Calcutta, May 23 :
US consultants McKinsey & Company has drawn up an organisational structure for Haldia Petrochemicals Limited (HPL), suggesting formation of three strategic business units (SBUs) ? naphtha cracker, chemicals and polymer ? which will operate as independent profit centres.
?The proposed organisational structure will make the management of this mega project less cumbersome,? the sources said.
The naphtha cracker is the mother plant of this Rs 5,170-crore project. HPL?s main products ? polypropylene, high-density polyethylene and linear low density polyethylene ? will be manufactured in the polymer division. The chemicals division will manufacture benzene, butadiene, C4 and C6 raffinate, gasoline and carbon feedstock.
PL chairman Tapan Mitra, when contacted, declined to comment on the contents of the report.
The HPL board will meet in June to take a decision on the McKinsey proposals.
Mitra said McKinsey took into account the suggestions of many experts who studied in detail both the Indian and international petrochemical markets.
Sources said under the McKinsey proposals, each SBU will be responsible for the product right from production to the final marketing stages.
?This will create healthy competition which will ensure better productivity and accountability,? the sources said.
HPL is also weighing two other operational structures: functional management that brings all divisions under a single management system, with power delegated from the top to bottom, and matrix management that suggests multiple reporting system and decision making teams.
?However, these two systems have many disadvantages which may lead to lack of co-ordination. The SBU system, therefore, may be acceptable to the company,? the sources said.
Mitra said the appropriate organisational structure would soon be decided since the commissioning date of the project is not far off.
?The construction work is nearing completion, and we will be ready for commercial production by the end of the third quarter of the current financial year,? he said.
The company has already started its marketing activities, opening four regional offices in Calcutta, Mumbai, Delhi and Chennai.
HPL vice president (marketing) Shankar Banerjee said seed marketing, which started last year, has evoked very good response particularly in eastern and southern India.
?We have marketed about 30,000 tonnes of plastics in 1998-99 via the import route. We will continue to import and market these products till our own commercial production starts,? Banerjee said.