FLAME

CASE CONFERENCE 2015

WELCON LIMITED: PROJECT MILESTONE*

ABSTRACT
Mergers and acquisitions are a common happening in business and the corporate world. We see this happening all
round us today, among start-ups as well as major long-standing companies. Within this downsizing, and golden
handshakes, to get companies to be lean, thin and mean and profitable is also commonplace and often. The
challenges of this are generally wide ranging and affect people (employees) structures, HR, corporate culture and
integration, along with finances.
One such real-life example, and discussed in this case-study, was of Welcon Limited, a large pharmaceutical company,
in Mumbai, downsizing considerable manpower in Mentil Pharmaceuticals Ltd., acquired from of a large business
group that was systematically exiting and divesting in its non-core businesses and companies consumer products
and pharmaceutical, among others.
Welcon Limited set itself a task of reducing Mentils manpower by 400 employees in a short period of 3 months!
A task which would greatly impact the employee structure, their integration, morale and motivation in the activities,
as well as overall culture, just as much as its overall business growth and profitability objectives, in the Indian
pharma industry.
The case study explores the circumstances in which a special Voluntary Retirement Scheme (VRS), for the erstwhile
Mentil employees was conceived, planned and implemented for the acquired smaller and loss making pharma
company, and in order to integrate the employees of the merged entity to be more efficient, productive and
profitable.
The case study explains how the VRS was met with resistance from the staff Union, and a large section of the
Mentil workers, and the strategy utilised by Management to overcome a crisis which had potential for blowing
into a negative situation of significant proportions.
The case study discusses and provides details of the VRS at Welcon, along with information on how it was
designed, communicated and sold to the employees by a Task Force, after witnessing some resistance and agitation,
and then finally the desired positive result, and peaceful outcome.
Besides the discussion on the VRS, the case study states the ultimate outcome in respect of the companys
hard-nosed HR and IR stand, communications and PR strategy, with a win-win situation for the Management and
all employees, within the companys objective of bringing about integration and motivation, and feel-good
factor in the end.

Pedagogical Objectives

To handle a sensitive and crucial crisis in a companys survival and growth involving its employees inherited,
and the impact on the existing employees morale and integration issues

To analyze, plan, and devise a real and effective strategy in managing employee productivity and general
profitability in a take-over and acquisition situation which is unusual and uncommon in all respects of
managing a company and business

To have a broad overview and handle of key financial and legal aspects in such a situation affecting management
and employees

* FLAME CASE CONFERENCE 2015

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