From DCM Engineering Limited’s point of view approval of scheme unlocked the growth potential. Coupled with amicable settlement of workers strike in 2003, DCM Engineering in its first year of operations after strike in 2004-05 dispatched 36,534 MT of castings (2003-04 dispatch 19,731 MT) at a net sales value of INR 17880 Lacs (2003-04 INR 9244.00 Lacs). Company was quick to gain its lost market share, thanks to its good quality track record and growth in the automobile sector. In some months of the year 2004-05 foundry touched a figure of 3600 MT dispatches which generally used to be in the range of 2200-2400 MT a month. This could be achieved by improvement of productivity and cordial IR environment without adding any new equipment or any major manpower. Continuing the same momentum the foundry has recently (effective from September 2005) enhanced its capacity to 50,000 MTPA (addition of 15,000 MTPA) by a relatively small investment of INR 600 Lacs only, mainly for balancing and de-bottlenecking. Entire funding is done by internal accruals. Anticipating rapid increase in demand, company further enhance its production capacity to 72000 HTPA in 2006-2007. Enhanced capacity is already fully booked as new products for present / new customers were developed simultaneously while implementing the de-bottlenecking project.

Company has been recently awarded best vendor award in our category by its customer M/s Eicher Motors which is recognition of company’s customer orientation.

Recognising the potential of the company, bankers are upgrading its rating to prime borrower category and taking additional exposure by doubling the limits. Indian Bank has upgraded rating of company from BBB to AAA.

D&B has enhanced rating from 1S3 (A Fair overall status of the subject) to 1S1 (The overall condition of subject is strong)

TQM INITIATIVE

The company is certified under QS 9000 and plans to get TS 16949 certification by end 2006. TQM initiatives have already been under implementation and plans are to challenge Demining Prize by the year 2009. The initiatives are aimed at brining out improvement in all facets of its operations, thus enhancing customer satisfaction, improving product quality and reducing wastages & costs besides building a strong organisation capable of taking on challenges as a preferred supplier of casting to world’s leading companies.



SAP INITIATIVE

Company has implementing mySAP ERP at its manufacturing facility to adapt international best practices based system. The Eight basic modules; Finance, Sales & Distribution, Materials Management, Production Planning, Quality, Plant Maintenance, Controlling and HR-Payroll have been implementation. The project was kicked-off in July 2005 and the system was made operational from February 2006. HCL Technologies was implementation partner for the first phase.

Company have plans to implement Core HR, Advance Planning Optimizer (APO), Customer Relation Management (CRM), Supply Chain Management (SCM), Product Life Cycle Management (PLM) and Engineering Change Management (ECM) during next three years.