CASE STUDY: Leveraging People Processes for Organisational Excellence - I

103 acres allotted by river Periyar (one of the 44 river streams flowing into sea) in 1964 in the Chemical Industrial Estate of Kerala. With Canadian collaboration, the first zinc smelter in India came up in 1966, Cominco Binani Zinc Limited (COnsolidated MINing COmpany, Canada). First 25 years witnessed 'worst' period than good because it was beset with strikes , lock outs ad lay offs totalling to 58 months in the 25-year life (1966-1991).

1991, divested foreign collaboration; became Indian company, Binani Zinc Limited.

This is the first Company practising globalisation even during pre-LPG era: all components from raw materials and finished product are based on LME price of zinc metal traded every day @ GMT. Only inputs like labour, power, water, logistics (port, railways and road) were Indian components - operating in a global non-ferrous business space. Business benchmarks were global. 18 business metrics inter-play on a daily basis. Government regulation: central excise, customs, ad valorem duty etc. are daily/regular usages.

Mid-1980s-1990s: Company invested heavily to the extent of Rs. 85-90 crores and built state-of-the-art-technology zinc smelter plants (Roaster Plant: Lurgy Germany, Leaching Plant: Brussels-based Company, Electrolytic Plant: UK collaboration and Melting Plant: Ajax, UK), and 5.5 Captive Power Plant (Nigatta, japan and Wadsila Diesel), new water Treatment Plant, Sewage Treatment Plant, Waste Heat Recovery Boiler (5 MW) etc., 2 feeders (one stand-by) direct power lines 220 KV from Kalamassery Sub-station etc.

Mid 1980s-90s: process of Professionalisation: Manning all Department Heads, except Production, hand-picked PSU professionals with a private sector mindsets for efficiency. PPP introduced me to NS (N Srinivasan), the President and other Management Committee (MC) members, then the Department Heads in the Daily Operations Meeting.

Canadian Company-Indian Company-Modernisation of Plants-Professionalisation [IR Model & Collective Bargaining Model, Re-positioning Personnel to HRD, HRD &EOHS: CEO's Agenda,-OD-Culture]-Corporatisation >>> Corporatisation

From 1966 to 1991 (25 years), witnessed the longest strike (11 months) by any Kerala company, still Managers operated the Plants in 3-shift 24*7*365 Plants; zinc ingots produced during the 11 months were were stacked and kept on the roads because final product area had no space!

Paul P Palith (PPP), retired Personnel Manager, Aluminium Industries Limited (ALIND), Kundara, Kollam district, Kerala, was inducted to lead Personnel. Rest is history.

Very few knows what PPP has done in Personnel in Binani Zinc, what and how he went about transforming to HRD, and how HRD steered and navigated through the age-old 25-year 'concreted' conventional Management and how these challenges were addressed, how he 'poached' people, had far-sightedness and how/what are the multiplier-effects of Organisational and HR Initiatives and Interventions that followed.

This series deals with continued outcomes HR activities by which Management re-gained confidence to go for the only one highest investment of Rs. 1000 crores; signed an MoU with Government of Kerala in 2003!

It was along journey to go from 1964/1966 through 1991 (strike-stricken days) and the other 25 years of no-strikes, no-lockouts and no-lay-offs, and Management venturing to invest in Kerala.....

Clarity of direction, which includes describing what we are going after as well as describing what we will not be going after, is exceedingly important at the late stage of strategic transformation

= Andrew S Grove

"Only the Paranoids Survive"