Coastal projects lts is an infrastructure based company which specialized in underground excavation and tunnelling in india. It has reached the heights of rapid growth and bagged a forturne amount of book value of projects. It has taken over variety of projects such a irrigation, power, hydroelectric and metro-rail projects. so, this made the private equity firms (PE) to invest in the company suddenly. the company faced a technical problem in one of the TBM(Tunnel Boring Machine) at veligonda, andra pradesh in 2010. This was the start of the declination of the growth of the company as it faced many problems incuding delay in execution due to various government and environmental clearances, geological conditions, technical problems in TBMs, delays in getting approvals from clients for change of scope of works and other related issues. Further, award of new ordrs got affected due to sluggish growth in infrastructure sector. As the company's growth is shattered, the lenders decided to input strategic debt restructuring (SDR). The banks are in the process of converting a portion of their loans into eqity using the RBI's SDR scheme as they can still look for anew buyer taking the present management. * Whether lack of risk management is the sole reason for the current situation of the company? * Will the new buyer, if any , help turn the company around? * Will the company can turnaround with drastic modifications in the strategic management?
Mamillapalli, R. S., & Rao, P. H. (2019). Downfall of Indian Tunneling Giant: A Case On Coastal Projects. IMT Case Journal, 9(2), 11-25. https://jetbm.imtnagpur.ac.in/journal/vol9/iss2/2