1. K.S.Madhavan
Lean -'yes', but not 'mean'. India's greatest resource
is manpower.The 'Iean-and-mean' outlook is meant
for a country which is short of manpower. India's
problem is that it is misusing its own manpower resources,
.. says Mr K.S.Madhavan, managing director, Tecumseh
Products India Ltd."
Technology, he says, will be the main driver of tomorrow's
businesses. However, with so many brains engaged in the
development of intellectual capital, leading to development
of new technologies, the cost of technology will constantly
come down.
Only those companies, which invest in development of in-
tellectual capital, rather than invest in high cost capital equip-
ment, can give handsome returns to its shareholders. Mr
Madhavan shares his views on a few millennium issues.
CHALLENGES
In the new millennium, jobs of people will move towards
intellectual working. Manufacturing, as it is known today
will becomc low valuc adding and hcncc will bc takcn over
by machines and processes, which are controlled by the
microchips.
The job of the so called blue-collar workers of today will
change to monitor the performance of these machines, to
intervene when they go wrong and to maintain them as'also
the processes.
'Quiet' innovations,.
sturdy savings
ICTisacriticalfactorindeterminingthe
successoftomorrow'scorporations
ICT
Peopleclaimthat societiesandcorporationsare movingfrom
operating with data through the intermediatestage of infor-
mation (data + analysis) to operating with knowledge (data
+ analysis + proper usage). Information and Communica-
tion Technology is a critical factor in determining the suc-
cess of tomorrow's corporations.
INNOVAnONS
One of our most important innovations related to replacing
imported compressor technology for refrigerator business
by in-house development of indigenous refrigerator com-
pressors, which could be manufactured with the same equip-
ment and processes, which were existing with us, thus sav-
ing for the company more than Rs.50 crores in investment.
In the air conditioning compressor field, we were the first
to introduce super silent versionof compressors, which was
an Indian innovation, suiting Indian climatic conditions.
OUTLOOK
Tecumseh is driving creativity and total employee involve-
ment at all levels. Even with total employee involvement, a
company will be wiped out unless they are constantly crea-
tive. With this in mind, we have started a "Creativity De-
velopment Department" recently.
MILESTONES
The company was lOOpercent acquired from Shriram Re-
frigeration Industries Ltd (SIEL), Hyderabad and from
Whirlpool of India Ltd (WOIL), Faridabad/Ballabgarh.
Before acquisition, SIEL Compressors Ltd. had a loss of
over Rs.20 crores and a negative return on capital employed
(ROC E) of 30 per cent. For the year ending December 1998,
the Hyderabad Division has rccorded an all time high profit
of 15 per cent ollilet sales 011ROCE of ovcr 27 pcr cent.
The Compressor Division of Whirlpool of India Ltd., at
Faridabad/Ballabgarhhadover Rs.30croresloss withROCE
equal to -75 per cent. In 1998,we achieved breakeven and
ROCE was +12per cent.
The Hyderabad Unit is the tirst Air Conditioning Compres-
sor manufacturer to get certification for both ISO 900 I and
14001. .
AP *MillenniumMen