A Case Analysis of the Turnaround of a Mangalore Fertilisers Pvt Ltd
Public Sector Reforms in Karnataka – A Case Study of the Turnaround of Mangalore Chemicals and Fertilizers through Strategic Partnership
Uma H. S.1, Dr. Venkatesh B. S. 2
1- Assistant Professor, 2-Associate Professor, 1-Vidhya Vardhaka Sangha First Grade College, Bangalore, 2- Maharani’s college for Arts, Commerce and Management, Bangalore
Abstract
The article deals with the performance appraisal of Mangalore Chemicals and Fertilizers which was the very first state public sector unit in Karnataka to be privatized and its renewal through Strategic Alliance partnership by inducting the UB Group on its Board. The GOK should learn from its previous experiences that it is pertinent to take timely decisions and develop suitable modalities for disinvestment rather than let the SPSUs to be shut down. This study based on Altmans’ Z score analysis shows clearly that privatization has not only helped in the turnaround of the company but also has improved the operational efficiency. Keywords: Public Sector Reforms, Privatization, Strategic Partnership, Z Score Analysis, Performance appraisal.
1. INTRODUCTION
Karnataka state has been a pioneer in the establishment of SPSEs. The erstwhile Mysore state launched various industrial ventures as Government undertakings to primarily exploit the available resources of raw materials and power in certain regions as well as to generate gainful employment opportunities. However in the recent years these SPSEs have become sick with the passage of time. The purpose for which some of the PSEs were started have lost its significance. The introduction of Economic Reforms in 1991 and the policies of privatization, globalization and liberalization sweeping the economy thereof necessitated the state Govt. to reconsider the justification of investments in the public sector. Added to this the increasing compulsions to spend on social sector induced a process of appraisal of PSEs on a case to case basis. After that, specific solutions like
Uma H. S.1, Dr. Venkatesh B. S. 2
1- Assistant Professor, 2-Associate Professor, 1-Vidhya Vardhaka Sangha First Grade College, Bangalore, 2- Maharani’s college for Arts, Commerce and Management, Bangalore
Abstract
The article deals with the performance appraisal of Mangalore Chemicals and Fertilizers which was the very first state public sector unit in Karnataka to be privatized and its renewal through Strategic Alliance partnership by inducting the UB Group on its Board. The GOK should learn from its previous experiences that it is pertinent to take timely decisions and develop suitable modalities for disinvestment rather than let the SPSUs to be shut down. This study based on Altmans’ Z score analysis shows clearly that privatization has not only helped in the turnaround of the company but also has improved the operational efficiency. Keywords: Public Sector Reforms, Privatization, Strategic Partnership, Z Score Analysis, Performance appraisal.
1. INTRODUCTION
Karnataka state has been a pioneer in the establishment of SPSEs. The erstwhile Mysore state launched various industrial ventures as Government undertakings to primarily exploit the available resources of raw materials and power in certain regions as well as to generate gainful employment opportunities. However in the recent years these SPSEs have become sick with the passage of time. The purpose for which some of the PSEs were started have lost its significance. The introduction of Economic Reforms in 1991 and the policies of privatization, globalization and liberalization sweeping the economy thereof necessitated the state Govt. to reconsider the justification of investments in the public sector. Added to this the increasing compulsions to spend on social sector induced a process of appraisal of PSEs on a case to case basis. After that, specific solutions like
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