The Travancore Cochin Chemicals is truly a rags-to-riches story. From the brink of liquidation two years ago to paying a dividend of about ₹85 lakh to the State government in 2017-18, the company has reasons to celebrate.
“Last year we had the highest production, turnover and profit in the company’s 60-year-old history”, said Managing Director K. Harikumar on Thursday after Industries Minister E.P. Jayarajan laid the foundation for three new plants.
These new plants involve an expenditure of ₹60 crore, the biggest such investment over two decades in the Eloor-Edayar industrial area. It is curtains going up on a new era for the area, once touted as the industrial muscle of Kerala.
More than two years ago, not only had TCC’s net worth eroded, but salary dues had also risen to ₹18 crore in 2016. The company owed ₹180 crore to the Kerala State Electricity Board (KSEB). It was referred to the Board for Industrial and Financial Reconstruction during 2016-17 and everything looked lost. But the company management and employees refused to be cowed down by the daunting task of turning it around, said Mr. Harikumar.
The only option before us was to raise production, to leverage the quality of products and to switch to the right marketing strategies, he said, pointing out that during the last financial year the TCC production level breached the 100% level. The result was obvious. Turnover touched ₹243 crore and the company made a profit of around ₹35 crore from the level of around ₹6 lakh the previous year.
Settlement
Meanwhile, the TCC engaged the KSEB in discussions on dues with the State government mediating for a quick settlement. Between 2016 and 2018, the company also settled its salary arrears. Those burdens off its shoulders, the TCC was able to clean up its account books and look forward to a better future, said Mr. Harikumar.
“This calls for a celebration,” said K. N. Gopinath, veteran trade union leader and former leader of the HLL Employees’ Association. He said with the new plants in place, the TCC would be able to fully utilise its stature as one of Asia’s biggest caustic soda and hydrochloric acid producers.