Abstract

This case study chronicles the miraculous journey of Central Electronics Limited (CEL), a Government of India enterprise under the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology. In less than four years, CEL journeyed from the brink of privatisation to achieving Mini Ratna (Category-I) status. Initially declared sold under a strategic disinvestment deal, CEL narrowly avoided privatisation after legal complications arose with the selected bidder. What began as a crisis became the catalyst for revival. Under the leadership of Chairman & Managing Director Chetan Prakash Jain, the organisation undertook bold decisions, strategic reforms and innovative HR interventions to rebuild institutional credibility and restore employee morale. Renowned as a pioneer in solar cell technology in India, CEL took the difficult but pragmatic decision to exit direct solar manufacturing and reinvent its operations through Public-Private Partnership (PPP) model, thereby containing losses while preserving its technological edge. One of the most striking elements of CEL’s turnaround was the cultural transformation that the organisation underwent for the first time in its history. The leadership showed strong commitment to building a caring and inclusive culture without compromising on integrity, discipline, or performance standards. The CEL case study underscores the role of bold and resilient leadership, stakeholder engagement, strategic diversification and financial reforms in reviving organisations in distress. As former Vice President of India Shri Jagdeep Dhankar observed, “The success of CEL is a case study, a role model for others to emulate.” (CEL, 3).

Keywords: Leadership, Public Organisation, Revival, Disinvestment, Electronics Industry, HR reforms, Strategic Reforms, Work Culture, Trade Unions, Mini Ratna.

Introduction

“You may think I am here to privatise your job — but know this: if there is anything wrong in the entire process, I am the one, and the only one, who can and who will raise it at the right forum. Today your salary comes from the Government, tomorrow it may come from a private owner — but I will continue to be your best bet.” This was Chetan Prakash Jain, Chairman & Managing Director of Central Electronics Limited (CEL) engaging with an agitated group of his own employees who were protesting against the disinvestment of their company.

CEL, a public sector enterprise under the Govt. of India had long been loss-making and classified as “sick.” In November 2021, the government approved its strategic disinvestment, with 100% stake sold to the highest bidder, Nandal Finance and Leasing Pvt. Ltd. for Rs. 210 Crore (PIB 2021). By March 2022, CEL was expected to transfer to private ownership and given the limited credentials of the buyer, prospects for the organisation’s revival appeared bleak.

Yet, as of 2025, CEL continues to be a government-owned PSU. In fact, it was accorded Mini Ratna (Category-I) status in 2024, and the company has been paying consecutive dividends to the exchequer (PIB 2024a). This seemingly impossible transformation came through persistent pursuit of tough operational decisions by a strong leadership, hard negotiations with stakeholders and disciplined financial reforms, combined with HR measures that restored morale and accountability. The quick turnaround of CEL has created such milestones and moments that believe its humble beginning and modest turnover.

CEL – Evolution and Legacy

Founded in 1974, CEL started as an enterprise to commercially exploit indigenous technologies developed by National Laboratories and R&D institutions in the country. It has a proud legacy of pioneering achievements—including the development of India’s first solar photovoltaic (PV) cell in 1977 and commissioning of the first solar power plant in 1992 (Ref Website). It is popularly recognised as the first Indian enterprise in India to produce solar cell. It also established itself as a major player in providing critical components for Railway Signalling Systems and Defence Sector. (CEL)

CEL initially received grants to undertake research projects in collaboration with government laboratories under the by Department of Science and Technology and Department of Defence. Its paid-up capital of the company was completely owned by the Government of India. CEL primarily catered to high growth sectors such as solar, railway signalling system, defence etc. Given that these industries were mostly supported by government funding, the business environment initially appeared quite promising. Yet CEL ended up with very alarming financial condition and was considered potentially sick owing to loss of more than 50% of its net worth by 2012.

The company did witness a renewed phase of growth around 2016-17 under the leadership of Nalin Singhal as Chairman and Managing Director (CMD). He worked on fixing some of the long pending issues and initiated structural reforms. His efforts showed encouraging results initially with company posting profit in 2018. But all these efforts were not sufficient to propel CEL out of the disinvestment list. In 2016 the disinvestment of CEL had been granted in-principal approval by the Cabinet Committee on Economic Affairs. After several unsuccessful rounds, it was finally sold to the highest bidder in November 2021. Issue of Letter of Intent and signing of Share Purchase Agreement were left to be completed and it was supposed to be over by end of Financial Year 2021-22. But as they say in cricket, you never know until the last ball is played.

