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CEL was a loss-making Public Sector Undertaking (PSU) with many problems of discipline, operational inefficiencies, aggressive unions, skill gaps and high employee cost. The past restructuring of the company has not led to performance improvement. At the time, CEL had already eroded its net worth by nearly 90% and was merely INR 66 Million as against a paid-up capital of INR 558 Million. A glance at its balance sheet showed a large number of qualifications reflecting the health of systems in the company. CEL was established in the year 1974 as a Central Public Sector Enterprise, under the Ministry of Science & Technology, with an objective to commercialise technologies developed by National Laboratories and Research & Development Institutions in the country. In subsequent years, it had taken up the manufacturing of a wide range of products in collaboration with various labs & institutions. CEL initially started off with manufacturing of Ferrites as its primary business. Soon afterwards, it started its two key business verticals, Solar Photovoltaics (PV) and Railway Signalling systems. CEL is credited with pioneering the growth of Solar PV in India and holds the distinction of manufacturing India's First Solar Cell in 1977 and India's First Solar Panel in 1978. Later in 1991-92, CEL supplied and installed India's first Solar Power Plants (two 100 KW power plants in Aligarh and Ghosi Districts). These plants started operations in 1993. CEL had entered into the field of Solar PV in an era when the technology was largely limited to the domain of space research and there were only a handful of organisations in the field, even globally. CEL was the fourth largest manufacturer of solar modules in the world in late 1980s. CEL has played a pioneering role in a number of other areas as well, including development of Piezo elements for various applications-Ferrite based Phase Control Modules for Radar Arrays, Cadmium Zinc Telluride Substrates for night vision devices, etc.

Case Supplement for Case A00392

Urban Health was emerging new priority in the healthcare sector in India owing to unprecedented migration of people to urban areas and the rapid growth of urban population increasing the vulnerability of urban poor, and lack of infrastructure for primary care. New health challenges of non-communicable diseases, vector-borne disease, malnutrition and unhygienic conditions in water-borne diseases in slum areas made it essential for governments to ensure preventive, promotive, curative and rehabilitative services in urban slums. Yet, densely populated slums left no space to create health facilities. To address the challenge, Government of Punjab had set up Health Kiosks (HKs). HKs ensured limited medical services to slum dwellers and the poor population at their doorstep.

The case deals with the hiring of a CEO for a newly established business by an existing group. The Chairman of the Group was of the view that the Group should hire stars from various multinational companies and raise its professional level, even if it required changing the culture of the Group. The case discusses the business plan and risk of business and an approach of linking the incentive system with the cash flow requirements and risks of the business.