Research Scholar,
Industrial sickness is one of the most complex problems of the Indian economy. Albeit myriad measures taken by the Government, the problem persists acutely. Heavy Engineering Corporation limited (HEC Ltd) is termed as ‘mother of industries’ as it makes machines that built the nation in independent India. HEC had been instrumental in setting up new steel plants, thus playing a crucial role in modernization of India. In its 47 years of existence, company made profit only in the following years: 1975–76, 1976–77 and 1988–89. The Board for Industrial and Financial Reconstruction, Government of India recommended its closure in 2004. Based on the recommendation by Board for Reconstruction of Public Sector Enterprises (BRPSE) on 07.10.2005, Government of India approved the revival package for the company in Dec’2005 and company started incurring profits since financial year 2006–2007 to till now.
This paper will focus on factors responsible for making the company sick, SWOT analysis, strategic decisions taken for turnaround of the company and its financial performance.
