Interactive Session on Turnaround Management & Financing

Confederation of Indian Industry (CII) has organized an Interactive Session on Turnaround Management & Financing for MSMEs on 5 June 2009 at Pune.

Mr. Rajeev Karwal, Founder Director, Milagrow Business and Knowledge Solutions delivered the keynote address on “Turnaround Strategies: Do’s and Don’ts - Good and Bad”. In his address Mr. Karwal started by identifying where turnaround strategies are implemented and what circumstances leads a company to develop and implement such a strategy. He enlightened the audience by introducing them to the 7 steps of restructuring businesses, the good and bad of restructuring, imperatives to keep in mind while going ahead with a turnaround strategy among many other things.

The current economic scenario presents a most formidable challenge being faced by the global economy. The key demand drivers such as USA, Europe and Japan are already under recession. This has led to sharp contraction in export profitability and also drop in the prices of commodities which has severe implications for growing countries like India.

Current turbulence has led to sharp volatility in price of raw materials and currencies especially in the period September to December 2008. This has in turn led to inventory loss throughout the Supply Chain which has made business more vulnerable to further shocks

In the current scenario, it is critical that communication between policy making, regulators and businesses is clear and constructive so that policies are effectively designed. Also expertise required to operate in such an environment needs to be disseminated quickly and various businesses need to be sensitized to a different operating environment.

The process of bringing about a revival of a firm which is termed as Turnaround Management has 3 phases:

1) Diagnosis of the impending trouble
2) Choosing appropriate Turnaround Strategy
3) Implementation of change and its monitoring

Mr. Rajeev Karwal also introduced to the audience the Milagrow study on “Sickness and Rehabilitation of MSMEs in India” This report studies the extent to which government organizations that support MSMEs are achieving their key objectives in as efficient a manner as possible. As motivation for the project, there exists the underlying assumption that these organizations are in fact not doing all that they could do in the assistance of MSMEs.

Download Mr.Karwal's presentation on Turnaround Strategies - Do's & Don'ts