Singareni Collieries Company Ltd (SCCL/ the company) is the only coal company in public sector in the Southern India. It has a history of more than 100 years. In the earlier it has also first referred to Board of Industrial and Financial Reconstructions (BIFR), during the periods 1989-90 to 1992-93. Singareni has come out by following the terms and conditions of the BIFR. In the year 1996-97 the accumulated losses reached a peak of Rs. 1219 crore. But for the second time it has referred to BIFR. In the industry parlance second time reference to BIFR does mean its closure of the industry. But the company management with actively identified various problems for the loss of the company. The company decided to face the challenge. The innovation that adopted by this company is communication strategy. All the types of communication i.e. upward, downward communications, direct and indirect communications, formal and informal communications, communication with opinion leaders and parallel communication have been strategically used for communicating the workers about the status of the company. Even grape wine communication have been adopted is a powerful tool to inform and educate the employees. This has created and awareness about the financial position of the company and created a sense of motivation/belongingness among all the employees. This has dramatically resulted into regular attendance, increased production, improvement of quality of coal, control of wasteful expenditure and inventory, un account consumption of free power and fuel. All these have resulted into turn-around of the company which has become out off clutches of BIFR. The same company has subsequently declared dividends.