Privatization of Chemco : birth, growth and sale of an Indian PSE

Since 2000, fourteen Central Public Sector Enterprises have been divested to Private sector strategic partners in India. However, there is a paucity of empirical work on the process of privatization and changes that take place post privatization. A study was carried out to trace the genesis, growth, eventual sale of a PSE to its competitor. The findings were presented using the Burke-Litwin model. Our study showed that the performance and morale of the PSE declined during the privatization phase. Post privatization experiences of the PSE indicated that there was a marked improvement in the efficiency, leading us to conclude that the PSE changed from being a proud family of nation builders to an efficient factory with obedient workers.