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Industrial Systems<br />
Performance of the SBU for the year<br />
(Rs. Crores)<br />
<strong>2003</strong>-04 2002-03<br />
Sales 439.70 376.54<br />
Net Sales (excl Excise) 381.52 324.55<br />
Export Sales (CIF, incl deemed exports) 24.23 16.45<br />
PBIT 40.80 23.37<br />
Net Capital Employed 95.11 134.21<br />
Unexecuted Order Book 163.95 112.85<br />
ROCE 42.9% 17.4%<br />
PBIT to Net Sales 10.7% 7.2%<br />
This SBU is engaged in the manufacture and marketing of Electric motors –<br />
Fractional Horse Power (FHP) Motors, Low Tension (LT) Motors, High Tension (HT)<br />
Motors, DC Machines and Rail Transportation.<br />
The earlier sluggish market conditions cease to be a cause of concern for this<br />
Business Group.<br />
The IEEMA certified Standard EFF1 High Efficiency LT Motors and Flameproof Gas<br />
Group II C Motors introduced last year, fortified the Company’s market leadership in<br />
the AC Motors segment due to the excellent market acceptance. To respond to the<br />
increasing market demand for large frame motors, the Company successfully<br />
introduced special larger frame motors – ND 355 LX and C 400. The Company also<br />
relaunched its series of Super Drive Motors. The new focus markets during the year<br />
were the cement industry and the tele<strong>com</strong> industry.<br />
Supply chain management and value re-engineering were the thrust areas for the<br />
HT Motors Division; however, the overall cost structures, specially personnel costs<br />
continue to be a concern area, and negatively impact the profitability of this<br />
Division.<br />
The Stampings Division continued to expand during the year in response to needs<br />
within the Company, as well as externally. The emphasis during the year was on<br />
increased automation for which the necessary capital expenditure was incurred.<br />
Towards deriving the benefits of logistics, as well as lower personnel costs, an<br />
additional unit for manufacture of Stampings, is being set up at Ahmednagar with an<br />
additional capacity of 5000 MT per annum. The significant process improvement from<br />
gang slotting to progressive tooling, is a major shift, which has contributed<br />
considerably to the reduction of costs for the Division.<br />
The Rail Transportation Division, has stabilised itself as the largest player in the<br />
Relays and Point Machines segment of railway business, the wide product variety<br />
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