The case describes how APVN Sarma, Chairman and Managing Director (CMD), appointed in 1997, realized the urgent need to change to save the Singareni Collieries Company Limited (SCCL) from the upcoming bankruptcy. SCCL has been declared "sick" (bankruptcy) of the Industrial and Financial Reconstruction (BIFR) twice, in 1992 and 1996. He has accumulated losses of 12.19 billion rupees. As provided direct and indirect employment for people living in the region, SCCL, welfare organizations is crucial, not only for the mammoth work force, but also for the state of Andhra Pradesh (AP). Units of state relied heavily on coal supplied by SCCL. The case captures the various initiatives taken Sarma overcome the lack of trust between management and blue collar workers with low levels of literacy and income. It addresses the new communication strategy to connect with the workers. The case describes how many strikes plaguing SCCL has been limited, and order was restored to productivity increase. Under the leadership of Sarma, SCCL achieved a net profit of 894.1 million rupees for the fourth consecutive year in 2001. Sarma was a fixed term of five years, which ended in 2001. The task of the new leader was to build on the foundations laid by Sarma and SCCL accept performance to new heights. "Hide
by S. Ramnarayan, Neha Gupta Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: December 6, 2011. Prod. #: W11553-PDF-ENG
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