The case tells how A.P.V.N. Sarma, Chairman and Managing Director (CMD) in 1997 appointed, recognized the urgent need for change Singareni Collieries Company Limited (SCCL) to rescue from impending bankruptcy. SCCL has been declared “sick” (bankruptcy) by the Board for Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. It had accumulated losses of 12.19 billion rupees. As provided direct and indirect employment for people residing in the region of SCCL, the welfare of t … Read more »

The case tells how A.P.V.N. Sarma, Chairman and Managing Director (CMD) in 1997 appointed, recognized the urgent need for change Singareni Collieries Company Limited (SCCL) to rescue from impending bankruptcy. SCCL has been declared “sick” (bankruptcy) by the Board for Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. It had accumulated losses of 12.19 billion rupees. As provided direct and indirect employment for people residing in the region of SCCL, the welfare of the organization was critical not only for the mammoth employees, but also for the state of Andhra Pradesh (AP). The units of the state rely significantly on coal supplied by SCCL. The event begins Sarma various initiatives undertaken to bridge the trust deficit between management and blue-collar workers with low literacy and income levels. He discusses the new communication strategies to connect with workers. The case describes how many strikes plaguing SCCL were curbed, and order was restored in order to increase productivity. Under the leadership of Sarma, SCCL achieved a net profit of 894.1 million rupees for the fourth consecutive year in 2001. Sarma had a fixed term of five years, ending in 2001. The task for the new leader was to build on the foundations laid by Sarma and the performance of SCCL to new heights.
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from
S. Ramnarayan,
Neha Gupta
Source: Ivey Publishing
12 pages.
Release Date: 6 December 2011. Prod #: W11553-PDF-ENG
Singareni Collieries: From Gloom to Glory HBR case solution

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