The organisation came into existence somewhere in 1996 in the industrial estate of Raipur (CG). It was a kind of family owned industry those days. The investor and entrepreneur is a local family and with engineering background. The investor did have a passion to scale up the operations. With this idea they appointed known people but with poor technical understanding of the business. Most of them were either family relations or taken from near and dear families. The result for years was loyalty to particular people which went into royalty after few years because investors only honoured the loyalty much more than performance and business orientation of the existing team of operation.
Soon after govt. shifted the industry to main industrial estate leaving behind their small property.
The plant started with two small kilns of sponge iron and a small power plant. Few years later a ferro Alloys plant was set up and a steel melting plant came up. Wire rod mill was installed but operations wasn’t initiated because of few people notions that market was not good.
It so happened that family members started overseeing the plant operations as per their wish and ideas with out having a better technical background. Each plant had its own plan with out looking into the integration of business. The output of one plant is input to another plant with power as back bone. The raw material planning was also uncalculated with royal commercial and purchase heads. Needless to mention that entire operation was totally uncoordinated and unaware to the investors.
In oct 2009, the Investors felt that after 12 years of operations , The profits and the professionalism did not grow. Their feeling was..All family members were siting at Board level with out much to do with daily operations understanding. There was no one person answerable to issues of operations
The decision was taken and an outsider HEAD was brought on board who came from a thorough breed professional large company with a challenge to turn around the operations. His coming on board, wasn’t welcomed by most of the older people.
This story is of the following theme
- Organization restructuring as first priority
- Asset optimization
- Business planning
- From Stagnancy to moving up
- Moving from Royalty to professionalism
- Sorting out unprofessional.
Read on in short..
The Head ( President later re-designated as COO) joined in OCT 2009 in Raipur to turn around the business of company as integrated business. The following was done in total four years
- Organization was correlated w r to reporting directs. All plant heads were to report to COO only.
- A business planning team of two people was created of which a COST ACOUNTANT was a part. There was a guidance from COO regarding COP of each plant .
- A formal business plant was firmed up based on power plant operations.
- A standby turbo-generator was restarted with the govt permission to scale up the total business operations.
- A standby Ferro alloys furnace was started with a restructure of plant manpower. This helped increasing the turn over.
- Power sales was made limited, instead the power consumption was scaled in steel and ferro plants.
- Standing un-commissioned Wire rod mill was put into operations as a Brand product.
- CPP insurance policy was revised as a top most priority because after a disastrous fire in 2005 , company lost operations for almost one year. The persons who were responsible for power operations but didn’t ascertained the cause were taken out from CPP.
- Safe operations procedures were made part of business plan. Fatality and limb loss were penalty to plant heads.
- Later in 2011 the organization was DE-DESIGNATED. Whicch essentially means that all plant heads were re-profiled for a better business. The people who already read their maximum positions were engaged to teach and train. They were given better money than just changing their designations.
- The turn over almost tripled from 2008 figures to 2013 figures.
- Business plans would have an HR plan of recruitments/ promotions/compensations/ trainings to strengthen Forthcoming business. Also HR had leisure plans too.
- The company could be seen as a CHOSEN PLACE TO WORK.
- COO as agreed with investors left the organization in four years and four months after completing all his targets.
Sharad k goel
The than COO