The Restructuring of ABB India

Profit after tax declined from Rs 648.5 mn to Rs 372.0 mn in the same period (Refer Exhibit I for 1997-99 financial statements). ABB India attributed the sluggishness in the power and industrial sectors as the primary reason for its dismal performance. Apart from the lacklustre financial performance, ABB India was facing organizational problems. Over the years, the company's workforce had become lethargic and was unconcerned about the company's poor financial performance. ABB India faced organizational culture-related problems as well. The company was not expecting much financial support from its headquarters as the parent company too was going through an equally dull phase due to global recession and internal organizational restructuring difficulties.

Uppal transformed ABB India from a project-centric company to a customer-centric one. He was given the challenging task of doubling the revenues of ABB India in less than five years. Uppal aimed at accomplishing this task by implementing a major restructuring plan. After its implementation, ABB India's financial results improved. The company's revenues rose from Rs 8.068 bn in the fiscal 2000 to Rs 15.031 bn in the fiscal 2003. The company's profit after tax rose from Rs 540.1 mn to Rs 1008.9 mn in the same period. Industry experts felt this was a significant achievement for the company as the power and automation technology industry was still facing severe recession.