Khattar had come to Maruti six years earlier as Director (Marketing) after an eventful innings of 28 years with the IAS in which
he had handled a wide variety of assignments. He had headed a marketing assignment with the Tea Board. Earlier, he had turned around the UP Transport Corporation, where instead of retrenching the surplus staff, he added more vehicles. Before that he took the UP Cement Corporation to profits after 19 years in the red. As a young District Collector and Magistrate, he had worked in rural development and disaster relief work in Chamoli district for which, his recommendation for a Padma Shri was set aside, only in view of his young age.
It was this versatility, perhaps, that was to now stand him in good stead in 2000. Maruti workers who had been pampered with numerous sops, after the Bhaskarudu period, were reluctant to accept a productivity-linked bonus scheme to raise product quality and efficiency. The workers wanted a lot more but Maruti stood firm and production limped along with managers doing the work of workers on the shop floor. After 90 days, the workers’ unions relented and the workers were encouraged to see the benefits of prosperity through productivity. Maruti estimates that it had gained 50% increase in productivity within a year.
In 2003, with production stabilised & market in good shape, Maruti decided to embark on a huge public issue despite a depressed capital market. There were many skeptics about this big IPO and the investment banking biggies like Merrill Lynch & Morgan Stanley, and domestic institutions like Life Insurance Corporation were not impressed. But Khattar headed a team promoting the issue on exhausting road shows to the financial capitals of the world. The issue was to sell a big slice of the government’s equity to the public. Maruti’s name was held in such high standing that the response far exceeded Khattar’s most wishful thinking. Perhaps, not so coincidentally, this IPO also marked the turning point in Indian investor confidence.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
he had handled a wide variety of assignments. He had headed a marketing assignment with the Tea Board. Earlier, he had turned around the UP Transport Corporation, where instead of retrenching the surplus staff, he added more vehicles. Before that he took the UP Cement Corporation to profits after 19 years in the red. As a young District Collector and Magistrate, he had worked in rural development and disaster relief work in Chamoli district for which, his recommendation for a Padma Shri was set aside, only in view of his young age.It was this versatility, perhaps, that was to now stand him in good stead in 2000. Maruti workers who had been pampered with numerous sops, after the Bhaskarudu period, were reluctant to accept a productivity-linked bonus scheme to raise product quality and efficiency. The workers wanted a lot more but Maruti stood firm and production limped along with managers doing the work of workers on the shop floor. After 90 days, the workers’ unions relented and the workers were encouraged to see the benefits of prosperity through productivity. Maruti estimates that it had gained 50% increase in productivity within a year.
In 2003, with production stabilised & market in good shape, Maruti decided to embark on a huge public issue despite a depressed capital market. There were many skeptics about this big IPO and the investment banking biggies like Merrill Lynch & Morgan Stanley, and domestic institutions like Life Insurance Corporation were not impressed. But Khattar headed a team promoting the issue on exhausting road shows to the financial capitals of the world. The issue was to sell a big slice of the government’s equity to the public. Maruti’s name was held in such high standing that the response far exceeded Khattar’s most wishful thinking. Perhaps, not so coincidentally, this IPO also marked the turning point in Indian investor confidence.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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