The management consultancy Dr. Dr., which specializes in India Wamser + Batra GmbH was commissioned by a European company in India to overcome an acute crisis situation and fundamentally restructure its business activities in India.
The suffering is great. The European company had been planning for several years to realign its business activities in India - along with an urgently needed modernization of existing production units.
Due to ongoing disputes with the Indian workforce and unrealistic demands from local unions, the required reorganization could not be implemented. After years of negotiations, employers and employees did not find any compromises, even though the Indian factories were now producing technologically completely outdated products that no longer find buyers on the world market.
In this critical situation, the company was forced to involve and commission external experts WB turnaround management ®to identify, negotiate and implement solutions on site.
Location closure and turnaround strategy
“As harsh as it may sound”, said Dr. Johannes Wamser, Managing Director of WB, “But after several rounds of negotiations, we realized that an amicable solution was de facto no longer possible. The point of no return had been passed.”
And so the decision was made to close the existing production units. “Ultimately, of course, with the actual goal of repositioning the company in India free of “legacy burdens” and making it fit for the future.”, adds Werner Heesen, Head of Human Resources & Organization at WB.
After the decision was made by the German parent company, WB provided several interim managers - all specialists with several years of experience in India - who carried out the site closures quickly and in full compliance with Indian laws. In this process, it was even possible to agree social plans with the unions and achieve a sustainable de-escalation of the entire situation.
“From now on it’s about working with everyone involved on the future of the company in India. Long-term strategies are currently being discussed and we are implementing initial measures on site. Even though there have been very drastic measures at the moment, this has not had a negative impact on the company's willingness to continue to be involved in the Indian market."said Heesen, who took over project management at WB.
Crisis Manager for India
WB turnaround management ® – The specialist department of Dr. Wamser + Batra GmbH, which specializes in restructuring and optimizing existing business units.
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