Leading a Lost Cause

Chetan Prakash Jain joined as the Chairman & Managing Director (CMD) of CEL in April 2021 when the disinvestment process was at its peak. He was already the Joint Secretary and Financial Advisor in the Department for Scientific and Industrial Research (DSIR), the parent department of CEL and was given the additional charge of CMD CEL in addition to his existing role. It was apparent that a regular CMD was not required for a PSU being sold off. As such, major role for the part-time CMD was to just see off CEL through a smooth disinvestment process.

An officer of the Indian Railways Personnel Service, Chetan had been through many sensitive assignments before. He was the Director with the Appointment Committee of Cabinet (ACC) coordinating the appointment of the senior most officials of Government of India and was also member of the Staff Selection Commission (SSC) where he oversaw some of the largest recruitments in the country to fill up popular government posts. He had worked in various senior positions in Indian Railways and as General Manager in another Public Sector Unit, Rail Vikas Nigam Limited (RVNL). But this role was very different.

Chetan assumed the charge at CEL amidst the harsh COVID wave of 2021, which had grappled the whole nation. The conditions severely restricted normal business everywhere. Meanwhile, in CEL there was a huge resentment among employees who had been opposing the privatisation moves throughout last few years. CEL was barely left with 275 permanent employees on its roll and another around 450 contractual employees. Still, it had a couple of very strong and active employees’ unions which were supported by different national level trade unions. These unions have been pressurising through agitations, protests and gate meetings to call off the privatisation process. The industrial relations scenario was very challenging in CEL. There were many instances of unions blocking the entry gates and main office building during protests. They would organise show of strength in front of higher officials frequently. A newly joined company secretary shared her experience of being trapped inside the office and her team could not move out of the building due to a large crowd protesting on the campus. She feared so much for her safety that she called up the CMD requesting for help. Rajat, who was General Manager (GM) HR felt that the management did not have much to negotiate with the unions at that time and could only try to contain and manage the situation.

 While the industrial relations scenario was already strained in CEL, Chetan remembers that his own entry was seen more as a facilitator of the privatisation process. His role as Financial Advisor in the parent department DSIR, in addition to the part-time responsibility as CMD, did little in convincing the employees that the new CMD would be considerate to their cause. It was during this period that prospective bidders were being explored for CEL. Chetan poignantly remembers that the day financial bids were to be opened for CEL in Cabinet Secretariat in New Delhi, trade unions created a huge showdown at the CEL campus. The campus is in the Sahibabad area of Delhi-NCR, housing the whole facility and the offices, including the CMD office. Slogans like “CMD chor hai” (CMD is a thief) and “Go Back Chetan Jain” had already been thrown at him before by the union members. Although it appeared a forlorn cause, Chetan did not wish to be just driven by the flow of events. He wanted to be in-charge and respond to the employees who he felt deserved a genuine response from their chief. When he got the news of the protest, Chetan wanted to visit the office immediately but his team advised against such a move and he was also required for the bid opening process. He still tried but could not reach the CEL campus that evening. As a seasoned HR officer himself, his vast experience in managing industrial relations had taught him that the employees of CEL were the most important stakeholders of the company and they should be heard and responded to, even if the demands appeared divergent to government policies. And he did exactly that.

The Miraculous Fightback

The next day Chetan reached the CEL campus early, determined to speak with the union members, employees, officers and administrative staff those who would be most directly impacted by the impending change of ownership. He recalled gathering all the senior officers, plant heads and union members and speaking for four hours straight, touching upon all the points related to the health of the company, demands of the employees and impending disinvestment. He told the employees that as CMD, he was their man at the helm. If they were aware of any malafide, they needed to apprise him because he could be their voice at the highest level. Chetan knew that even if the disinvestment process succeeded, he would have to run the company as an “ongoing concern” until it is finally handed over. Gaining trust of his employees and the leadership team was the most crucial act he needed to perform at that moment. Most of his officers and union members later shared that it was in that meeting, they first felt someone was genuinely interested in leading them out of this mess. It showed how true leadership doesn’t command confidence, but earns it through sincerity and shared purpose, motivating people to align behind a common vision.

