Ad Here  
January
February
March
April
May
June
 
 
He saved millions from starvation... Excel Generators provide the vital back-up Paytm karo... Bihar – Nitish Kumar adopts the Lalu model The sea- saw battle continues... Sri Lanka votes for change The few handicaps... When small is no larger beautiful.. Delhi Chalo... Rahman at CIC No mega rail project for Tamil Nadu Should we change the official year? to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Mu Sigma – is no more Odisha: spectacular win by Naveen Patnaik Increasing non co-operation of state leaders TN – agglomerate land holdings without alienating ownership Preserving for the future Welcome changes that testify to Jayalalithaa’s return to health The Swadeshi Trump Waning interest in public discussions… Gas is the way forward A Grand Finale for SN’s MS centenary at the US… When Ratan Tata visited SRM The nuclear option Dr C Rangarajan returns to Chennai Revving up the manufacturing sector Airlines in India: cost and space L&T: focus on infrastructure and more infrastructure… A more liberated TN… Haul over the coal IAS invades NDDB... The rise and fall of Annamalai University Marketing expert Balagopal is no more A proud Madrasi MHC should not return to its old indisciplined ways Multi-faceted Venkat Godspeed, Chief Minister JJ Maximising the micro pricing … Small units prefers to remain small... No engine for this car The Gulf aviation boom Cutting the nose to spite the face SoA @ 80 The ‘Ayyo-yes’ is no more Secularism and anti-Hinduism Valli, they are more marginalised Insurance companies bleeding, yet no decision on increasing FDI limit! Like Hinduism: many paths to reach God... Gay abandon in pricing WTO Meet: resolved to meet again PC’s preference for professionals Fortune for Indian Airlines CIPET hqrs to stay at Guindy – for the present? Tribute TIAM turns a full cycle When nations steal growth from one another… TELANGANA at last…BUT A professional at the helm of IRDA... Boy, can you beat these? There was flood of milk. Reason: no milk commissioner! B H Kothari - a tribute EEC at the National Media Centre The why of tax incentives CSR and CMI: promise of another Srinivasan Ramanujan... Making ‘my Amaravati’... Muffled voices for merit… Engineering seats go abegging Rs.1600 crore paper board plant of TNPL Return to king coal for urea... An enemy’s enemy is a friend For whom the bell tolls? Adharma of opposition politics When TN politicians can emulate Kerala's …and of a popular trade leader Align crops to agro climate endowments… More tributes to GR Streamlining mandatory third party cover Solar thermal shines… Delhi returns to BJP Delhi is distant Not just in-laws (and outlaws); they’ve renowned academics at the helm! Computation of GDP – conundrums continue Towards speedy justice Tax agriculture Poor quality of university VCs Eternal support for capitalisation of PS banks Recognition to role of NBFCs.... GNS - 100: our first subscriber Cement prices continue to rise… S V Raju – a ‘good’ true liberal Noble nonagenarians... This scant respect for Law Why this malaise in medical education? Tough task taking states together Tihar, Puzhal not different from Parappana Agrahara Strengthen the base... The brown list of Venkitaramanan Poor representation for Kerala and TN in Cabinet The rise and rise of KCP Robber barons everywhere Alexa – Talking Wikipedia Remembering Indira Sivasailam... Welcome focus on core competence Protest masters... Music happens Liberal imports idling indigenous capacities Make standards certification mandatory... Fuel for thought Plummeting profits of PSBs The power-full Hindujas Intellectual of rare qualities F C Kohli - his concerns all embracing The balancing act Focus on quality of power - its only around 170-180V Parliament in paralysis... A think tank for Chennai The Ports’ Pasha expands into Tamil Nadu S Ramanathan – a versatile musician, musicologist Russi Mody – a tribute Another Indian music maestro at the UN Colour-Chem’s colourful KRVS Kulandai was a giant L&T- the specialty of special purpose vehicles A glass full of corruption TGS- The king storyteller Come elections, come advertisements... R Sridhar steps down as CEO of Shriram Capital Limit foreign borrowings to hi-tech, export potential projects... The ‘Jayanthi Tax.’ Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Demise of a media baron... Don’t seem to feel the pulse… Cleaning Ganga – relocate tanneries and install electric crematoria PPP mode for upgrading Corporation Hospitals Moily’s bold thrust More Shakti to resource mobilisation... Shale gas and its shallow future Fall in crude prices help in oil sector reform Medical costs hit the roof... London, London Narayan Pharma – overdose of copying A Grand Finale for SN’s MS centenary at the US… Wise Presidents West Bengal: mindless malignancy Tatas moving out of urea production... Building loyalty through the stomach How Air-India loses customs... Vibrant Gujarat Funding the un-funded A welcome initiative by the judiciary Adapt Vajpayee dinner diplomacy Silver Years of Madras Musings Kinetic Karnataka A C Muthiah – his munificent bequeaths to science Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Solar, solar everywhere … Quality silica from Neyveli When the President was rendered homeless… Of course, Gujarat is vibrant Where a state respects its litterateurs… Where is Rajaji? Contrarian cousins Naidu’s return augurs well for Seemandhra Permanent secretariat for TN GIM Scientists urged to take up farmer-oriented research Infrastructure funding – lessons learnt Welcome GST Readers' Mail A rich pool of talent not utilised…. Land reclamation from sea appears cheaper! For whom the MIDS bell tolls? Online not in line with brick and mortar businesses... Nuclear power at the nucleus Fortune 500 review A friendly business group He continues the focus on social amelioration Air Asia India will set new benchmarks for budget travel IPL - no surprise this scam Auto components surge… Shaming of Tamils by Tamil farmers at Delhi EVM is tamper-proof Convulsions in The Hindu Reliance’s TV – 18 ready to launch Tamil News Channel Padma Bhushan for A Ramakrishna Measuring roof tops in terms of KW/MW Mersal magnified Sweeter prospects for sugar Which side are you, Montek? Modi and the lady Five star activism stalls development activity Tribute – M V Murugappan Delhi is distant… Things happen by accident and not by design... Modi storms Silicon Valley Naidu will soon build a new Hyderabad Wanted: a second airport for Chennai Banning booze... Roaring Ro-Ro facility Tribute – Manikam Ramaswami ONGC at KG Basin No Maha Koottani in TN... TN-leverage strength of BHEL, NLC... TN accounts for the largest recruits by the IT sector Tatas moving out of urea production... Lalu’s envy, India’s pride The Jan Dhan bonanza Kudos to NDTV... Shipping woes of Chennai companies Quality education through the PPP mode An inexplicable neglect IPL type auction for VCs? An informal presentation - analytical, forward locking... Sweet news for TN sugar mills Editor's Says Build close rapport with business leaders The star of Spencers is no more Lesson from Chandrababu Naidu Put expensive assets created to use... Road development slows down A yen for wastage… CRS, a jewel among managers, is no more. Why land prices zoom in TN? Diamond jubilee of Egmore Samskrt School Polls and promises When online building permits work…. Breaththrough in malaria control Inflation: are we emulating Argentina and Brazil? New IT products of Ramco in the pipeline… Bihar elections - the Rajaji formula worked GM Technology at last! Tribute – UCAL Selvan… More Shakthi to Das’ elbow Welcome thrust on trade in Modi’s foreign visits... Whistle-Stop Tour of Raghuram Rajan China invests in India CII projects higher growth… Discoms deserve better… Shanti and Sadhana through Music Telangana in top gear… More heat than light Editor's Notes All eyes on Sankara Nethralaya Revive development banks...
 
