In the domestic market, the Company witnessed postponement of order finalisation towards the latter part of Q4, which resulted in lower order intake by 32% over the corresponding quarter of the previous year. However, on an annual basis, the domestic order booking grew by 8%.
Led by its sustained focus on adopting innovative technology, backed by seamless execution, Triveni has emerged as a trusted service provider to customers around the world. To ensure sustained growth in brand recall, the Company has consistently strengthened its position in the Industrial sector by meeting the captive power requirements of its customers in various Greenfield and Brownfield projects. Triveni continues to drive its market growth by establishing a strong global footprint and offering wide range of state-of-the-art steam turbines, coupled with an excellent aftermarket portfolio to meet the needs of its customers round the clock.
The overall order booking for the year under review declined by 7% as compared to the previous year, on account of the COVID-19 impact. However, despite the adverse impact of COVID-19 on the international market in the last quarter of the year, Triveni’s export turnover, year-on-year, actually remained flat. On the order booking front, the Company had a good enquiry pipeline for finalisation in Q4 FY 20, and, but for the impact of COVID-19 for almost 6 weeks of the quarter, the international market order booking would have been significantly higher than what was eventually achieved.
The enquiry pipeline from the international market is strong from most of the new geographies. In the export market, the Renewables sector is driving demand, specifically from the Biomass and Waste-to-Energy projects. The Company currently has orders and installations from over 70 countries and will be focussing on new markets in the coming years. Some of the segments of focus are Biomass, Paper, Process and Sugar cogeneration and Palm oil, apart from the newly entered segments of Waste-to-Energy, Combined Cycle, Oil & Gas etc.
In the domestic market, the Company witnessed postponement of order finalisation towards the latter part of Q4, which resulted in lower order intake by 32% over the corresponding quarter of the previous year. However, on an annual basis, the domestic order booking grew by 8%. The main segments of traction in order finalisation were Sugar co-generation, including Distillery, as well as Biomass IPP, Food Processing and Waste Heat recovery.
Aftermarket business is services driven relationship management that aligns customer and OEM goals for mutually beneficial outcomes. This function is the custodian for managing the Company’s relationships, and for promoting customer retention and loyalty all through the turbine’s life-span and beyond.
The Company’s aftermarket business was further fortified during the year with focus on turnkey services, automation, transformations, refurbishing and efficiency improvements solutions, not only for the Triveni brand of turbines, but also for other brands of turbines of any age, in any industrial segment and at any global location.
The Company has leveraged technology to enhance its customer focus, with its concerted digitisation thrust, aided by its established remote monitoring and diagnostics solution “Triveni Touch”, specially developed for turbines. This solution provides both, its field service engineers and the turbine asset managers of its customers, visibility of turbines operating parameters and real-time status updates from anywhere. It generates reports, helps analyse performance trends, gives instant notifications, and provides peace of mind to the asset managers through a real-time dashboard which is visible through an app on his/ her mobile phone from any part of the world. “Triveni Touch” can anticipate any equipment issues for providing preventive solutions, thus avoiding unexpected downtime.
The Triveni team of trained and experienced engineers utilises the latest communication tools for live and secure customer engagement, with actual Facetime via screens of personal devices, irrespective of large distances and varied time zones. This gives customers the added comfort of having access to expert guidance at the click of a button. The Triveni teams embrace the virtues of remote service support and follow standard operating procedures to help troubleshoot any issues that the customer faces, and recommend solutions while saving precious time.
Webinars have been organised by the Company across industries, through a series of knowledge-sharing sessions attended by key personnel of large customers in India and overseas.
With focus on providing refurbishment solutions to other brands of turbines, the aftermarket business has successfully ventured into new geographies. The “Triveni REFURB” sub brand is promoted through a robust multi-channel social media presence, not only generating interest in hitherto unexplored industry segments such as Geothermal Energy Providers, but also securing business.
Nearly one-third of the aftermarket business order booking is currently being contributed by international markets.
The World Health Organization declared a global pandemic of the novel Coronavirus disease (COVID-19) on February 11, 2020. The pandemic has severely impacted the world economy including India. The operations of the Company were also impacted, particularly from the last week of March 2020. During the lockdown period, both the manufacturing facilities and all sales and service offices were closed. However, our employees could quickly respond to the challenge by working from home and remote locations. With necessary IT and other digital support, the new working norm of working from home stabilised fast and the Company is able to support customers needing attention.
