Singareni Collieries: From Gloom to Glory

The case narrates how A.P.V.N. Sarma, chairman and managing director of Singareni Collieries Company (SCCL) since 1997, realized the need for change to rescue the company from impending bankruptcy. SCCL, a supplier of coal to the power and energy sectors, had been declared bankrupt by the Board for Industrial and Financial Reconstruction twice, in 1992 and 1996, and had accumulated losses of 12.19 billion rupees. As it provided direct and indirect employment to people residing in the region around SCCL, the health of the organization was critical not only to the massive workforce, but also to the state of Andhra Pradesh. The power generation units of the state relied significantly on the coal supplied by SCCL. <br><br>The case captures various initiatives undertaken by Sarma to bridge the trust deficit between management and blue-collar 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 million rupees for the fourth consecutive year in 2001. Sarma had a fixed tenure of five years, ending in 2001. The task for the new leader was to build on the foundations laid by Sarma and take SCCL to new heights.

The case is suitable for a course in organizational behaviour, change management/organizational development, or employee relations. As the case deals with the theme of strengthening communication and thereby enhancing performance, it will be useful in undergraduate and graduate programs in management and executive education. The case can serve the following learning objectives:<ul><li>Stimulate considerations on developing an effective change communication plan. Sophisticated modern communication strategies (social networking, SMS, blogs, intranet, etc.) have limited utility in reaching out to workers with low literacy levels.</li><li>Encourage discussion on ways to overcome trust deficits between management and labour, given a complete absence of communication between the two groups.</li><li>Help participants understand different challenges of change management and ways to meet them.</li></ul>

• Communication
• Change Management
• Employee Relations
• Trust
• Coal
• India
• Ivey/ISB