The Jalgaon-based Jains, of Jain Irrigation fame, seem to have realised this it after their ventures into finance, information technology and granite boomeranged.

In a rare display of candour, Jain Irrigation group chairman BH Jain says in his communication to the company's shareholders: "Twenty years of the `we can do it' spirit and the post-liberalisation euphoria encouraged us to make some ill-planned forays into finance, infotech and granite."

He states that these risks were taken in the "quest" for projects with a bright future and excellent profit-profiles. However, he says: "Management of these businesses, we soon discovered, was infinitely more complex."

Jain adds: "What's more, we could not provide them leadership. Pressure from them drew attention andresources away from our existing, strong main business lines at a crucial time."

As if this were not enough for the hapless and thoroughly bored shareholders who have had the mortification of seeing the share price of Jain Irrigation tumble from Rs 88 in April 1996 to Rs 22.50 in June 1997, Jain laments: "As a result, over the last 18 months, the company travelled through the darkest lane in its history. In taking on impossible missions, we guaranteed for ourselves a hard fall. From the sky to the sidewalk. Harsh exigencies, constricting pressures and unpleasant events never experienced before, crowded our days."

The chairman is now seeing the merits of concentrating on the core businesses of agriculture and plastics. "These synergistic businesses gave us excellent returns during 1987-93," he says.

Recriminations over, Jain changes tack and extolls the virtues of restructuring and consolidation process which has begun in right earnest.

This involves, among other things, merger of four group companiesfor vertical integration, financial restructuring and phased divestment of non-core businesses.

The company is adopting the mantra of enterprise-resource planning (ERP) solutions, according to Jain, to improve operational efficiencies, lower costs and ensure "activity-based profitability". Jain says he will achieve this by reallocating responsibilities and "inducting cohesiveness and co-ordination in management decision-making at all levels."

Humbled by the past setbacks, Jain makes another major confession: the company will continue to be in the red in the current year ending June 30, 1998. The saving grace being substantially lower losses than that reported in the previous year.

Jain does not forget to inject a note of optimism in an otherwise bland communication with shareholders. The company, he claims, "will continue to grow at a minimum pace of 30 per cent per year in its core businesses. Once the drip irrigation industry gets recognition as `infrastructure industry', growth would beexponential."

A turnaround is round the corner, Jain reassures shareholders in his parting shot.