The Company resumed partial operation from the third week of April 2020 following government guidelines and gradually stabilised the manufacturing process to near normal towards the middle of May. During the process, the Company faced upheaval challenges in the supply chain and logistic system as certain State borders were intermittently closed, prolonged lockdown in some of the States and restriction of movements. Non availability of labour force in our major vendors’ base also impacted sourcing of raw material and components. However, the Company could partially overcome the challenge through alternative sources of supply.
Due to the above bottlenecks in logistics, closure of customers’ site and suspension of travel, there has been an impact on production, revenue, customer services and order booking.
The COVID-19 pandemic has disrupted demand and supply chains across industries, negatively impacting the business of almost all companies and driving the global economy towards a recession. Governments in several countries have imposed stringent lockdown in a bid to contain the spread of the disease. This in turn has forced companies to reconfigure their investment strategy and slow down the order finalisation process, impacting our business.
The travel restriction has significantly impacted our revenue stream as our service engineers are unable to travel at customers’ sites and our sales team is unable to attend tender meetings and for order finalisation. All these factors collectively have impacted our International business significantly. Domestic business, on the other hand, has an impact of lesser magnitude. However, on the positive side, our enquiry book position still remains healthy. The loss of business due to travel & other restrictions is partially overcome with digital marketing and other remote control tools such as video conferencing tools and secure digital transference of files and data.
The Company also had its share of impact due to COVID-19, which affected its order booking and revenue recognition in Q4 FY 20. The adverse effect of COVID-19 has significantly impacted Triveni’s short-term outlook and the Company is taking prompt actions to adapt its operations. With COVID-19 impacting domestic as well as global markets and economies, and based on the current situation, the Company may witness a decline in revenues and order booking in H1 FY 21. We believe FY 21 key financial indicators most likely will be lower than last year.
The Company has started booking orders by deploying digital technology. Digital platforms are being used to be in touch with customers. Customer focussed webinars and virtual walk through of our facilities have been highly appreciated by our customers. ‘Work from home’ is continuing, limiting attendance in offices and factories following safety guidelines. Cost of operations has been systemically rationalised to cope up with the revenue challenges during these pandemic times. Since the onset of the pandemic, the Company’s primary focus has been on securing the health and safety of its employees while maintaining business continuity. Social distancing, compulsory wearing of masks, daily measuring of temperature and blood oxygen and frequent washing of hands are some of the safety measures mandated in our internal safety protocols in addition to limiting attendance in office. The Company has also upgraded its medical facilities at factory with its own ambulance for employees and their families.
Despite short-term disruptions, the Company is confident in the underlying resilience of its businesses and operating model ensuring safety of employees.
The Company has two state-of-the-art and eco-friendly manufacturing facilities at Bengaluru (Peenya and Somapura) to manufacture steam turbines up to 100 MW capacity. Both these facilities are certified for AS9100D Rev 2016 / ISO 9001:2015 Quality Systems, ISO 14001:2015 Environmental Systems and ISO 45001: 2018 Occupational Health and Safety Management Systems.
The manufacturing facility at Peenya has been awarded the prestigious Platinum Rating by the Indian Green Building Council (IGBC). This is the highest green rating certification for Factory Buildings. The manufacturing facilities have bestin-class multiple axis CNC machine tools, fully equipped test beds for mechanical run test of steam turbines with wireless data recording systems, IoT-enabled Industry 4.0 systems, biometric-enabled Automatic Tool Dispenser, elaborate operating processes and SOPs, trained operating staff, as well as rigid quality assurance processes to ensure high quality of the product through all stages of manufacturing. The two cardinal principles in Triveni manufacturing are ‘zero defect’ and ‘do it right the first time’. This ensures the highest level of quality and timely delivery of products to international and domestic customers.
The manufacturing facilities are also equipped with High Speed Balancing Vacuum Tunnels Machine of reputed make, large sized Coordinate Measuring Machine (CMM), Non-Destructive Testing (NDT) facilities and other advanced machinery to support new product development. This enables the Company to offer new avenues of customer services in precision balancing of rotors, not only for turbines but also for all rotary equipment such as compressors, alternators, pumps, and impellers, to further augment its refurbishing business. The Company offers customised high quality turbines in the range of 0.25 MW to 100 MW, completely made in India in line with the Indian Government’s ‘Make in India’ campaign – across all stages of designing, engineering, sourcing, manufacturing and testing. The Company’s agile manufacturing set-up has enabled it to successfully compete with MNCs and retain high market share consistently.
