Back from the Brink: Turning Escorts Around

Product Description The Escorts Group, one of India s most iconic business houses, has seen its share of major setbacks in its seventy-five-year history. Founded in 1944 in Lahore by H.P. Nanda, Escorts was first a victim of Partition. It bounced back, setting up its manufacturing base in Faridabad on the outskirts of Delhi. Over the years it was associated with leading global players such as Ford, JCB and Yamaha. The Rajdoot bikes it produced were a rage in the 1980s. But the same decade also witnessed a hostile takeover bid by Britain-based tycoon Swraj Paul, one of the lowest points in the company s life. The economic liberalisation of 1991 saw Rajan Nanda leading the foray into the services sector with the Escorts Heart Institute and a cellular telephony business. But some missteps resulted in the group exiting several of its ventures. At one point, the financial crisis was so deep that power supply to its office was cut off for non-payment of bills. From then to now, Escorts has seen a remarkable turnaround helmed by Nikhil Nanda. With flourishing businesses in the agri-machinery and construction and railway equipment sectors, Escorts reported its highest ever profit after taxes of over Rs 400 crore in 2019, with a year-on-year growth of a robust 40 per cent. It is now leading in innovation, developing electric, autonomous and hybrid tractors, and services such as Traxi the Uber for tractors. Back from the Brink is the story of how this turnaround happened: by adopting best business practices, putting the right people in the right roles, and working on relationships with dealers, suppliers and the core customer farmers. This is an eye-opening account of business management, with many crucial lessons for practitioners, professionals and students looking to understand how a much-loved quintessentially Indian company is run and revived. About the Author SEETHA is a senior journalist with thirty-five years of varied experience from covering the Babri Masjid demolition to tracking economic policy. She is the author of The Backroom Brigade: How a Few Intrepid Entrepreneurs Brought the World to India and co-author, along with R.C. Bhargava, of The Maruti Story: How a Public Sector Company Put India on Wheels. SHARAD GUPTA is Chief Communications Officer, Corporate Marketing & Brand Strategy, and Vice President & Head, Technology Innovations, at Escorts Limited. He has been with the organization since 2014 and witnessed its recent turnaround from close quarters. He has authored a number of articles for business publications and other media platforms.