Hindustan Cables

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Hindustan Cables Limited
Founded 1952
Headquarters Rupnarayanpur, Asansol, India
Number of employees
2818
Website hindcables.gov.in

Hindustan Cables Limited (HCL) is a government-owned company that makes telecom cables in India. It is under the Ministry of Heavy Industries and Public Enterprises.[1]

Foundation and growth[edit]

Hindustan Cables was founded at Rupnarayanpur in Asansol, West Bengal in 1952. Present headquarters is Kolkata. The objective was to make India self-reliant in manufacturing communications cables. The company has grown to make a broader line of products in locations in Hyderabad (Andhra Pradesh), Naini, Allahabad (Uttar Pradesh) as well as the original plant in Rupnarayanpur. In 1984 HCL acquired Machine Tool Works in Narendrapur, Calcutta from Cycle Corporation of India. Products include jelly-filled and fibre-optic cables, telephone and computer cords.[1]

Decline[edit]

HCL was profitable until 1994, but began incurring losses in 1995.[2] The company was referred to the Board for Industrial and Financial Reconstruction, which was unable to revive it.[3] At one time the company had over 7,000 workers, but by August 2006 there were less than half that number and in 2003 Bharat Sanchar Nigam Limited (BSNL), the state-owned telecom provider, stopped placing orders. Tata Consultancy Services was brought in to review the situation and recommended investment to diversify into new product lines. On 17 August 2006 there was a debate in Lok Sabha on revival of HCL, whose employees were not being paid their salaries.[2]

Disposition[edit]

In August 2011 it was reported that HCL had offered almost 973 acres (394 ha) near Asansol in the Bengal coal belt to the National Thermal Power Corporation for a proposed new power plant. HCL owned a jelly-filled cable factory at the site which had been sitting idle for several years. The land would not be sold but would be transferred from the ministry of heavy industries to the ministry of power. Hindustan Cables factories at Rupnarayanpur, Naini and Hyderabad were idle due to lack of orders. These factories employed respectively 1,000, 250 and 900 people.[4] In 2012 the ministry was considering merging HCL with the Ordnance Factory Board. Rashtriya Ispat Nigam Ltd. (RINL) had indicated interest in taking over the Hyderabad unit also ruprnaraynpur unit.[5]

Revival[edit]

in year 2011–13 proposal was submitted for handing over HCL to DEFENCE ministry. Good progress has been made and restructuring is under way for the organisation. Several visits were made to the units by ordnance factory board personnel. Further action is underway, awaiting budget sanction. But nothing is held. 18 months salary of employees are still pending.

Liquidation[edit]

In September 2016, the Cabinet has given its final nod for strategic closure of Hindustan Cables that has stopped output since 2003. It has also approved an outlay of more than Rs.48 billion to pay statutory dues to these firms’ employees and creditors. The company has incurred heavy loss of nearly Rs. 31.39 billion. Minister of Heavy Industries and Public Enterprises, Anant Geete said that as per the proposal, the centre will offer attractive VRS before closure of the firm. The voluntary retirement packages will be based on 2007's pay scale. [6]

References[edit]

  1. ^ a b "Company Profile". Hindustan Cables. Retrieved 2 May 2012. 
  2. ^ a b "Regarding revival of Hindustan Cables Limited and non-payment of salaries to its employees". Kanoon. 17 August 2006. Retrieved 2 May 2012. 
  3. ^ Kazmi (2008). Strategic Management And Business Policy. Tata McGraw-Hill Education. pp. 220–221. ISBN 0070263620. 
  4. ^ Debjoy Sengupta & Sutanuka Ghosal (6 August 2011). "Hindustan Cables may come to NTPC's rescue". The Economic Times. Retrieved 2 May 2012. 
  5. ^ "What is the status of revival of HCL ?". HCL. Retrieved 2 May 2012. 
  6. ^ http://www.wirecable.in/2016/09/govt-plans-to-shut-down-hindustan-cables-ltd-hcl/