**Title:** CG Power’s Remarkable Turnaround Led by Srinivasan
**Meta Description:** Discover how Srinivasan transformed CG Power from a non-performing asset to a thriving company through strategic leadership and innovative projects.
**URL Slug:** cg-power-turnaround-srinivasan
**Headline:** How Srinivasan Revitalized CG Power Amidst Financial Turmoil
In a remarkable turnaround, Srinivasan, a seasoned finance leader from the Murugappa Group, was chosen to spearhead the revival of CG Power during the challenging early days of the pandemic. Initially hesitant, he reflected on the daunting challenges posed by the company’s liabilities, ongoing litigation, and operational paralysis. At that time, CG Power had been classified as a non-performing asset, with debts amounting to ₹2,600 crore to secured creditors and ₹750 crore to unsecured lenders, alongside significant unpaid dues to employees and tax authorities. The situation was further complicated by failed overseas guarantees, leading to additional claims against the company.
What ultimately guided Srinivasan through this crisis was his disciplined approach and methodical mindset. An early riser, he began his day by tackling emails at 3:30 am and established what he termed “symbolic war rooms”—thematic WhatsApp groups that monitored various aspects of the business. By actively participating in these groups, he absorbed critical information that became the foundation for the company’s revival.
Srinivasan’s first priority was financial triage. Drawing on the credibility he had built over decades with lenders, he successfully secured fresh equity and long-term loans from institutions like SBI. His familiarity with the banking sector proved invaluable, enabling him to obtain funding even when CG Power’s prospects appeared bleak. He negotiated settlements with secured creditors at 43% of their dues, ensured full payments to vendors and employees, and restored the company’s working capital cycle. Remarkably, within months, CG Power transitioned from a non-performing asset to a standard asset, and within 15 months, its balance sheet was completely restructured.
However, the turnaround was not solely a financial achievement. Srinivasan’s leadership style, characterized by humility and a non-confrontational approach, played a crucial role. Recognizing CG Power’s rich history and unique culture, he opted not to impose the Murugappa practices immediately. Instead, he focused on building trust during the first six months. He visited plants during the peak of COVID-19, engaging with workers, unions, and vendors while promising transparency, prompt payments, and a departure from past chaos. This approach fostered a sense of unity within the organization.
Operationally, Srinivasan launched several initiatives, including Project Mudra, Project Lean, and Project Regain. Project Mudra revamped procurement practices, mitigating the risk premiums vendors had introduced due to previous payment delays. Project Lean involved collaboration with Japanese consultants to enhance productivity and workflow, while Project Regain aimed to reclaim lost customers and market share. Collectively, these initiatives improved both margins and employee morale, setting the stage for consistent quarterly growth.
In conclusion, Srinivasan’s strategic leadership and innovative projects were instrumental in CG Power’s remarkable recovery. His ability to navigate financial challenges while fostering a collaborative culture has positioned the company for sustained success in the future.
**FAQ:**
**What were the key strategies used by Srinivasan to turn around CG Power?**
Srinivasan focused on financial restructuring, building trust within the organization, and launching targeted operational projects to improve procurement, productivity, and customer relations.
