Top 5 Revival Stories

Top 5 Revival Stories

  • Reading time:4 mins read

By Tanya Jain

1. BSNL-MTNL REVIVAL PLAN–   A seven member group of ministers has been constituted to fast-track and oversee the implementation of the Rs 69,000 crore revival plan for state-owned telecom corporations Bharat Sanchar Nigam Ltd. and Mahanagar Telephone Nigam Ltd. The high-level group will expedite smooth implementation of recent decisions taken for the BSNL-MTNL revival plan, including crucial elements like allocation of 4G spectrum and asset monetisation. There are crucial elements like business viability, workforce, issue of bonds, asset monetisation and 4G spectrum allotment in the revival package. The Group of Ministers will expedite and oversee the plans. The revival package is aimed at making the combined entity profitable in two years.   

2.WORLD BANK REVIVAL PLAN–  According to the World Bank, India needs to maintain its reform impetus to reverse the current economic downturn. The paper notes that the government needs to continue to implement critical reforms in key areas such as health, labour, land, skills and finance to come out stronger from the impact of the coronavirus pandemic.The reforms should aim at enhancing productivity of the Indian economy and spur private investments and exports. There are few suggestions that were made in order to instill fiscal discipline.                                               

 •Reassess subsidies to leverage any scope for efficiency gains

 •Evaluate how much can be borrowed domestically and externally.

 •Generate non-tax revenues more  aggressively. 

 •Link the repayment of new borrowings to disinvestment receipts. 

Moving to a more strategic public-sector footprint- Recent efforts including consolidation of public sector banks and strengthening of corporate governance are encouraging steps towards a more strategic public sector footprint. Moving forward, gradually scaling back the statutory requirement for state banks to provide liquidity, as well as the priority-sector lending policy, will help reduce market distortions.

3. HOW WHIRLPOOL TURNED ITS FORTUNE–  Competition from new Asian rivals had pushed Whirlpool into the red zone. Whirlpool president Arvind Uppal joined when the company was incurring losses. The first thing he realised was the situation of the morale of its employees, that needed to be addressed. Get everyone on the same page and boost morale to create a winning team. The team needed to know that it was not wrong in its thinking, but the company had to pull together towards a common goal. They needed to operate almost like specialists, to offer a wide choice to consumers.

They continue to remain focused on home appliances and are a leading player in refrigerators, washing machines, microwaves and air conditioners and thus entered the water solution market and also offered high- end kitchen solutions, ultimately reviving the situation of falling demands.

4. HOW INDIA CEMENTS CAME BACK FROM DEBT–  In the mid-1990s, with a capacity of just 2.6 million tonnes, India cements risked becoming an also-ran. That set the company thinking and they decided to become a large regional player in the South. Between 1997 and 1998 they acquired Visaka Cements and Cement Corporation of India’s Yerraguntla unit (both in Andhra Pradesh) through competitive bidding.  In June 1998 they took over Raasi Cements (also in AP) through a hostile acquisition. Simultaneously, they also set up a new plant at Dalavoi, Tamil Nadu. In less than two years, their capacity had catapulted to nine million tonnes. The acquisitions cost them Rs 1,600 crore and were predominantly funded by debt.

5. DABUR’S REVIVAL PLAN–  If you compare sequentially, the industry growth rates are actually going down because of rural distress. There are few plans the company has come up with, One is open to acquisitions. They have got a war chest of around ₹3,000-odd crore. And, they have kept this for India only. So, anything which is a strategic fit for the company. They are doing due diligence on some companies. There are several interesting companies available. According to the company, what has happened is that because of GST compliance, a lot of these small companies are under tremendous pressure. Earlier, they used to evade GST and, therefore, they used to thrive. But now, thriving has become a survival issue because of compliance coming in and with all the e-way bills, etc., coming in they are under tremendous pressure. Because of the pressure, they are willing to let go. Thus Dabur is open to acquisitions in healthcare, personal care and food as categories.