Indian Electricals

INDIAN ELECTRICALS LIMITED

In May 1964, the Management of Indian Electricals Limited was faced with a question of whether or not to accept a trial order placed by one of their clients for manufacture and supply of 250 Stationery Vending Machines. From a comparatively small beginning in the 1930’s the Company had steadily grown to its present status of a Public Limited Company with a share capital of Rs.1.25 crores. The Company was engaged in two major activities:

1. Manufacturing of a wide range of products,

2. Selling plant and equipment imported from its foreign principals.

The manufacturing activities covered plant and machinery, industrial equipment for various industries, transmission gears and control panels. In the field of selling, the Company represented over 200 foreign principals supplying a diversity of plant and equipment. The important products imported were construction equipment and a complete range of industrial machinery including control and automatic equipment.

The company was representing Bolten & Co., London, for automation equipment. Bolten & Co. was trying to sell Stationery Vending Machines to a client in India through direct negotiation. Sample machines were supplied by them to the client who had expressed keen interest in buying a large number of these machines. The only reason why it could not do so was the shortage of foreign exchange availability in India.

Bolten & Co. were considering the possibility of manufacturing these machines in India. While Bolten & Co. had been approached by a few Indian parties, who were keen to collaborate with them on such a project, they preferred that Indian E1ectrica1s Limited should undertake manufacture and selling of these machines. Accordingly, negotiations were commenced about this proposal. As there was only one client in India for these machines, Bolten & Co. proposed that Indian E1ectrica1s Limited sell directly. Bolten & Co. requested the client to get in touch with the Indian...