A Turnaround Specialist on the Job: The Case of MPCON

Abstract

MPCON is a professionally managed technical consultancy organization promoted by Industrial Finance Corporation of India (IFCI) and several other apex financial institutions, banks and state government corporations. Established in 1979 as a premier consultancy firm in central India, it has been providing quality consulting services across the country. However, over the years, the profits of the company eroded and the company was on the verge of bankruptcy. The cash flows were also not enough to pay wages to the employees regularly. This was a hindrance even for quick project execution. There was no system of accounting and booking of income/expenditure. Surprisingly, the firm’s staff was in a zone of comfort amidst the bankruptcy and stagnation because this is the way the company had been running for the past many years and somehow they got their salary, which seemed enough for them. There were huge debts which had accumulated. Programme implementation was hugely delayed, yet income had been booked for them even without some of them having started. The scene was quite bleak when Surajit Roy took over the reins of MPCON in 2012 as Managing Director. But a clean-up specialist that he is, Roy turned the fortunes of this IFCI subsidiary. In less than two years, from a turnover of ₹ 7.22 crores in 2010–2011 to ₹ 23.22 crores in 2013–2014, the company suddenly saw a dramatic turnaround. So, how did this makeover happen? Was it his Midas touch? This case traces the tough journey of Roy and the company’s transformation under his brilliant leadership.