As he was trying to take control of the situation, Chetan was also engaged in analysing the issues raised by the unions. Apart from opposing the policy of disinvestment, they were also questioning the whole process mainly over two major reasons: One was that the reserved price of Rs.194 crores for CEL appeared quite low. The other reason was with respect to the bidder Ms. Nandal Finance and Leasing Pvt. Ltd. This company had no credentials relating to the business of CEL nor did they offer any prospective plan. There were also doubts about the two bidders having business relations through common directors. Union members had even reached out to political parties for their support. The matter was also taken to court challenging the whole process.

The process of disinvestment in a Central Public Sector Enterprise (CPSE) is steered by the Department of Investment and Public Asset Management (DIPAM) through a thorough process involving several mechanisms and groups. Chetan knew that eventually whatever decision is taken, it will involve both DIPAM and the parent department, Department of Scientific and Industrial Research (DSIR) along with the consent of the Minister Dr. Jitendra Singh whose support was very crucial. He also knew that if a valid gap is pointed out in due process, only then the decision can be reconsidered. He engaged his team to verify all the facts and reached out to DIPAM as well. He was told that lack of credentials or under-valuation of company cannot be a valid reason to call off the deal. But in the process, they found out that the winning bidder, Ms. Nandal Finance had an ongoing litigation in National Company Law Tribunal (NCLT) which they had failed to disclose. This was a strong reason to question their bid. Briefing the Minister was the most important part and Chetan personally informed him. Strong political support definitely helped as the efforts paid off and finally in September 2022 the sale of CEL was terminated by the government citing the same reason. The employee unions considered it a great victory and it indeed was a major breakthrough. But Chetan was not done with his efforts yet. A series of challenges remained to be faced.

The Road to Reform: Tough Decisions, Smart Moves

The Central Government had scrapped the sale of CEL but it did not amount to withdrawal of the decision to disinvest the PSU. Company’s condition was marked by financial stress and operational inefficiencies apart from the declining institutional credibility in the market. CEL needed to enforce strategic business realignment as well as strengthen institutional discipline, both requiring a bold leadership and tough actions. Chetan knew that this opportunity for CEL to revive itself had come by in a very hard way and he did not want to miss that. Even before the scrapping of sale had happened in 2022, he had started to take some very hard decisions and was encouraging the team to explore innovative solutions and new segments to boost growth and revenue.

CEL was known to be the pioneer of solar cell in India and the company took pride in promoting itself as the leading PSU in solar module manufacturing. But this was a very costly business for CEL and while it had a huge share in the turnover, it was causing all the losses. Market had become highly competitive and prices had been declining, in part due to dumping by China. In past, steps were taken to automate the solar panel production line. Ex-CMD Singhal had made special efforts for expansion of solar module capacity with huge investment in automated production line and it also reduced the manufacturing cost of the panels but was not good enough to beat the market and it continued to show losses. Chetan knew he had no time for experimenting with any new approach. He took a bold decision to cease solar module manufacturing in order to curtail the losses. It was a tough decision for a company to abandon its mainstay and its identity, but he knew it was time to move on. He did ensure that Solar Photovoltaic Division was not completely dismantled. It eventually adopted a new mode of operation, through public-private partnership. Since CEL had invested in solar related infrastructure in the past, it decided to identify a private partner to establish a 200 MW solar module manufacturing line within CEL’s premises, replacing the legacy 40 MW line, under a PPP model. Chetan could not only bring down the financial burden of carrying the legacy but also utilised the existing resources effectively to remain in the solar business. The decision offers a vital lesson for any turnaround story. Revival often begins not with expansion, but with consolidation, clarity, and strategic reinvention.

