Transformers and Electricals Kerala Limited (TELK), the transformer manufacturing unit at Angamaly, is looking towards building a technology partnership with Bharat Heavy Electricals Limited (BHEL), the public sector unit which is also engaged in production activities of a similar nature. TELK has a collaboration with NTPC Limited, the principal power generation company belonging to the central public sector, now.

There were reports that NTPC might review its association with TELK. Professional services firm Deloitte had conducted a study on NTPC and the agency is understood to have recommended such a course of action as transformer manufacturing is not in the NTPC’s domain of activity. In response to a query by The Hindu , Deloitte expressed its inability to divulge the details of the report.

TELK has been highly interested in a tie-up with BHEL, said V.D.Satheesan, MLA, and trade union activist associated with the Angamaly-based company.

Such a partnership is expected to help TELK to get the required technical know-how for improving its production and marketing capabilities. “Efforts are on to convene a meeting of top officials of the concerned central public sector units in New Delhi,” he said.

N.Ravindranath, former Managing Director of TELK, said the company had worked closely with BHEL in the past. The association had been beneficial to TELK. “Competition among public sector companies manufacturing same products might turn unhealthy. Instead, a collaboration would be advantageous to both,” he said.

Success story

TELK was established by the Kerala government in 1963 in collaboration with Hitachi Limited, Japan. Though the company earned a name in the initial years of operation it suffered losses consecutively from 1988-99 to 2001-02. With about Rs.60 crore turnover and a loss in excess of Rs.10 crore, the company was referred to Board for Industrial and Financial Reconstruction (BIFR). An effective marketing strategy adopted by the management after 2002 resulted in improving the turnover. It made a profit of Rs.6.18 crore in 2002-03. In 2007, the company entered into a business collaboration with NTPC Limited.

The collaboration yielded good results in terms of performance. TELK is a zero debt company with a positive net worth of Rs.118 crore now, but the lack of a technical partnership had been a shortcoming.

The idea for a collaboration with BHEL was pursued to overcome the issue.

The partnership is expected to help TELK get the required technical know-how for improving its production and marketing capabilities.