A first generation entrepreneur, he took the difficult step 25 years ago after a decade of service with the Kirloskar group based in Pune. He returned to Goa in 1988 and eventually started out dealing in that company’s products. Prashant Kamat spoke to AJIT JOHN about the challenges of doing business in Goa and the plans for his company in the next five to ten years.
Herald: How has business been for you this year?
Prashant Kamat: Business is ok but not as per expectations. Compared to last year we grew by 10% but last year business dropped by 50%. My main business is Kirloskar Generators and Force Motor Vehicles. As a market Goa is very brand conscious and like international brands but at the same time are also price conscious.
Herald: Can you get into specifics with regards the performance of your group?
PK: For 25 years prior to this, I was working with them as a service manager for 10 years. I was sent to France in 1984 and then posted in Goa in 1988 as service manager. My relationship with the company is very good and it is one built on trust.
My first year turnover was 1 lakh and today it is a Rs 25 crore company. I have 5 companies in the group. Universal Engineers which looks after the servicing and spare parts for the generator from Khed in Maharashtra and part of Kerala and Karnataka. We have around 250 people in the group with 50 engineers. This business gives us around Rs 8 to 10 crore. In this business you can make money on servicing and spare parts though it is very tough with all the competition.
I believe that if there is anything on credit and book debt you will run in loss. We do major work with the Coast Guard and Navy.
Herald: What about the automobiles business?
PK: We got into this market 7 years ago with Force Motors. The Goa market is slowing as the years pass with the last 3 years really bad. Now with tourism further hit and the ban on mining still in place it will continue to remain tight. The festival season was not very good as compared to the past and we generally sell around 12 vehicles every month. Now with the drop in tourism we don’t have tourist operators coming over and picking up these vehicles.
Herald: How has the market been for Kamat Engineers?
PK: Managed by my wife, Mita Kamat it is a dealership of Honda Siel power products. We sell generators, pump sets, brush cutter and Kirloskar power tractor tiller. The generator market in Goa is tough with many players. There was a slight improvement in the market this year. We deal in 0.5 kva to 1000 kva pumps. This market is growing by 10% annually.
Herald: What are the challenges in Goa?
PK: The VAT on generators is just 5 % which is very good. The challenge is competition. If we provide good service they will stay. We have built a brand over 25 years. I always give justice to my customer.
Herald: How do you see the Goan market and your company evolve in the next five years?
PK: The State will have to resume mining and tourism will have to go back to its glory days. I see that happening. It will generate demand in the market. With regards to my company, I anticipate a rise of anywhere between 25% and 30% in my business. We will not be launching any new products. At present please remember we are growing at 10%.
My son Pramey Kamat who is already in the business will take over. He is currently handling generator sales. I will like to devote my time to social work. We presently have the Kamat Foundation which provides a Swarg Rath for Hindus to take the bodies for cremation.