Welcome focus on core competence

The logic of sticking to knitting seems to be impacting large public sector corporations. When such a project was set up in a green field site far removed from major cities, there was the need to provide a vast range of facilities and social infrastructure. For example, when the Rourkela Steel Plant was set up in the 1950s in Odisha, the area lacked basic amenities like housing, roads, power, schools, hospitals, markets, etc. Substantial portion of the initial capital had to be spent on creating these facilities. Over the years the administration had to cope with managing a vast range of activities that had been taking its attention away from the core activity of producing steel. It plunged several public sector corporations into losses. It also resulted in bloating the workforce to levels that became unmanageable.

Tata Steel at one time had a workforce of over 70,000. A large portion of these were engaged in activities that had little to do with the production of steel. eg: managing the township, providing water supply, electricity, maintenance of roads, running schools, hospitals, sports, museum, etc. A bold decision was taken to relieve the company of most of these non-core activities. Aided by the boom in the steel sector post-2000, the company effectively hived off many of these activities to separate institutions and offered liberal VRS packages. In quick time it reduced total workforce by half. Several other corporations followed suit and succeeded in improving productivity per employee and focused on their core activities.

This has become necessary in the context of stiff competition from across the globe. There is pressure to improve incremental capital output ratio and ensure higher productivity per unit of capital employed. This has been achieved by a few sectors like the automobile and auto component industry by taking recourse to a higher degree of automation, vendor development and improving supply chain management.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com