The world-class Research and Development unit of the Company is recognised and registered as an in-house R&D unit by the Department of Scientific and Industrial Research (DSIR), Government of India. It is engaged in developing efficient and cost-effective turbomachinery that matches the latest international quality standards. Based on the fast-evolving market demands and trends, and in response to the continuous feedback received from its own installed turbines generating over 13 GW globally, the Company undertakes continuous upgradation of its products. This has resulted in high-power dense, cost-competitive, robust and efficient turbines that meet the requirements of the global customer.
Collaborating with globally renowned research institutions, such as IISc Bangalore, Cambridge University UK, Politecnico di Milano Italy, IIT Madras and IIT Bombay, through various research programmes and joint studies, the Company continues to be a preferred industrial partner for Indian Government-funded programmes of MNRE, DST, Ministry of Power and the Indian Navy. Extensive in-house validation and testing of newly developed rotary components in European labs is conducted, along with strict monitoring of performance parameters in the field, before commercial deployment, in order to ensure trouble-free performance. The Company has well-defined processes for development, testing, field feedback and continuous advancement of technology through in-house processes, and through association with global research and scientific institutions, including in Europe and USA.
The Company has installed in-house load test facilities with dynamo meter for power test of the newly developed aero profiles. This facility enables the R&D team to internally test the design and off-design characteristics of aero profiles of HP, IP and LP sections of turbine. The facility can test profile losses, secondary losses and leakage losses, and compare the same with CFD predictions. This helps in accurately predicting the turbine stage performance and removes uncertainties of field power.
Triveni continues to develop cost-competitive and increasingly efficient models, reducing carbon footprint to produce power solutions that meet the requirements of its diverse international and domestic customers. These include customised solutions for specific industrial applications, such as Cement, Distillery, Oil and Gas, Naval and Government projects in new technology areas. The application segments of the Company encompass Waste-to-Energy, Combined Cycle, Process industries, Renewables, Captive and Co-generation, among others. In line with industry trends, the Company has been diversifying into different types of turbines and other renewable energy products that focus on high efficiency cycles, including injection applications, distillery processes, and supercritical CO2 turbines.
The Company is constantly upgrading and improving its steam turbine designs for optimal performance to meet the increasing power solution requirements globally. During the year, GeoThermal application-specific technology enhancement was also carried out. Another thrust area of the Company has been in the Oil and Gas market, where application-specific and API code compliant solutions are increasingly preferred by global customers.
Development of advanced technologies, along with improvements and research in newer product variants, leads to the creation of valuable in-house intellectual property. Such innovations and technological improvements demand immediate protection, and therefore the creation and protection of the Intellectual Property (IP) portfolio is of paramount importance for the Company and all its stakeholders. A dedicated team of IP specialists works closely with the R&D team from planning and conceptualisation to the manufacturing stage, so that the generated Intellectual Property is adequately captured and protected.
The Company has in place a robust IP strategy for the creation and protection of its long-term IP assets, to secure and preserve its technological advantage over its competitors. In line with its global focus, the Company constantly undertakes patent and industrial design filings in different international jurisdictions, even while continuously enhancing its IP portfolio in India. The Company has filed for patent protection and product design protection in India, Europe, South East Asia, and in the United States of America, and plans to protect its IP in the new international markets that it serves. A substantial number of Intellectual Property Rights have already been awarded to the Company in India and other jurisdictions. The Company had filed 269 IPRs in the market globally till March 2020.
The Company has procured, and also developed in-house, a comprehensive suite of software and automation technologies for industrial applications. These cover the entire lifecycle - from product design and production to aftermarket services, as well as for commercial and financial applications. In recent years, the Company has laid greater emphasis on further digitisation and automation, specifically dealing with project management and remote monitoring of deployed machines, thus paving the path for embracing IoT and Industry 4.0 in a big way. Continuous upgrade of these applications, to bring them at par with the latest available technology, is undertaken as per business requirements. The applications are mostly customercentric and aim to optimise costs while enhancing business productivity. The Company plans to further automate and upgrade its array of software with constant evaluation, while also strengthening its digital security architecture to address the rapidly increasing cyber security threats.
Triveni has, over the years, built a sound global supply chain, covering a range of countries - from Asia to Europe and North America, apart from developing dedicated suppliers in India. The Triveni supply chain has a unique advantage in terms of cost, due to bulk purchases owing to the high production volumes of turbines. Cost efficiency, high quality checks, on-time deliveries and effective management of working capital have always been the key focus areas for the Company’s supply chain.
