Scooters India Limited Case

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 against 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 amongst themselves, against the management, and the government. The government almost made up its mind to wind up the company and appointed a new Chief Executive, Dr Sahay, who pleaded against winding up and worked for the revival of the company. In 1992, the company got covered under BIFR which reinforced the government's stand that the company cannot survive. Undeterred, Dr Sahay took up the challenge of turning around the company. After seven years of slogging, the company earned a net profit for the first time, in its silver jubilee year, breaking many myths in the process