With as many as nine plants in Satara, Cooper Corporation has kept adding a wide range of engines to its portfolio and has also diversified into automotive and non-automotive components with its sights set on gaining a huge chunk of the country's engine market

Cooper Corporation Private Limited is one of the country's major manufacturers of engines. The legacy of the company dates back to 1922 when Sir D B Cooper, an engineer and entrepreneur blessed with rare genius and foresight, established a manufacturing unit in Satara, Maharashtra. His astute vision saw the historic town of Satara witness a new wave of industrialisation, turning it into a successful and prosperous region without losing any of its cherished values. Cooper Corporation's ceaseless commitment to quality, service and product innovation has consistently kept pace with the changing market needs worldwide.

The company's rapid strides in the global market bear testimony to this fact. Over the years, the company has invested in the latest state-of-the-art technology across 75 acres of land at nine plants in Satara with the help of experienced consultants from all over the world. Today Cooper supplies automotive spare parts and engine components to all the leading manufacturers in India and across the world. Excerpts from an interview with Farrokh Cooper, the company's chairman and managing director:

Could you elaborate about your product portfolio?

Cooper Corporation has an entire range of 2-, 3-, 4- and 6-cylinder diesel engines from 15 HP to 280 HP, which are designed for industrial applications. These engines are designed to meet all future emission norms while delivering the best in fuel efficiency. The 2-cylinder Cooper engine delivers power from 15 HP to 55 HP @ 3,600 rpm; the 3-cylinder engine delivers power from 50 HP to 118 HP @ 2,200 rpm; the 4-cylinder engine delivers power from 100 HP to 160 HP @ 2,400 rpm; and the 6-cylinder engine delivers power from 150 HP to 280 HP @ 2,200 rpm. Cooper also manufactures various automotive components and non-automotive components, parts and gensets.

Could you highlight some of the company's recent achievements?

We have now successfully launched gensets in cold climate countries like Ukraine, which operate at even -30?C ambient temperature. Also, Cooper is the first in the industry to be ready with products that are CPCB II (Central Pollution Control Board)-compliant, part of the new long-awaited legislation on stringent emission norms, effective April 1, 2014. The company is ready with the entire range of generators ranging from 10 kVA up to 180 kVA complying with these norms. Meanwhile, there is a plan to start an aluminium foundry division to cater to the requirements of the automotive market with Buhler-make high pressure aluminium die casting machines, Susha-make low pressure aluminium die casting machines and CAT-make gravity aluminium die casting machines.

How has been the company's export performance?

Cooper Corporation has recently exported 10 KVA - 200 KVA gensets to Panama, which has a tropical climate with temperatures being uniformly high, relatively humid and with very little seasonal variations. The Cooper gensets provide customised voltage and frequency power and have been tailor-made to suit these conditions. The output frequency of a generator is one of the crucial parameters that determine a generator's rating. Cooper ECOPACK gensets meet the Panama frequency rating of 60 Hz to match the output of a standard electrical grid or the frequency rating of the appliances. Cooper gensets provide frequency switches and engine control switches with customised frequencies as per the desired requirements of the country. The company has earlier successfully catered to orders from countries like Saudi Arabia, Ukraine, Afghanistan, Middle East, etc., and these export orders have helped us to expand our global footprint.

How has the company successfully battled the recent slowdown?

At Cooper Corporation we have always believed in providing quality products, timely delivery and prompt after sales service. As a result, despite the slowdown the company has witnessed growth of 30 per cent year after year. Also, our diverse business verticals like automotive, marine, industrial, agricultural, and garden and lawn have helped us sustain this pace of growth every year.

What in your view are the opportunities and prospects in the future?

Cooper wants to evolve as a leading engine manufacturer of diesel/gas engines in the country, designing as per world-class technology and meeting international standards. Going forward the company wants to further strengthen its foothold with its entry into new segments like aluminium, agricultural engines, vehicle projects, etc. Our new models in the engine business will create ample opportunities for the company and help us become the largest manufacturer of components and engines. The expertise and capabilities of the company will help cater to the increasing demand for engines with specific technical requirements, stringent CPCB norms, and more power and fuel efficiency.

What is your expectation from the new government?

Some of the expectations are as follows:

• Labour reforms are essential. The government should decentralise and debureaucratise decision making to the grassroot level
• It should simplify norms connected with sanctions
• More export incentives should be given to exporters, which will provide an overall boost to the manufacturing industry and help generate foreign exchange reserves for the country, and
• Reforms are required in taxation and tax administration.

Reforms are also called for in the power sector such as:

• Consistent and transparent policy framework for generation of power from renewable sources, as for example solar power, should be in place
• There should be captive consumption of power interstate, i.e., power generated in one state should be allowed to be consumed by the generator in his manufacturing plants located in other states, and
• Reduction is needed in cross subsidy in power cost.

Could you elaborate about what reforms would you like to see in taxation?

In terms of direct taxation:

• Export-oriented units (EOUs) should once again be encouraged and income tax exemption given for the same
• The government must reform the working of the Income Tax Department to see that appeals before appellate authorities are disposed of within a year of filing; applications for refunds should be disposed of within one year; and disciplinary action should be taken against errant officers. The assessing officers should be made answerable for disallowing rightful or reasonable claims and making arbitrary and ad hoc additions to income
• Investment in fixed assets should be encouraged by increasing depreciation limits and investment allowance
• There must be a withdrawal of MAT as it works as a disincentive for efficient companies
• Double taxation of the same income, once at the net profit level and again on distribution of the same by way of dividend, should be avoided
• TDS provisions should be rationalised and the deductor should not be penalised for technical lapses in complying with TDS provisions
• Assessees should not be denied credit of tax deducted at source for mistakes of the tax deductor while uploading his TDS returns
• Accelerated depreciation should be allowed on investment in non-renewable energy sources like windmills, solar plants, etc., and
• It should also declare awards for performing industries not only in cities but rural areas also.
• In terms of indirect taxation:
• Stringent and burdensome provisions of service tax, especially relating to reverse charge mechanism should be done away with
• EOUs should be allowed to export goods on payment of duty and claim subsequent refund
• Rates for duty drawbacks should be increased, and
• SHIS license entitlement scheme should be continued.