Lanco Infratech Case Analysis

External Problems: Stalled Projects: Construction companies across the nation have been feeling the brunt of the turbulent economic environment and the fluctuating currency. In 2013, Lanco Infratech had to put development of two of its major Thermal power projects on hold, because of the above stated reasons. They had acquired all the required permissions and had the land to start working on it, but the economic situation led them to believe they won’t be able to achieve financial Closure of these for a long time. These further lead to Capital investment being stuck, without generating any revenue.
Lack of Transparency in acquiring Government Permits:
India ranks 183rd in Obtaining Construction Permits in a list of 189 countries, in the Doing Business Report of 2016, a rank up from its status in the same report published in 2015. A lot of Construction permits are denied without giving sufficient or any reason, thereby stalling projects with good scope both for the people and the Construction Companies. The rampant corruption is also a major problem, when it comes to the construction sector, where companies taking initiatives for Green Building may be denied permission if they refuse to bribe the respective officials. A realty development requires around 50-60
Human resource is the most important factor of production in any company. Vocational training is a training that underscores the importance of knowledge and skills of a particular job function. If the employees are well trained and are aware of their duties and responsibilities, they would be able to perform better and consequently the productivity will increase. Besides vocational training programme for executives and labour, Lanco needs to focus on management level leadership development. In the past Lanco has been in the news for treachery and frauds. Thus, it is very important to promote a holistic development