According to S & S president S Purkayastha, while all companies in the electrical engineering business were facing the brunt of the recession without exception, S & S Power felt the strain more as it had considerable exposure in the Malaysian markets where the economy collapsed. S & S has a 51:49 joint venture in Malaysia, S & S Power Corporation Sdn.Bhd, with an equity base of Rs 1.11 crore. Considerable exports were routed through this company. The domestic market fared better with prices ofelectrical products crashing by 20-30 per cent, squeezing margins. The Malaysian market is, however, again seeing signs of revival and the current year is expected to be better for S & S.

The turnaround strategy aims at increasing the export market partly through its UK subsidiary Acrastyle Ltd, with exports resuming in the Malaysian market. In the domestic market, the company is increasing its exposure to private firms. In the past, it had restricted itself largely to the state electricity boards (SEBs) where it has huge exposures and outstandings. While exposure to the SEBs would be reduced to 40 per cent of turnover, exports are expected to fetch another 30 per cent and sales to private companies the remaining. The company has received a good response from many corporate houses here like ABB, Siemens, Alstom, and BHEL, and firms like Hyundai and Mahkota in South Asia.

Funds for the turnaround are expected to be generated from the sale of two units of the company which are doing well but do notsynergise with total operations, according to Purkayastha. Some foreign companies have expressed interest in buying the Ambattur unit (near Chennai), which makes moulded circuit boards, and the Pondicherry factory, which makes fuses and fuse bodies in the low-tension range. The deals are expected to be through by August this year. S & S expects to pay off its debts with the proceeds of the sale and plough back the remaining into its core businesses--medium voltage switchgear and high voltage disconnectors.