Union Carbide

Corporation
Bhopal Gas Tragedy
 Case Flow
 1st – General Description of the event
 2nd – How the management reacted to the
situation
 3rd - A key US court decision on Bhopal
case.
 Stakeholders
 Union Carbide India Limited (UCIL) formed
in 1975 with 3 major stakeholders, formed
at Bhopal.
 UCC – 50.9 % (CEO – Warren Anderson)
 Indian Government – 22 % (Prime
Minister – Rajiv Gandhi)
 Indian Nationals – 27.1 % (via BSE)
 Event Flow on D-Day
 At 2 am on 3-Dec-1984, about 10,000 gallons of
Methyl Iso-Cyanide (MIC) leaked via one of the
storage tanks
 A hazy white smog engulfed greater part of
Bhopal, leaving 2500 died and 1,00,000 injured.
 Bhopal railway station and the suburban area
turn to corpse city.
 People flood the local hospital with chest pain,
burning sensation and vomiting
 After - Effects

 Rajiv Gandhi the then Prime Minister

arrives Bhopal within 2 days.
 City of Corpse
 Keep Calm
 Cronyism
 Effects on UCC
 MV of UCC down by US $ 832 million
 Host of cases filed against UCC in US wrt their
US production plant.
 If all the petitions of Indian people is
successfully challenged in US court, the total
penalty amount would stand at US $ 5 Billion,
the net worth of the company in 1984.
 CEO, Mr. Warren Anderson flies to India with an
immediate relief fund of US $ 1 Million.
 Erosion of companies capital and business by
over 25 % on a single day.
 UCC post 1984
 UCC sold most of its business and segments to
various bidders over the years
 1988 – Allied Signal and Union Carbide complete
formation of UOP Joint venture
 1991 – Mitsubishi Corp. takes 50 % stake in
UCAR carbon.
 1994 – Sale of UCC stake in UCIL to McLeod
Russel
 2001 – UCC becomes a wholly owned subsidiary
of Dow Chemical, take over valued at US $ 11.6
Million.
Thank You