With all suppliers treated as ‘Partners in Progress’, the Company has developed an elaborate code of conduct to regulate its dealings with suppliers. Following a fully transparent approach, the Company shares Annual and Quarterly production and supply plans with suppliers to ensure that their production activities are streamlined with its own requirements, and also to ensure that the deliveries are on schedule. There are regular and planned visits to suppliers to appraise them about current business requirements of the Company. Inputs and feedbacks are given to suppliers on quality, specific customer needs, technology upgradation, compliances to international standards, new product developments, quality plans and value engineering ideas. This ensures seamless functioning of the supply chain across diverse supply chain partners, and helps the Company maintain its competitive edge through optimisation of cost, quality and delivery parameters.
The Company periodically conducts the audit of its critical suppliers, to identify issues of concern and initiate corrective actions well in advance. In view of the volatile supply chain position due to the recent international geo-political developments, it constantly conducts supplier risk analysis, with mitigation actions on key performance parameters, including on-time deliveries, quality and cost.
The Company is currently exploring and assessing ways to minimise risks by developing alternative suppliers in different geographical areas and equitably distributing the orders. This ensures a lean supply chain, with consistent advantage in terms of volume discounts and distributed vendor base, and also helps cover the risk of cartelisation by vested vendors. The Company undertakes periodic vendorwise spend analysis, and has established adequate control processes with suppliers to ensure compliance standards, desired quality, good ratings and loyal trade relations. The Company partners with suppliers to evaluate technological innovations in their products and services, and incorporates these changes to improve its technological features, quality and cost competitiveness.
The Company maintains strict controls on inventory through product standardisation, which improves serviceability of its parts. This also helps the Company improve its material procurement planning, and optimise the supply chain cost through long-term rate contracts with suppliers. The Company ensures that suppliers have subscribed to international quality standards such as ISO 9001, ISO 14001, and comply with international regulations on health, safety and environment.
Triveni has a robust and reliable logistics system to ensure that turbines and other ancillaries are safely delivered to customers across the globe in a timely and safe manner.
Triveni’s design, manufacturing, supply chain, project execution and service capabilities are benchmarked to the highest levels of international quality and responsiveness. A digital process of quality controls and assurances is evolving fast to ensure complete customer satisfaction. During the year, the Company further reinforced the foundation of its Quality Operating System at TTL (QOS@TTL), aiming for Zero Defect and Total Customer Satisfaction.
The Company remains consistently focussed on building a robust quality culture at all levels. This was amply demonstrated in the enthusiastic employee participation during the week-long Quality Day Celebrations in November 2019. ‘Importance and Future of Quality’ was the main theme for these celebrations. More than 600 man-days of quality related learning and development opportunities were created for all, thus affecting product quality directly. This, along with the Kaizen programme being run at the Company consistently, ensured that all employees remained engaged in quality compliance and improvements.
With refinements in the Company’s turbine technology continuing, special focus is given to preventive design philosophy, resulting in faster and error-free execution of the API range of turbines. Detailed problem solving and improvement-oriented approach to handling defects has substantially reduced designrelated customer complaints.
Years of instilling quality awareness in the execution teams, both at the manufacturing facilities and on site, made it possible for the Company to continue with its sustained quality improvements during FY 20. This was done by strengthening process checks and risk-based intervention by QA.
At Triveni, a vital driver of success is the suppliers, who continue to make significant contribution to the deliverables. The Company’s multi-pronged approach to improving its supply chain has paid dividends in terms of quality improvement. And more benefit is sure to come in the years ahead, led by the Company’s risk-based approach to qualify, evaluate and develop suppliers.
All the above functional focus areas are continuously strengthened with three process focus areas:
risk-based approach now entrenched in everything that Triveni does, with the end-of-year COVID-19 crisis adding another dimension to ensuring business continuity.
to international quality standards (API, ASME, AGMA, NEMA, IEC, etc.) and global customer requirements (CE, GOST, SONCAP, etc.).
by focussing on cost of poor quality and taking actions to improve profitability.
The result of building of this QOS@TTL foundation was indicative of Triveni’s success in the journey towards Zero Defect and Total Customer Satisfaction.
The Company considers its human capital critical to its success. It believes that its people enable business growth through delivery of quality products and services crafted to meet the needs of customers, and help enhance business value.
The Company’s HR strategy is aimed at achievement of business objectives of growth, while creating and delivering superior and unmatched customer value. This strategy focusses on imbuing the organisation with a culture of continuous learning, innovation, performance, customer orientation. The Company believes in enhancing employee engagement, as well as the growth and welfare of its people. It has implemented various initiatives aimed at augmenting the organisational capabilities that it believes will enable it to sustain competitiveness in the global marketplace. The Company focusses on attracting, retaining and developing talent.