While the closure of the solar module manufacturing facility helped reduce losses, it also negatively impacted the overall turnover. Product diversification and business expansion were given a major boost, with CEL venturing beyond its traditional lines with an aim to reduce dependence on a single product line and also positioning CEL’s as a multi-sector player aligned with national priorities. The defence business was already a dominant contributor in last 4 years, accounting for 37% of company’s revenue. CEL is the only manufacturer of Phase Control Modules (PCM) in India which is integral to radars used by our armed forces and hundreds of these radar systems have been deployed, including in the Akash Missile System. CEL manufactures some other components for Defence and has a strong association with the defence ecosystem of the country. Similarly, CEL has been a key supplier of axle counters for Indian Railways. Leveraging Chetan’s background as a Railway Officer, the company expanded into new railway technologies such as the Broken Rail Detection System for DMRC and Next Generation Digital Axle Counters. He further realised the need to diversify into other segments in order to capture high-growth businesses. He strongly encouraged his teams to explore. One such venture has been the Smart Board Manufacturing Unit which marks CEL’s entry into the production of smart classroom solutions. As the manufacturing facility getting operational, orders have started coming in and significant demands are anticipated especially from government. This has been quite a strategic initiative to channelise the existing manufacturing resources and skills into high-growth segment, at the same time aligned with the national goal of improving smart education in schools. CEL had experience of handling smart applications, managed by its Integrated Solutions Division. The focus on business growth led it to explore IT solutioning as well. It realised that there is huge potential in the field and has ventured into the area of blockchain technology designing HR modules for clients. GM of the division said that this is one company where IT solutions are being developed out of a shop floor. It just shows the thirst for diversification that could drive growth. CEL has also entered the field of digital infrastructure as it is setting up a datacentre in its premises on PPP mode. While it may sound quite surprising, the company sees strong prospects in India’s growing digital ecosystem and it is ready to leverage its resources, connections and skills in delivering technology-based solutions and products. The state-of-the-art Greenfield Data Centre would provide a secure digital infrastructure for the country.

The CMD’s actions reflected a conscious attempt to stabilise CEL’s finances while redefining its business direction. Chetan knew that revival could not be achieved merely through optimism or legacy pride. Years of accumulated losses, overdependence on a declining product line, and weak cost structures had undermined CEL’s competitiveness and market reputation. The difficult measures ceasing an unviable core business, pursuing diversification, and forging PPP-based ventures were not impulsive but rooted in financial prudence and strategic clarity. The innovations introduced were not ends in themselves, but instruments of a disciplined turnaround.

Stakeholder Engagement: Employees and Their Union

One of the most striking elements of CEL’s turnaround was the cultural transformation that the organisation underwent for the first time in its history. Recognising that employee morale and engagement were central to sustained performance, management consciously initiated programmes to bring together officers, staff, contractual workers, and even families into the CEL ecosystem.

It began modestly, with a few hundred officers being invited for common lunches and dinners. Once the positive response was evident, the initiative was gradually expanded to include non-executives, third-party employees, contractual staff, and eventually their families as well. Celebrations such as Diwali dinners and festive gatherings, and Offsite visits (such as to Lohagarh farms) became occasions where the entire CEL family could connect beyond work. This marked a total cultural shift from a siloed workplace to a community-oriented organisation where employees and their families felt valued.

Alongside, infrastructure was upgraded to reflect this renewed spirit. The erstwhile canteen was overhauled and transformed into a modern, auditorium-like facility. Earlier, employees retiring from CEL often hesitated to invite their families to the premises, but today, retirements are celebrated with pride. Families now happily participate, capturing photographs in refurbished venues such as Jubilee Hall, Swarnamandapam, and landscaped areas across the campus. The physical spaces of CEL became symbolic of a rejuvenated culture.

At the same time, the leadership demonstrated that cultural openness would be matched with uncompromising standards of integrity and performance. Tough but necessary measures were taken such as premature retirement of a General Manager on grounds of integrity and an AGM for persistent non-performance. Both officers were removed through the lesser used service review under Rule 56(J), part of the Fundamental Rule followed by Govt. of India, but rarely invoked. Similar actions were taken against erring trade union members. A strong union leader who had threatened a senior official was immediately suspended. His reinstatement was conditional upon his transfer outside the CEL campus and relinquishment of his union presidentship, which he accepted. In another incidence, union members were protesting and they claimed that if their arrears are paid, most employees would leave CEL due to high-handedness of management. Chetan immediately announced that anyone willing to leave will be paid full arrears and dues. He instructed accounts to arrange for the funds in case anyone wanted to leave. The announcement had a strong impact as the union leaders were left clueless about the response. The strong handling of unions was not without giving recognition where it was due. Union leaders today confess that it was Chetan who brought them to all official meetings as equal stakeholders. During every visit, he would ensure that the union leaders meet the dignitaries officially and even put forward their demands if they wished. Chetan ensured the same treatment to associations of SC/ST employees which was also active in CEL. His approach to involve the unions officially helped in giving the identity and scope that they wanted. His treatment of non-productive employees and union leaders was also done following due process to ensure that no one could claim injustice or partiality.

