The case for a holding company.
Manish Sabharwal, Chairman, Teamlease Services, has written an excellent piece on Public Sector Undertakings (PSUs) in the Indian Express (dt.June 30,2016. The Public Sector Undertakings (PUUs) have a total invested capital of Rs.17,44,321 crore and the paltry returns on this capital is the main reason for the disrepute of socialism in India. He tells us that only 163 out of 290 PSUs are profiable. They are over-manned and they are being run like the government departments.The solution, as suggested by Sabharwal, is to professionalize its management. They should be converted into public limited companies with the participation of general public to ensure more accountability. There could be more than one holding company instead of one based on the sector of manufacture. The management structure should be such that the company makes full use of capital - financial, physical and human capital. Articles of Manish Sabharwal always contain new ideas and are full of insight.
http://indianexpress.com/article/opinion/columns/the-case-for-holdco-psu-holdings-2884298/
July 4, 2015.
*********
