Scooters India Ltd. (SIL) was established in the year 1972, by the Government of India , as a public sector enterprise, by importing old plant and machinery from a defunct automobile company in Italy. The company incurred losses ever since its inception so much so that at one point of time (in 1989-90 it made a loss of Rs. 404 million on a sale of Rs. 103 million. It had accumulated losses to the tune of Rs. 2125 million. The worker unions were agitating and fought pitched battle among themselves, against the management and the government. The government almost makes up its mind to wind up the company and appoints a new chief executive, who pleads against the winding up and works for revival of the company. The company however, gets covered under BIFR in 1992, who also feels that it is a mortuary case only to be burried. Undeterred, the new Chief Executive collects the pieces and start building up the organisation again. After seven years of slogging the company earns a net profit for …
Author: Krishna, Kumar
Source: Indian Institute of Management Kozhikode
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