HINDUSTAN CABLES LIMITED

Hindustan Cables Limited a government undertaking organization was shut down in 2005
due to the insufficiency of raw materials for the production of cables.

It was one of the healthy organizations with profits in the turnover. Its decline started
when it transferred whatever profits it had to the sick unit at west Bengal.

The main drawback of this unit is that the govt. undertaking unit had to loose some of the
orders for quality cables at cheaper rates which it did not agreed to. The government’s
mistake was to give license to the new companies which manufacture the same cable in the
nearby area being known about the govt. unit’s presence in the same business. So the
private players came into existence near and around cherlapalli and the orders were
grabbed by them with cheaper rates and compromised quality.

The fact that has to be focused here is that the employees who were there in this unit were
surplus and the profits which they incurred were thoughtlessly shared among them from
time to time in terms of benefits, bonuses etc. and did not think over about the raw
materials acquiring and hence leading to the absence of working capital for its operations.

So the management had offered VRS to the employees of this unit where most of them were
benefitted with the housing facility and sufficient payment with which they were settled.

One more reason was that when one department like production had extra work
sometimes and took their OT’s then even the whole company was made eligible to those
OTs unnecessarily. The operations of the company had to stop due to the insufficient funds
allotted to this unit in spite of their margins attained and irregular sharing of the payments
among the employees irrespective of their requirements.

Now the whole land is under private hands and the machinery which is in good condition
also is left out without any usage.

Because of the company becoming sick, the school, hospital and the bank which was run by
this management had to suffer and finally came to their closure. The houses which were
meant as staff quarters are now occupied by some private people and few of them are still
under the past employees who are waiting for their payments to be cleared.