When knocked down by virus, stay hit or beat the count?

 PART 1 OF 2

The year was 1991 when the Indo-Japanese venture began its operations near New Delhi. It would go on to establish a reputation for being one of the world’s most preferred manufacturers and suppliers of automotive halogen lamps.

Those were the times when many small and medium enterprises were quite happy to wait for exemptions and hand-outs, without bothering to strive for global competitiveness. This company was an exception. They were always focused on maintaining high levels of quality, cost efficiency and customer service.

International engineering, Indian hospitality

Representatives of German companies (mainly suppliers, also some buyers) were frequent visitors to the company. A friend who used to participate in some such meetings has vivid memories.

“They would begin with a presentation, followed by a tour of the factory. Everything was open to inspection; no information was hidden. Discussions about the state of the industry and potential innovations would continue after lunch. Dinner would be at home. There was no rush to get into the terms of the immediate contract and pricing. Even after the terms were discussed, there was no pressure on the visitors to respond.”

It was a lesson in negotiation. Don’t rush into the commercials. Establish and strengthen the equation first.

“There was no compromise on the professional side, everything was par excellence—engineering capabilities, attention to details, systems, quality assurance. On the personal side, the Indian hospitality often overwhelmed the foreign visitors, but it was natural, straight from the heart. More often than not, they would come as visitors and leave as partners and lifelong friends.”

Keeping up with the times

When the second generation took over, the approach was more rough and tough. Obviously, the global market was getting more competitive and every little advantage mattered. Their products continued to rule the world market and their systems were all well-honed. The potential for difference was in staying the world’s best at a lower cost.

There were regular monthly and quarterly meetings with various levels of management. The agenda would remain the same: cost cutting.

A visiting business unit head, a senior leader from Germany, once openly admitted that the company was better than most of the German ones. It was a huge compliment, but not necessarily a surprise.

In 2014, the company was taken over by a large group based in Bengaluru, a global leader in automotive cables. The company grew stronger. Its reputation touched new heights.

Nearly 40% of its revenue came from exports. And almost 100% of its raw materials were imported. Yes, it was still an Indian company by birth. But effectively, it was a global giant that straddled the continents.

Then came the virus

When the virus shuttered businesses, the company found that there was no way to maintain supplies as the products were not considered “essentials”. The flow of raw materials trickled to a stop. Suppliers began to voice their concerns about outstanding payments.

Just as the company was getting ready to curtail production, competitors based in Wuhan, China were getting ready to restart business and assuring steady supplies to Europe. Suppliers from Germany were also active as the factories there had not stopped production.

Finally, the company had no option but to stop operations.

It was the worst possible time. World over, companies were reassessing supply chains and moving towards sources closer home. It would have been the ideal time to reaffirm their position with customers near and far. Instead they were simply disappearing from the market.

Uncertainty ruled. Was its glorious past totally irrelevant now? Was there any advantage the company could hope to salvage? Was this the end?