Mindset Challenges at Aluminum India Limited: Privatization of a State-Owned Enterprise

Anjula Gurtoo ()
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Anjula Gurtoo: Department of Management Studies, Indian Institute of Science, Bangalore – 560 012, India

Asian Case Research Journal (ACRJ), 2006, vol. 10, issue 02, 261-280

Abstract: The Central Government of India sold 49% equity and gave management control of Aluminum India Limited (AIL), an aluminum manufacturing state-owned enterprise (SOE), to the AlBright Group in 2002, as a move to attract capital investments for AIL and to make its operations financially viable. When Noorani, Chairperson of AlBright — a private company — took over AIL, she had to deal with a 30-year old manufacturing plant, an aged workforce, decreasing market share, and a 57-day employee strike against the sale of AIL shares to a private company. Together with a new management team, Noorani undertook some measures and was contemplating on others to transform AIL into a market-driven organization. She was facing high employee resistance. At this juncture Noorani was pondering on what to do next. She was concerned about the possibility of transforming AIL and proceeding with the expansion plans on schedule.

Date: 2006
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DOI: 10.1142/S0218927506000806

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