Voltas Ltd.: From Turnaround to the 'Big Bang'
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The restructuring process began with the formation of a core management team . Each business of the company was first analyzed to determine whether it was viable. For this analysis, Voltas evaluated the business on market size, growth potential, and strength of the competition. Then, it assessed whether the company had the necessary competence to compete successfully against the competition on critical success factors in the particular business. When a business did not fare well in the evaluation, it was identified to be sold.
Identifying Avenues For Growth
The turnaround efforts of the company took three years to bear fruit. From a loss of Rs. 119 million in 1998-99, Voltas recorded an operating profit of Rs. 69 million in 2000. The company offered a dividend of 12 per cent in 2000. Though Voltas' turnaround efforts had begun to show results, it still had to address the issue of low operating margins, which were at less than five per cent. In 2001, there was another change in management with Ashok Soni (Soni) taking over as the managing director of the company...
The Electro-Mechanical Business
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