Date:05/01/2006 URL: http://www.thehindubusinessline.com/2006/01/05/stories/2006010501700200.htm

Back Macneill Engg to work on double shift to meet demand

Ambar Singh Roy

Kolkata , Jan. 4

BUOYED by the growing demand for spark-free forklift trucks, after the implementation of the Zone 22 regulation, Macneill Engineering Ltd will work on double shifts from the next financial year.

The forklift trucks and material handling equipment maker, which is set to wipe out the balance accumulated loss of Rs 7 crore by June, manufactures 20 forklift trucks every month. Its factory in Kolkata has an installed capacity to manufacture 850 forklift trucks per annum.

Mr Pradip Churiwal, Chairman and CEO of Macneill Engineering Ltd, told Business Line that the company's order book was full till April.

The implementation of the Zone 22 regulation, which makes it mandatory for all hazardous industries to use only spark-free forklift trucks, had provided a fillip to the demand for these vehicles. To meet the growing demand, it would be necessary to operate the factory on double-shift.

Macneill Engineering, an erstwhile company of the Williamson Magor group, which was referred to the Board for Industrial and Financial Reconstruction, was taken over by Startrack International Ltd group, headed by Mr Churiwal, in January 2004 under a share transfer deal, along with inherited liabilities totalling Rs 16 crore. This figure has since come down to Rs 7 crore. "The remaining loss will be wiped out by June 2006," Mr Churiwal said.

According to him, the operations at the plant had been ramped up to 20 forklift trucks a month from four-five.

SAARC ventures: With the South Asian Free Trade Agreement in force, Macneill Engineering has firmed up plans to venture out to the SAARC countries in a big way. It has a 50:50 joint venture with a Sri Lankan industrial group for export of forklift trucks on CKD basis to that country.

The joint venture is called Macneill Engineering Colombo Ltd. and $2 million will be invested in the first phase. Macneill Engineering will soon begin exporting forklift trucks to Bangladesh as well.

In the year ending March 31, 2006, Macneill Engineering hopes to achieve a turnover of Rs 30 crore, up from Rs 15 crore recorded in 2004-05.