Singareni Collieries: From Gloom to Glory

Ramnarayan, S and Gupta, N (2011) Singareni Collieries: From Gloom to Glory. [Teaching Resource]

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he case narrates how A.P.V.N. Sarma, chairman and managing director (CMD) appointed in 1997, realized the pressing need for change to rescue Singareni Collieries Company Limited (SCCL) from impending bankruptcy. SCCL was declared "sick" (bankrupt) by the Board for Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. It had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the well-being of the organization was critical not only for the mammoth workforce, but also for the state of Andhra Pradesh (AP). The power generation units of the state relied significantly on the coal supplied by SCCL. The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collared workers with low literacy and income levels. It discusses the novel communication strategies to connect with workers. The case describes how numerous strikes plaguing SCCL were curbed, and order was restored to allow productivity to rise. Under Sarma's leadership, SCCL achieved a net profit of 894.1 million rupees for the fourth consecutive year in 2001. Sarma had a fixed tenure of five years which ended in 2001. The task for the new leader was to build on the foundations laid by Sarma and take the performance of SCCL to new heights.

Affiliation: Indian School of Business
ISB Creiators:
ISB Creators
Ramnarayan, S
Item Type: Teaching Resource
Uncontrolled Keywords: Employees, Change management, Leadership, International business, Organizational behavior, Communication
Subjects: Organization Behavior
Depositing User: Gurusrinivasan K
Date Deposited: 17 Apr 2021 11:35
Last Modified: 17 Apr 2021 11:35
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