Pushpak Prakash, the director of Pushpak Products India Pvt Ltd., was concerned about the financial collapse of many businesses. He was faced with the challenge of temporarily closing his manufacturing plant, which produced components for the aerospace industry and other engineering companies. The demand for components was down sharply, inventory was inactive, and cash flow was affected. He began to think about cost-effective ways to manage the company and its resources without customers or revenue from sales.
How did Pushpak cope with the drop in revenue during the Pandemic ?
Pushpak Prakash, Director at Pushpak Products India Pvt. Ltd.
Prakash recalls that the company is known for constantly researching the needs of customers and creating products to satisfy them. Since 1992, Pushpak Products has been a presence in six verticals, including the aerospace industry. The aerospace division of Pushpak Products has an affiliation with ISRO, and has provided assistance to the space organization with Mars Mission and Moon Mission, among other things.
The director recalled the history of the company that was involved in spacecraft engineering. He began to look for opportunities to increase revenue. Surprised, he discovered that the opportunity came from Bharat Electronics Limited (BEL), Bangalore. He learned from his sources that BEL was building ventilators to be used by the Government of Karnataka. Pushpak, a thinker and a shrewd businessman, approached BEL to offer his assistance in completing the project. Pushpak’s company designed a prototype trolley to be used by BEL. BEL was satisfied with the prototype and awarded Pushpak Products one tender for 1000 ventilator trolleys.
Also Read: What Are the Post Pandemic Business Trends for MSMEs?
What was the positive impact of procuring the tender?
Pushpak Products worked around the clock to fulfill the first tender. Pushpak Products also considered the increasing COVID-19 levels and the lack of resources in state hospitals to treat citizens. They delivered the first 1000 ventilator carts to BEL in record time.
BEL gave them another tender. This time, it was for 8200 ventilator carts. We wouldn’t be here without BEL’s tender. We were able to secure more orders because of our mutual trust and long-standing relationship. Prakash explains that this resulted in Rs10 Crore of revenue. Pushpak Products took on more projects due to the success of this project and the increase in revenue. The result was a 30% increase in revenue for the Financial Year 2020-21.
Pushpak Products searched the market to find new opportunities in the industry. Pushpak Products inventively built circuit arms to support ventilator trolleys. They obtained the AS100 registration in order to sustain their aerospace business and attract new customers.
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How did you beat the competition during the Pandemic
Prakash says that there wasn’t any competition when he received his first tender from BEL. He was however faced with fierce competition for his second tender. Many firms were willing to assist BEL in the ventilator project. Pushpak Products was ahead of the pack. Pushpak Products had already shipped 1000 trolleys in record-breaking time. BEL gave them another tender for 8200 trolleys.
The employees worked around the clock to make the trolleys using equipment from the aerospace division. The idle inventory was thus used. With its dedication and prompt delivery of orders, the company beat all competition. The company provided incentives and food kits for employees to support their families. It also offered other benefits that kept them happy.
What advice can MSMEs give to companies that survived the ordeal?
- Accept the change: If your products are less in demand, don’t be afraid to start a new business that can meet the needs of customers.
- Select and Convert:Prakash instructs other business owners how to find a market they can enter, develop a business plan and turn it into sales.
- Innovation is key:Pushpak products went on to manufacture oxygen concentrator components and circuit arms after their initial success. Not only did they see a rise in revenue, but they were also capable of recruiting people to finish the project.
- Teamwork: The business was able to survive the pandemic thanks to a dedicated team effort, says Prakash.
As a next step, consider following the steps discussed to register as a Bidder on the tender portal. You can alternatively search online for relevant tenders and proceed with the ones that fit your business needs.
At nexarc (a Tata Enterprise) we provide emerging businesses in India a digital growth platform to find new leads and opportunities to grow their business. Our offering, Tenders & Quotations provides tender information for you to access the latest tenders, respond to tenders or even post a requirement.
To learn more about nexarc and leverage this opportunity, register your business on nexarc today.