Cairn India employees are gearing themselves for the transition. The company, which till yesterday was headed by a Scottish rugby player, has now got an India-born gutsy entrepreneur as its majority stakeholder.

Industry observers say Cairn India will now have the benefit of entrepreneurial aggression and access to capital. But, retention of talent pool will be a big challenge for Vedanta.

Vedanta, as the Group's track record shows, does not change the management of the acquired company unless necessary, industry observers say. In other words, the style of operations may not undergo any radical changes, they added.

The basic difference between the two entities – Cairn Energy and Vedanta Resources — will be that Vedanta does not have the exploration and production background.

For Cairn India employees, the issues are more basic. “Failure was not punishable” in Cairn India which meant people could work without fear, take risks, say those closely associated with the business. Will the same freedom be available under the new regime?

However, on the human resources policy front, there may be some variations, as each management has its own strategy, industry trackers said. The interaction between the top management of Cairn India and the employees was frequent. They hoped it would remain same, they added.

>richam@thehindu.co.in

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