EEL has also closed down its pasteuriser and bottlewasher businesses, besides winding up operations at its motor manufacturing plant. Further, it has scaled down operations in the multi-utility vehicle (MUV) business, which catered to the defence and mining industries.

"The idea is to get out of businesses where the company does not have sufficient competitive advantages. We will focus on our core business of manufacturing compressors. The company is looking towards a major leap in its export businesses. We are also gearing up for some aggressive marketing for our `Horizon' series of compressors," the official said. EEL earlier supplied brakes to Telco for use in the latter's heavy vehicles.

However, business has remained dull for the last couple of years. EEL's auto products operations included the production of wiper blades and horns for locomotives in limited capacities. The company had claimed some time ago that the sale/closure of its pneumatic brake, pasteuriser and bottlewasher businesses, together with its motor manufacturing plant accompanied by a gradual scale-down of its MUV business would help it generate close to Rs 4 crore which would contribute towards debt reduction and capital investment.

EEL is currently outsourcing motors. Moreover, the rationalisation decision helped the company trim down its workforce by offering a voluntary retirement scheme (VRS) to 275 employees during the first six months of the current fiscal.

The company, in the meantime, has posted a net profit of Rs 1.97 crore for the second quarter of 2000-01 against Rs 2.28 crore earned during the corresponding period in the year-ago period on a turnover of Rs 39.89 crore (Rs 31.21 crore). The net profit takes into account a VRS component of Rs 2.16 crore (Rs 12.68 lakh) for the quarter. The total VRS paid to the 275 employees amounts to Rs 7.67 crore.