On one side, CEL achieved the milestone of paying dividends to the Government; on the other, for the first time in its history, employee perks were steadily enhanced from just 5% of basic pay to 20%. For employees, this was almost unbelievable  a transformation that not only improved welfare but also won the CMD the hearts of the people. Yet, this softer side was matched with uncompromising discipline, where integrity lapses and non-performance were dealt with firmly, sending a clear message that growth and welfare would only flow hand-in-hand with accountability.

CEL employees at all levels welcomed these initiatives which fundamentally reshaped CEL’s human resource environment. The renewed sense of belonging, inclusiveness and fairness fostered psychological security and emotional engagement among employees. Chetan’s authentic and participative leadership, marked by empathy, fairness, and moral courage was strong enough to turn compliance into commitment and discipline into shared purpose.

Major Reforms Driving Organisational Discipline and Efficiency

CEL undertook several unprecedented reforms that fundamentally strengthened its governance and operational systems.

• Timely Promotions: For the first time in the company’s history, all promotions were not only finalised but orders were also issued at least a day prior to the due date. This eliminated delays and uncertainty, instilling confidence and boosting morale among employees.

• Fast-Track Procurement System: A new mechanism was institutionalised to ensure speed and efficiency:

0 Indents raised are converted into tender enquiries within 1–2 days.

0 Purchase Orders are placed within 3 days of tender opening.

0 This streamlined process now covers up to 90% of procurement cases, resulting in greater transparency, agility, and cost-effectiveness.

• Enforcement of Discipline and Punctuality: A renewed emphasis on discipline led to a dramatic improvement in punctuality, with nearly the entire workforce reporting inside the premises by 8:50 am, the designated time of entry. This cultural reset reinforced efficiency and seriousness in day-to-day operations.

• Employee Welfare Measures: Long-pending arrears of salary along with interest were cleared, addressing critical employee grievances. In addition, with due approvals, CEL employees were granted formal access to CSIR guest houses across India—a significant welfare benefit extended for the first time. These reforms combined to deliver a new ethos of timeliness, accountability, and employee satisfaction, which underpinned CEL’s broader transformation journey.

While many of these reforms emerged through collective initiative and departmental innovation, their successful implementation was ultimately a reflection of the enabling environment created by the CMD. His leadership fostered a culture of empowerment, accountability, and trust where officers felt confident to take ownership and drive change. By setting clear expectations, encouraging transparency in decision-making and unwavering focus on outcomes, he transformed intent into institutional action. Reforms were no longer isolated interventions but got embedded in every aspect of CEL management.

CEL – The Brand

These reforms combined to deliver a new ethos of timeliness, accountability, and employee satisfaction, which underpinned CEL’s broader transformation journey. This has been made possible by strong leadership, quick decision making and a growth-led vision. Most CEL employees, including the senior management and unions, feel that they owe this transition to their new CMD. As a senior ED puts it, Chetan provided them insights into the way bureaucracy and industry worked. He shared the ways to work around hurdles and forced them into challenging positions. He was the first to involve General Managers in board meetings to boost their confidence and face the challenges first-hand – A hallmark of leadership that turned doubt into destiny.

