Sunil Hitech Engineers Ltd. : The success saga
The main promoter of the company Mr. Ratnakar M. Gutte, left home in 1984 and shifted base to the neighbouring city. There he started working with a power contractor.He worked a helper, welder, fitter, forman. In 1984, he was working as chief foreman, heading a 40-member team with BIW, a Bhusawal based firm. One day, he was told that the contractor has left the work incomplete. The company then asked R Gutte to take up the work.
Initially, Mr Gutte denied the job, because of dearth of capital money. The company then urged him to continue the contract on the terms that they will pay him his salary, and any loss incurred will be borne by them.
That was the first contract for Mr R M Gutte following which similar contracts started coming his way. In the same year, in 1984, he started Sunil Engineering Works, named after his elder son.
SEW struggled to plant it’s feet for the next 10 years, till 1994. Mr R Gutte executed contracts in various places in Maharashtra and MP. The turning point for this toddling company with sales worth Rs 50-60 lakh per annum came in ’94, when BHEL awarded it a contract worth Rs 2.7 crore. At that time, the company did not own proper machinery or equipments to handle such a big project.
However, special permissions were obtained and BHEL itself provided necessary equipments. The SEW completed the work before time, in 18 months, whereas the time-frame was for 24 months. The quality work provided by the SEW established fresh credentials for the company. It started getting contracts from areas like Vindhyachal, Suratgarh, Panipat and Khapadkheda. Thus the SEW started on its big journey. After that, there was no looking back either for the company or for Mr R Gutte.
The company was converted to Private Limited from proprietorship in 1998. A major achievement of SEW was to obtain ISO 9001:2000 certification. There were not many companies bothered about certifications at that time. Being a methodical person, Gutte wanted to establish order in every sector of his company. He wanted to ensure flawless administration and meticulous documentation. Most of the documentation was done in line with BHEL which was responsible towards guiding SEW in many sectors. The same year, the company touched a sales high of Rs 11 crore.
The period of 2001-2004 was toughest for the infrastructure industry. But, against all odds, Sunil Engineering Works not only survived, but also recorded a growth of 3.4 times touching total sales of Rs 35 cr in six years till 2004. The company reached its second landmark in ’04 when it was commissioned directly by the National Thermal Power Corporation (NTPC). The contract was for a work worth Rs 35 crore. Being associated with India’s largest power producing company which the world’s third largest brought recognition for the company.
In 2005, Sunil Hitech Engineers was incorporated. Construction of new office building started in 2005. It was when Mr Sunil Gutte thought of making the company a public limited. He went to Mumbai and got valuations which finally convinced the CMD and the CEO. Sunil Hitech became a BSE and NSE listed company. In fact, SEW was the first company to go for the listing in Nagpur after a break of 16 years.
With the money generated through public listings, Sunil Hitech procured equipments and machinery needed for smooth conduction of works. Simultaneously, the company repaid previous bank loans and became a brand. From a private limited company, which is considered to be a ‘risky company’, Sunil Hitech became Public Limited, a risk-taking company. As the company grew in image and stature, it planned to diversify. A factory was set up and it got into transmission and distribution in association with Mr Pampattiwar. The SHEL also started undertaking jobs from steel plants.