Download - Kesc Restructuring
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Group
M Farooq (1135154)
Mithan Kumar (1135151)
Manoj Kumar (1135150)
Amjad Ali Abro (1135280)
Supervised By:
Saba Naseer
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Karachi Electric Supply Corporation is the Biggest
company in the Pakistan, where 11600 employees work
over there at current and it is also one of the oldest
company in Pakistan it was established before the
independence of Pakistan, and incorporated in 1913,
under the Indian act of 1882, and K.E.S.C became
Nationalized in 1952.
On November 29, 2005 it was re-privatized. In 2008
K.E.S.C management had been changed.
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Circular Debt:
Power Purchase Agreement (PPA)
Generation & Transmission
Human Resources Business Operations
Theft
Technical
Labor Issues
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Has K.E.S.C Control on
Management crises
Billing mismanagement and poor customer
Resolve the Employee issues
Technical losses
Anti theft System
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Research designIt is a Qualitative analysis with exploratory in nature.
Methodology
It cites in-depth analysis of data through structuredquestionnaire and interviews from middle and topmanagement.
Research instruments
data availability through;
Primary data
Secondary data
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Population and Sample
Population : 100
Sample size: 50
Treatment of data
Ms excel 2007 Represent data by Graphs
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Company literature
(K.E.S.C) is an electric power utility company dealing
above 2.1 million consumers in Karachi city.
It works in around 6000 km of enormous region to
furnish electricity.
K.E.S.C has caused circular debt and failed to pay overRs120 billion dues of SSGCL, PSO and WAPDA,
causing financial losses to these organizations.
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Local Literature
In Pakistan effective privatization era started from 1991.
When K.E.S.C was handed over to Abraaj capital, it
became the private sectors first step to hire a newmanagement and the very first was to make the plan for
restructuring.
When K.E.S.C lay off the 4000 worker, the workers made
the entire city restless and due to such these situations
K.E.S.C operations almost got dysfunctional.
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Foreign literature
Chinese Electric Power Market stepping into E-commerce
China is having a proactive approach towards the problems
like China uses information technology in its electric powerindustry: in the beginning of 1960.
As a result of these efforts Chinese electric power industryand government took for reform power sector and got many
benefits like increasing of economical profit, theimprovement of power dispatching ability and manageriallevel.
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California Failed Electr ic Power I ndustry Reforms
California had many issues which relates there power sector
and most crucial issue was that utility price of electricity
was too high
The reason for these high prices of electricity was the raw
material they have used like natural gas, oil prices showing
upward trend and the other reason was increase in demand
of electricity consumption. Government had no plan for
future to generate the electricity.
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Electr ic power services: recent reforms in selected foreignmarkets:
The researcher investigated markets reforms in variouscountries named Australia, Argentina, Brazil, Canada,
Chile, European Union, Japan, Venezuela and New Zealand.These countries constitute 35 percent of global electricpower consumption.
These changes especially; technology is boosting the
restructuring reforms which has increased the efficiency inpower generation cost. The reform program containsdomains for restructuring are, market restructuring,privatization, vertical restructuring and regulatory reforms.
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The restructuring of K.E.S.C may also help PSO and SSGC to buildsolid business relationships by supplying furnace oil and gas properlyto electric giant companies to generate and distribute the electricity.
Other giant electric companies (WAPDA, HESCO, SEPCO. PEPCOetc.) Can control electricity short fall by restructuring.
Restructuring K.E.S.C will also support other electricity supplycompanies about performance management at all levels to hold andmanage actual and proper resource for generation and distribution ofelectricity to the end point.
This report will also help out reader to go for major electricitygeneration projects such as coal project etc. by restructuring.
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Main purpose of this restructuring was to generate electricity, move tothe profit side and control on overstaffing brings the wholeorganization in a systematic way and will generate the revenue.
For future Prospect K.E.S.C has made long term strategy and betterpolicy for reaching at maturity level and make it profitable. Their main
focus is on the bill recovery, customer care employee development andcontrol on theft system.
Overall summary of this whole research is that whole process ofrestructuring company have faced many hurdles from the employeesand from the government as well, although the whole process have
been implemented successfully and most of the respondent alsocommented that restructuring had positive effect on K.E.S.C and withinfew years K.E.S.C will solve the all problem and reach at the profitside.
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K.E.S.C will have to make some strategies about employeesdevelopment and provide competitive salary and benefits, as they
become motivate and loyal with K.E.S.C.
Mission and vision playing important role for achieving something so,K.E.S.C should have to clear a vision and mission and align employees
goal with the organizational goal.
Now a days technology getting more popularity in the world so,K.E.S.C should have to update yourself and get ideas from developedcountries how did they manage our self.
K.E.S.C has to think out of box, extend the circle from distribution tothe generation and install the research and development department sothey will give the innovative idea for generating the cheap electricity.
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