over a span of 16 years in the capacity of Managing Director, Director, CEO and Advisor. Presently, he handles various tasks and assignments like Financial Resource Management for all Group Companies, Business Restructuring, Disinvestments; Mergers and Acquisitions, Strategy, HR, Corporate PR.
Birla Power Solutions Ltd., (BPSL) established in April1984 in collaboration with globally renowned Yamaha Motor Co. JAPAN by dynamic visionary late Ashok Birla. It was the first Company to manufacture portable generators in India in 1986. The Company has the expertise of manufacturing 2 stroke as well as 4 stroke engines. The Company is presently producing a wide range of Generators catering to the power requirements of 500W to 40K.W being fuelled by variety of fuel options like Kerosene, Petrol, Diesel, LPG, CNG, Biogas etc. It was the 1st Company to roll out Self Start Gensets and became the 1st Company to launch emission compliant Generators under the brand name – BIRLA ECOGEN, once again taking a step ahead, to launch low noise gensets, complying with phase-II noise norms and entering a new era of silent technology gensets. The company is committed to provide total Power Solution depending upon customer needs by manufacturing Portable Generators, Inverters, and Home UPS.
Replying to Yash Ved of IIFL, P.V.R. Murthy say’s, “With government policies being favourable, renewable energy is picking up in India. We plan to enter the power generation business soon.”
Brief us about your business model?
We are primarily an engineering company manufacturing engines. These engines find application in making power generators and agricultural equipments such as pumps. We sell these products through large dealer network spread across India. We also sell to institutions which are supplying these as part of package to government supported programs in education and healthcare. These programs are connecting rural India to mainstream and we are part of this developmental effort of government through institutional customers.
Are you planning to foray into diesel generator, petrol, and LPG and kerosene segment?
We are already present in petrol, kerosene and LPG segment. We are working on introducing engines which will run on diesel for which we are in discussions with partners for technology support.
Do you plan to launch any product over the next few months?
We are planning to launch larger horse power engines in market, as urban lifestyle changes call for higher capacity generators.
We will also launch diesel generator within next 1 year.
Are you in race for any acquisitions?
There are not too many suitable opportunities in this segment in India; hence Greenfield option is more suitable for growth.
However, we are always looking for partnerships and Joint Ventures, which add value to business. One of the things for immediate priority is engine development partnerships.
How do you see prospects of power industry?
India will remain a power deficit country for at least one more decade if not more. Although, renewable energy is picking up with government policies being favourable, India will remain dependent primarily on fossil fuels. We are entering in power generation business soon.
How do you see inverter market going forward?
India will remain a power starved country and therefore any product which addresses this need will have potential. We are present in this segment as a marginal player but have recently hired a sales head to spearhead this vertical. We look forward to scaling up this operation this year.
What is the current market share for portable generators? Are you planning to increase market share in portable generators and pump?
We enjoy close to 25% market share in portable generator. We are going to be very aggressive in the segment in this financial year and we do expect our market share to show significant growth by the end of this financial year.
What is the current production capacity for portable generators? Any increase in the production capacity on cards?
Our capacity if approximately 80,000 pcs per year which is approximately 50% utilized.
We are not looking to enhance the capacity in portable generator business but we are expanding capacity of 5KVA generator which is showing explosive growth in recent times.
Brief us about your manufacturing facilities?
Our facility is located near Dehradun which has state of the art equipments. It is spread across 36 acres of land.
Brief us about your R&D business?
We are continuously investing in R&D. We had launched a multi-fuel pump 6 months ago. Recently we launched new generation of 5kva generator which has been very well received in market. We are looking to introduce new models within this financial year.
Brief us about your financial?
We finished the year 2009-10 with topline of Rs. 2.37bn and profits of Rs. 13mn. The fall in profits was due to certain one time write offs.
What is your revenue target for 2010-11?
We are expecting to grow in double digits on the back of new product launches and renewed focus on certain product segments.
What is your current debt?
As of March 31, 2010, total debt was a little over Rs. 1bn.
What is your view on MBA students / B-schools today?
There has been deterioration in the quality of students in recent past due to mushrooming of large number of B-Schools across India. Government needs to put some kind of system check in terms of curriculum quality, evaluation mechanism for granting licenses, etc.
What are your/company expectations from B-school students or what should B-school students do to be job ready?
The curriculum needs to be industry friendly. There is need for larger industry-education partnerships for making the students ready for job.
What would be your advice to a youngster wanting to join your company?
We as a Group are in a very high growth phase. We have recruited many youngsters in last 15 months and are always looking for young minds to come and work for us.