The company's operations are being divided into strategic business units. Strategic units in the polyester, spun yarn and DTY businesses will be formed to cater to its existing operations.

The polyester unit will cover the polyester-staple fibre and partially-oriented yarn operations at the Butibori plant. The second unit will cover the business of spun yarn at Pithampur and Butibori as well as the DTY business at Butibori. The spun yarn and DTY unit will be headed by designate president SK Jain, while a special circular from Lohia says the name of a new president for the polyester unit will soon be announced.

Manufacturing vice-president CV Khandelwal will head the division.In addition to the strategic units, a projects division-responsible for conceptualising and implementation of growth in polyester andpetrochemicals-and a finance division responsible for earning profits through management of treasury and foreign exchange transactions will also be considered "strategic activities", according to the circular.

Each business unit and stratetic activity will be headed by presidents reporting to the managing director. This six-member group will be the apex level of business responsibility accountable for profits, growth, customer satisfaction, employee motivation and shareholder value enhancement.

Corporate directors will support the core group and each will be responsible for "specialist support and expertise" in the following areas: Economic forecasting, research, business systems, information technology, human resources, talent management, management audit, business development and legal affairs. The wholesale changes will seek to transform the face of a company struggling in a slow market dominated by market leader Reliance Industries and plagued by low prices quoted by south-east Asian manufacturers,who have been rendered more competitive by their crashing currencies.

The details of the changes have been outlined in a circular issued to the employees by Lohia on September 14.

The idea is to go in for strategic business units (SBUs), split finance and commercial functions into different units, and to create a special task force for vital functions-all of which were lacking till date.

The management committee will be entrusted with the responsibility of performance review, strategic planning and annual budget finalisation.The committee will consist of the managing director, five presidents as well as the corporate directors of human resources, economic forecasting, research, business systems, information technology, management audit and business development.

VK Singhal has been appointed corporate director, business systems and information technology.

Plan of Action