SRI SABARI ENGIMECH PVT. LTD.: HARD TIMES AND RECOVERY IN
THE OPERATIONS AND MAINTENANCE MARKET CASE STUDY
SOLUTION
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SYNOPSIS
This case assesses the future course of action for Sri Sabari Engimech Private Limited (SSEPL), a firm that
provides contract-based staff, and servicing and maintenance of equipment for the operations and
maintenance (O&M) of plant and machinery (P&M), mainly in the petrochemical sector in India. SSEPL
n
was founded in 2001 by Mulayath Balasubramanian Nair (Balasubramanian), a mechanical engineer. Prior
tio
to starting his own company, Balasubramanian was working as a project engineer with Dodsal Enterprises
Private Limited (Dodsal), a foreign multi-national company (MNC) engaged in providing consultancy
services, mainly for the Operations & Maintenance (O&M) of Plant and Machinery (P&M). When Dodsal
lu
took up the O&M work of P&M for the Jamnagar Refinery of Reliance Industries Limited (Reliance
Industries), Balasubramanian was appointed as the Project Head. Once the installation work was completed,
So
Dodsal decided not to renew the Reliance contract, as they had much bigger assignments abroad. That is
when Balasubramanian started his venture, and secured Reliance Industries’ contract for managing the
O&M of their P&M. The new venture was started as a proprietorship concern (with the name Sri Sabari
Engineers), but as business volume increased, it was expanded as a partnership firm with 7 partners, of
The Case Solution Starts From page 5
,OBJECTIVES
• Appreciate the business opportunities available in the O&M of P&M in the oil refinery, engineering,
construction, and other industries;
• Analyze the circumstances that have led to the starting of this business and examine the planned and
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unplanned aspects of venture growth;
• Understand the statutory requirements SSEPL must comply with when managing its contract-based staff;
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• Understand the different types of O&M contracts that a company can set up with client organizations
and the requirements of an O&M contract to maintain a good owner-contractor relationship;
m
• Assess the advantages and disadvantages for the principal employer (eg: Reliance) and the contractor
(eg: SSEPL) in such partnerships;
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• Be aware of the challenges faced by a staffing contractor working in the O&M of P&M in the
petrochemical industry;
• Explore the various options available to Manoj to improve SSEPL’s bottom line in the O&M-services market.
n
tio
lu
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What are the circumstances that led Balasubramanian to start a contract-based-staffing business
handling the O&M of P&M? In light of the case, do you think a planned move to found SSEPL would
have been better than an accidental one? Explain the reasons for your viewpoint.
2. Analyze the advantages and disadvantages that could accrue for Reliance Industries as a result of having
SSEPL serve as its primary O&M contractor.
3. Discuss the critical functions of contract-based staff at SSEPL and its responsibilities in properly
managing these functions.
4. What challenges have Balasubramanian and Manoj faced in their entrepreneurial journey up until this
point? How have they overcome these challenges?
5. What measures should SSEPL take to ensure that it thrives in the highly competitive O&M-services
market for the P&M of petrochemical construction and other related industries?
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The Case Solution Starts From page 5
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pl
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ANALYSIS
tio
1. What are the circumstances that led Balasubramanian to start a contract-based-staffing business
handling the O&M of P&M? In light of the case, do you think a planned move to start the business
lu
would have been better than an accidental one? Explain the reasons for your viewpoint.
This case is about Balasubramanian accidentally coming across a situation that opened up the opportunity
So
for him to become an entrepreneur supported by the company he has been already working for, Reliance
Industries. This, in turn, was a good proposition for Reliance Industries in that it allowed the company to
continue receiving the same services it has previously been receiving from Dodsal, with its business
unaffected. Balasubramanian’s prior knowledge of O&M-service businesses gave him the confidence to
quit Dodsal Enterprises and start a new venture, Sri Sabari Engineers (SSE).
The circumstances that led to the new business venture are as follows: Balasubramanian, a mechanical
engineer by profession, was working as the project director for the O&M contract of Dodsal for the
construction of P&M of the Jamnagar oil refinery project run by Reliance Industries. After the construction
work was been completed for the refinery project, the contractor in charge of the project, Dodsal
Enterprises, left India, as they were not interested in taking up the post-construction O&M-work Reliance.