The Company’s HR Management processes are aligned to the goal of enhancing organisational capability and agility for constant innovation and change, as well as its readiness for seizing the market opportunities. At the same time, its steadfast commitment to investing in talent management practices ensures that these are relevant and effective, and drive performance and achievement of the highest order.
The Company endeavours to build its talent from within, and as a result of this effort, 50% of its present workforce is home grown. This has given the Company a strong competitive edge over technology, products, services and processes. This has been enabled through the creation of a dedicated, world-class, inhouse training facility – the ‘Learning Centre’, which is housed in a green environment conducive to learning. The Learning Centre ensures continuous and unobstructed learning for all employees, including the young engineers recruited from various campuses. These youngsters undergo a structured 2-years training programme before being inducted into various departments. The Learning Centre is equipped with multiple classrooms, Computer Based Product Training Lab (CBT), a Library, as well as a highly trained faculty from in-house and external sources.
The Company has embarked on various Employee Engagement Programmes promoting a culture of celebration and collaboration. The Programme also takes care of the physical, mental and emotional well-being of the employees.
Triveni’s robust performance management system is designed to achieve Company and individual goals through a wellformulated planning, review and monitoring mechanism. The system also covers the rewards and recognition process, as well as employee development, through monitoring of competencies. The Company continues to drive a culture of high performance, development and growth of employees. The Company also continues to enhance safety and security at the workplace by prescribing policies and procedures, creating awareness and imparting trainings. It has institutionalised key policies like the Prevention of Sexual Harassment policy.
The Company is focussed on building Project Management and Quality Management Skills for Projects, Customer Care and Erection Commissioning, and also imparts Negotiation Skills training to a large section of employees facing customers and vendors. It has also introduced the Supervisory Development Programme and Continuous Improvement Programme (CIP) as part of its efforts to create a multi-level learning environment.
During the year, the Company provided 7,090 training man-days, which translates into approximately 10 man-days of training per employee. It launched multiple training programmes in various facets, including but not limited to upgradation of technical skills, soft skills, performance development, as well as environmental and EHS, commercial and compliance capabilities. Employees are encouraged to build their capabilities through classroom trainings, e-learning modules, learning through subject experts and peers, outbound trainings, on-job learning, mentoring and orientations.
Nurturance of an organisation-wide EHS climate is a key priority area for Triveni. Both the manufacturing facilities of the Company are eco-friendly and zero discharge plants, complying with ISO 45001 (Occupational Health and Safety Assessment series) and ISO 14001 (Environmental Management System) International Standard requirements. Both facilities boast of lush green nature cover with natural landscaping. During the year under review, both the plants implemented the Integrated Management System (IMS), comprising the ISO 14001 EMS standards and ISO 45001 OHSAS standards, to create a robust Environmental and Occupational Health and Safety System Standards for the overall benefit of the Company. Employees are involved in ensuring good EHS practices through various joint management committees. The entire campus is covered with electronic surveillance through CCTV and IT-enabled security systems.
Environmental Management programmes are drawn with specific Key Performance Indicators each year to improve the environmental performance of the unit. Ambient air quality is ensured through proper maintenance of DG Sets and Boilers. The entire sewage water is treated at the plant, and used for landscaping and gardening. Also, 300 KW of solar panels are installed on the rooftop of the Peenya manufacturing facility, generating about 3.5 Lakh Units of non-conventional electric power, catering to the energy requirements of the factory. Energy efficient LEDs are introduced in a phased manner to replace the conventional CFLs / Fluorescent lights. Both units are also provided with recreational facilities, with indoor and outdoor games and fitness equipment for all employees. The Company also has rainwater harvesting facilities, maintains natural water bodies, and recycles water for garden maintenance.
Triveni has scaled up its safety regulations to address the COVID-19 pandemic. The premises are sanitised on regular basis. Social distancing and wearing of mask are among the protocols strictly enforced in factories and offices. All safety directives issued by Central and State Governments, including adherence to the maximum number of employees permitted per day, are being followed. Thermal screening and hand sanitising are being done for all persons entering the office premises. Awareness creation on prevention of COVID-19 is done on daily basis among all sections of employees, including contract labour.
