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CEO: Air Cmdr
SS Motial (Retd)
Year Of Start-up: 1948
Turnover: Rs 1,270 crore
Growth: 24 percent
Area Of Operation: Manufacturing, services
Employees: 24,550
Address: ITI House, 45/1 Magrath Road, Bangalore - 560 025
Tel.: 080-566116
Fax: 080-5593188
E-mail: iticorps@giasbg01.vsnl.net.in
Website: www.itiltd.india.com |
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Fiscal 1997-98 has been a
turnaround year for Bangalore-based PSU, ITI. The company not only registered 24 percent
growth in revenues—Rs 1,270 crore—from the previous year’s Rs 1,040 crore.
It also recorded a profit after tax of Rs 5.7 crore, after seeing red for three
consecutive years. This is something that the Indian telecom giant should celebrate in its
50th year of operation. In the process, the company has graduated from being a telephone
manufacturer to becoming a total solution provider. And, it has contributed to over 70
percent of India’s telecom network infrastructure.
The period from 1994-95 to
1996-97 was a bad phase. Nevertheless, the efforts taken in the last two years paid rich
dividends and contributed a lot to bring back the company on the right track. Thanks to
its CEO. The mandate before the company was very clear. To address issues like the
ever-increasing social costs incurred by the company. The Voluntary Retirement Scheme was
a runaway success with around 7,450 employees taking it in the last two years. The
company’s performance this year aptly reflects the corrective as well as
restructuring measures successfully taken by it. Needless to say, re-structuring happened
in the mindset of the employees through injecting competitive professionalism.
Much of its success has been
attributed to its restructuring strategy. In the highly competitive markets, ITI has
emerged as a clear winner in the open bids by re-orienting its working culture. By
restructuring operations, updating facilities, adopting leading edge technologies,
re-engineering processes for reduced cycle time and innovative fiscal measures for
reducing costs and overheads, and re-vitalizing R&D for new technologies and products.
During the year, all the manufacturing plants registered an all-time high production with
switching capacity exceeding by 20 percent.
While setting an internal target
of Rs 1,800 crore for the year 1998-99, the company is determined to further sharpen its
competitive edge by improving productivity and maintaining consistency in production.
Though orders from DoT constitute
a major chunk of ITI’s business, the company is planning to garner sizeable non-DoT
business in the current fiscal by meeting the emerging communication requirements of major
sectors like Defence and the Railways. The postal department, ONGC, and the power grids.
It will also focus on annual maintenance contracts as well. Several new products are
slated to be launched this year following the successful introduction of six new
technologies such as MAX-XL, SNPS, optical SDH and PDH, and digital microwave. The company
is to provide the latest solutions in all the areas of telecom like switching,
transmission, subscriber premises equipment, fibre-optic system, WILL, and other access
products, application-oriented software, Network Management System (NMS) in customized
networks, satellite communications, besides providing Integrated Logistic Support (ILS) to
its customers.
ITI is also eyeing the export
markets of developing countries in South-East Asia, Africa, and Latin America. It has
exported products like ADPCM, rural exchanges, telephone of different types, and space
cards for E10B exchanges. An export earning of Rs 20 crore is expected this year.
ITI’s long-term plan for
total re-vitalization of company is to restructure and re-engineer its business processes
using core competency with strategic alliances. ITI is gearing itself up to meet the
challenges of the next millennium by its game-plan of touching Rs 3,200 crore by 2001-02. |