As they were a large, Dtubai-based infrastructure development and project management company, Dodsal
Enterprises considered this type of work too small for their competence and resources, and wanted instead
The Case Solution Starts From page 5
THE OPERATIONS AND MAINTENANCE MARKET CASE STUDY
SOLUTION
e
pl
m
Sa
SYNOPSIS
This case assesses the future course of action for Sri Sabari Engimech Private Limited (SSEPL), a firm that
provides contract-based staff, and servicing and maintenance of equipment for the operations and
maintenance (O&M) of plant and machinery (P&M), mainly in the petrochemical sector in India. SSEPL
n
was founded in 2001 by Mulayath Balasubramanian Nair (Balasubramanian), a mechanical engineer. Prior
tio
to starting his own company, Balasubramanian was working as a project engineer with Dodsal Enterprises
Private Limited (Dodsal), a foreign multi-national company (MNC) engaged in providing consultancy
services, mainly for the Operations & Maintenance (O&M) of Plant and Machinery (P&M). When Dodsal
lu
took up the O&M work of P&M for the Jamnagar Refinery of Reliance Industries Limited (Reliance
Industries), Balasubramanian was appointed as the Project Head. Once the installation work was completed,
So
Dodsal decided not to renew the Reliance contract, as they had much bigger assignments abroad. That is
when Balasubramanian started his venture, and secured Reliance Industries’ contract for managing the
O&M of their P&M. The new venture was started as a proprietorship concern (with the name Sri Sabari
Engineers), but as business volume increased, it was expanded as a partnership firm with 7 partners, of
The Case Solution Starts From page 5
,OBJECTIVES
• Appreciate the business opportunities available in the O&M of P&M in the oil refinery, engineering,
construction, and other industries;
• Analyze the circumstances that have led to the starting of this business and examine the planned and
e
unplanned aspects of venture growth;
• Understand the statutory requirements SSEPL must comply with when managing its contract-based staff;
pl
• Understand the different types of O&M contracts that a company can set up with client organizations
and the requirements of an O&M contract to maintain a good owner-contractor relationship;
m
• Assess the advantages and disadvantages for the principal employer (eg: Reliance) and the contractor
(eg: SSEPL) in such partnerships;
Sa
• Be aware of the challenges faced by a staffing contractor working in the O&M of P&M in the
petrochemical industry;
• Explore the various options available to Manoj to improve SSEPL’s bottom line in the O&M-services market.
n
tio
lu
So
The Case Solution Starts From page 5
,ASSIGNMENT QUESTIONS
1. What are the circumstances that led Balasubramanian to start a contract-based-staffing business
handling the O&M of P&M? In light of the case, do you think a planned move to found SSEPL would
have been better than an accidental one? Explain the reasons for your viewpoint.
2. Analyze the advantages and disadvantages that could accrue for Reliance Industries as a result of having
SSEPL serve as its primary O&M contractor.
3. Discuss the critical functions of contract-based staff at SSEPL and its responsibilities in properly
managing these functions.
4. What challenges have Balasubramanian and Manoj faced in their entrepreneurial journey up until this
point? How have they overcome these challenges?
5. What measures should SSEPL take to ensure that it thrives in the highly competitive O&M-services
market for the P&M of petrochemical construction and other related industries?
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 5
, e
pl
m
Sa
n
ANALYSIS
tio
1. What are the circumstances that led Balasubramanian to start a contract-based-staffing business
handling the O&M of P&M? In light of the case, do you think a planned move to start the business
lu
would have been better than an accidental one? Explain the reasons for your viewpoint.
This case is about Balasubramanian accidentally coming across a situation that opened up the opportunity
So
for him to become an entrepreneur supported by the company he has been already working for, Reliance
Industries. This, in turn, was a good proposition for Reliance Industries in that it allowed the company to
continue receiving the same services it has previously been receiving from Dodsal, with its business
unaffected. Balasubramanian’s prior knowledge of O&M-service businesses gave him the confidence to
quit Dodsal Enterprises and start a new venture, Sri Sabari Engineers (SSE).
The circumstances that led to the new business venture are as follows: Balasubramanian, a mechanical
engineer by profession, was working as the project director for the O&M contract of Dodsal for the
construction of P&M of the Jamnagar oil refinery project run by Reliance Industries. After the construction
work was been completed for the refinery project, the contractor in charge of the project, Dodsal
Enterprises, left India, as they were not interested in taking up the post-construction O&M-work Reliance.
As they were a large, Dtubai-based infrastructure development and project management company, Dodsal
Enterprises considered this type of work too small for their competence and resources, and wanted instead
The Case Solution Starts From page 5