The global economic growth in 2019 slipped to 2.3%, though slow recovery was seen from the latter half of the year due to the USA-China trade deal and frequent rate cuts by FED to shore up the US economy. However, the unprecedented global pandemic, COVID-19, brought global economy to a standstill in the last quarter of the fiscal. It opened floodgates for Central Banks in various countries to announce stimulus packages to safeguard human life and eventually restart the economy. The Government of India also announced a fiscal and monetary package to the tune of USD 266 billion to bring the Indian economy back on track. The focus on Self-Reliant India will also augur well for the Company.
Needless to say, the lockdowns in India and other countries resulted in considerable loss of opportunities for order booking, both in domestic and international markets, for almost two months. Even after the lockdowns were lifted several customers continue to face difficulty in financial closure, with their banks forcing them to hold despatches. Sales, profit and cash flows, thus, are likely to be affected in the remaining months of FY 21.
Notably, however, despite the slowdown across major international markets, the Company was able to secure orders from Europe, South Africa, LATAM, South East Asia and Australasia, together with the domestic market, during the year. This will give the Company an important advantage in its efforts to get back on the growth trajectory.
Also, all attempts are being made to minimise the COVID-19 related impacts, though, given the situation with the customers – both in terms of funds availability as well as finances, some situations are out of the Company’s control. With a close control on expenses, which include manpower rationalisation and administrative overhead reduction, apart from aggressive continuance of the value engineering and cost reduction programme on the manufacturing front, the Company believes it will be able to maintain its margins and generate positive cash flows. With a good outstanding order book, together with a healthy pipeline of enquiries which are expected to be converted into orders in the coming year, the Company is well positioned to maintain its leadership position.
The growth potential of foreign subsidiaries to expand in the international market is encouraging. Through these foreign subsidiaries, the Company has increased its capabilities to connect with global EPC players and industries. The subsidiary offices, being located in close proximity to customers and capable of providing specialised services, give confidence to customers. They also help to promote the brand strongly, which is essential and helps the Company effectively pursue its strategy to achieve market penetration on a sustainable basis. During the year, the Company engaged with industries from various segments, such as API, Waste-to-Energy, Combined Cycle, and Process industries of global scale through its subsidiaries. The Company expects that the foreign subsidiaries will further augment business growth in the coming years.
In order to improve cost efficiencies and consolidate the marketing infrastructure, the marketing activities in Europe region were shifted during the year from the subsidiary in the UK to the subsidiary in Dubai. This has resulted in better supervision of market operations and cost rationalisation. The subsidiary in South Africa has been further strengthened, mainly to cater to the aftermarket segment of the region.
GE Triveni Limited (GETL), Triveni’s joint venture company with General Electric, is engaged in the design, supply and service of advanced technology steam turbine generator sets, with generating capacity in the range of above 30-100 MW. The flange-to-flange turbine is manufactured cost competitively at the Company’s world-class facilities located at Peenya and Somapura in Bengaluru. The complete project is executed by GETL in accordance with GE’s manufacturing, quality and supply chain standards and processes, which include certification of suppliers, adherence to environment and health standards, and other ethical requirements.
In FY 20, GETL achieved a total revenue of ₹ 1.29 billion with a profit after tax of ₹ 131 million.
During the year, the Company filed a petition, on June 10, 2019, under the provisions of Sections 241, 242, 244 of the 2013 Act before the National Company Law Tribunal, Bengaluru (“NCLT”), seeking specific reliefs to bring to an end the matters of oppression and mismanagement in the joint venture company viz. GE Triveni Ltd (GETL) by the General Electric company and its affiliates (GE). The grounds on which the Company was constrained to file the petition were certain actions of GE which were oppressive, fraudulent, prejudicial, harsh and burdensome to the interest of GETL, including but not limited to lack of probity, diversion of business, violation of non-compete, conflict of interest by GE employees/nominee directors etc. Instead of submitting its objections on merits to the said Company petition, two of GE Affiliates filed applications before the NCLT, praying to refer the dispute raised in the Company’s petition to arbitration. The matter is now pending adjudication before NCLT, Bengaluru.
D I Netherland BV, affiliate of GE and Joint Venture partner in GETL, invoked separate arbitration proceedings before Arbitration Tribunal under the UNCITRAL Arbitration Rules, 1976, in the United Kingdom and filed a statement of claim on June 1, 2020, alleging violation of certain terms of the JV Agreement by the Company. The claims made are based on estimation and amounts are not quantified with precision. The Company firmly believes that the allegations raised are unsubstantiated, untenable and unsustainable. The Company will submit its defence and counter claim, if any, in due course. Accordingly, at this preliminary stage, no provision is considered necessary in the standalone financial results.