Turnaround of an Indian Construction Company in Singapore
A major Indian construction company was facing major cash problems in its subsidiary in Singapore, due to mismanagement.
Customer relationships had completely broken down after a series of broken promises.
Projects were not moving forward.
The staff were completely demoralized and the organization was hit by very high attrition.
The subsidiary was in financial distress, which was this in turn threatening the stability of the parent company in India.
To turn around the subsidiary, we deployed a highly reputed interim CEO with longstanding relationships with key customers.
The interim CEO took the following steps to turn around the company:
Initiated judicial management for protection against lawsuits. As a result, a judicial manager was appointed to scrutinize the issuance of cheques.
Took charge of pending projects and personally supervised their completion.
Increased salaries to retain staff.
At the end of the six month assignment, the interim CEO had accomplished the following:
Essentially completed all pending jobs, except one that had to be re‐tendered.
Collected money from buyers and avoided liquidation, without requiring injection of funds from parent organization.
At the end of the six month assignment, the Client asked the interim CEO to stay on. However, the interim CEO declined due to other commitments.