One of the key initiatives taken by Chetan was the branding of the company to restore its credibility and even take it to the next level. He invited key dignitaries and partners to CEL campus such as Union Minister for Science and Technology Dr. Jitendra Singh, Secretary DIPAM, Chief of DRDO and senior officials from Railways, DSIR and other PSUs. The defining moment was the visit by The Vice-President of India Shri Jagdeep Dhankar whose presence was almost unbelievable for most CEL employees. Another big visit was by the popular Chief Minister of Uttar Pradesh Shri Yogi Aditya Nath, for laying of foundation stone for the Data Centre Project. These engagements amplified CEL’s institutional credibility and national relevance. Additionally, the whole experience of organising and hosting such dignitaries motivated the employees a lot. GM HR recalled that a new auditorium was to be inaugurated by the Vice President but the contractor was delaying it a lot. The concerned GM was quite scared that they won’t be able to make it ready on time. Chetan used to monitor closely and when just few days were left, and delay loomed, Chetan terminated the contract, took charge with his own team, declaring that if failure was to come, it should be on his account not because someone else shirked responsibility. This spirit of ownership left a lasting impression on colleagues. He would spend long hours in the campus and even spent a night on a park bench to ensure that the workers were aware of his presence throughout. Hours before the function, the auditorium got ready for inauguration. This leading from the front attitude of Chetan was visible in many of his decisions and it energised the employees on multiple occasions. Union Minister Dr. Jitendra Singh minced no words in mentioning that Chetan was the only person in his team who believed that CEL should survive and has now proven himself by turning it around.

From Being Marginalised to Becoming Mini Ratna

Strategic reforms and a rejuvenated workforce transformed CEL into a PSU with stronger financials, diversified operations and a proud brand. The financial and operational turnaround are remarkable. Between 2019-20 and 2024-25, while the turnover increased 1.5 times to Rs. 390 Crores, the net worth jumped 3.29 times and the overall profit after tax increased 23.6 times (CEL 2). Most importantly, CEL has passed over its profits in the form of dividends to the government, paying increasing dividends in last three years. For Chetan it was very important to show that the fundamentals of the company are not weak and it is still improving. CEL also paid off to all the employees which were pending for a very long time.

As CEL celebrated its Golden Jubilee on 26th June 2024 graced by the Vice-President of India, Union Minister Dr. Jitendra Singh announced the grant of Mini Ratna status (Category-1) (PIB 2024a). It is a special status granted to such Central Public Sector Enterprises who show continuous profitability in last 3 consecutive years with atleast one of the pre-tax profits over Rs. 30 Crores and maintain a positive networth. CEL marked its 50th year with a net profit of Rs. 58 Crores. This was Chetan’s defining moment. Not just because his efforts turned around CEL to a remarkable status, but also because the Mini Ratna Status came with greater financial autonomy, allowing them to make certain investments without explicit government approval. It has opened a new door for CEL to further explore avenues of growth. The Vice President of India Shri Jagdeep Dhankar noted that CEL is a role model for others to energise and motivate themselves so that they also grow similarly. To quote him “This story is not just about technological advancements; it is about transforming lives, empowering communities, and securing our nation’s strategic interests with innovation, resilience and excellence.” (PIB 2024b) What began as a tale of disinvestment ended as a saga of resurgence — CEL stands today as living testimony that strong leadership can turn the tide of destiny.

Exhibit I. Visit by the Vice-President of India Shri Jagdeep Dhankar along with Union Minister Dr. Jitendra Singh

Exhibit II. Visit by the Chief Minister of State of Uttar Pradesh Shri Yogi Aditynath and Union Minister Dr. Jitendra Singh for setting up of Green Data Centre

Exhibit III. CEL Team Outings and Events

Exhibit IV. Facilities Renovation & Upgrades

References

1. Government of India, Press Information Bureau. (2021, November 29). Government approves strategic disinvestment of Central Electronics Ltd. Press release. https://www. pib.gov.in/PressReleseDetailm.aspx?PRID=1776205

2. Government of India, Press Information Bureau. (2024a, June 26). Union Minister Dr. Jitendra Singh announced grant of ‘Mini RATNA’ status (Category-1) for Central Electronics Limited (CEL). Press release. https://www.pib.gov.in/PressReleasePage. aspx?PRID=2028866

3. Central Electronics Limited. (n.d.). History of CEL. Retrieved September 8, 2025, from https://www.celindia.co.in/about-cel

4. Central Electronics Limited. (n.d.). Annual report. Retrieved September 8, 2025, fromhttps://www.celindia.co.in/financial-report

5. Central Electronics Limited. (n.d.). Home page banner. Retrieved September 8, 2025, from https://www.celindia.co.in/