A REPORT ON ORGANIZATION STUDY AT ITI LTD PALAKKAD

Submitted to

MAHATMA GANDHI UNIVERSITY,KOTTAYAM

In partial Fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (2018 – 2020)

Submitted by

SILPA K

Register No: 121854

SCHOOL OF MANAGEMENT AND BUSINESS STUDIES MAHATMA

GANDHI UNIVERSITY PRIYADARSHINI HILLS P. O KOTTAYAM,
KERALA - 686560
 SCHOOL OF MANAGEMENT AND BUSINESS STUDIES

Mahatma Gandhi University, Priyadarshini Hills P.O Kottayam, Kerala

CERTIFICATE

This is to certify that this work entitled “A Report on Organizational Study at ITI LTD PALAKKAD is
an authentic work done by SILPA K in partial fulfilment of the requirements for the award of the Degree of
Master of Business Administration of Mahatma Gandhi University, Kottayam, and Kerala Under our
supervision and guidance. It is also certified that this report has not been submitted to any other
institute/University for the award of any Degree/Diploma.

Prof. Dr. E SULAIMAN DR. E. SULAIMAN

Academic Guide, SMBS Head of the department

 DECLARATION

I SILPA K 2 nd semester MBA student of School of Management and Business Studies MG University
Campus, Kottayam, hereby declare that this report on The ITI LTD PALAKKAD, in partial fulfillment of
the requirement for the award of the degree of Master of Business Administration is a confide study done by
me. I also declare that this report has not been previously formed the basis of award of any Degree, Diploma,
Associate ship, Fellowship or any other similar title of this or any other university or institution.

Place: Kottayam SILPA K

Date
 ACKNOWLEDGEMENT

Foremost, I am grateful to god for extending my hands towards me for the successful completion of this
project. His grace and mercy has brought me thus far and I am grateful. I would like to thankful to Dr. E.
SULAIMAN, Head of the Department for his encouragement and guidance given for the progress of the
report. I owe my sincere gratitude to DR. E SULAIMAN for his continuous support, effort and
encouragement along with his knowledge and experience, enriched me to have a clear and practical
approach towards my work. I express my sincere thanks to Mrs. LAKSHMI ASSISTANT HR MANAGER
and the management and staff of ITI LTD PALAKKAD for their support and cooperation throughout the
tenure of the project and far giving me an in-depth knowledge on the various process of the organization.
Once again, I would like to offer my sincere thanks to all for their benevolent and expertise guidance without
which this project would not have seen the life today. I would also like to thank that entire person who
spent their valuable time to contribute the required information to me and give me support while conducting
this study

Place: SILPA K
Date:
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

1 INTRODUCTION
2 INDUSTRY PRIFILE
3 COMPANY PROFILE.
Organizational structure.
4 FUNCTIONAL
DEPARTMENTS
Planning Department.
Purchase Department.
Manufacturing Department.
Commercial Department.
Quality Assurance Department.

Store Department.
Marketing Department.
Finance Department.
3 Human Resource Department.
5 SWOT ANALYSIS
Strength.
Weakness.
Opportunity.
Threat.
6 FINDINGS,SUGGESTIONS
 AND CONCLUSION
7 REFERENCE
 CHAPTER 1
INTRODUCTION
INTRODUCTION
An Organization study was conducted at ITI limited, Palakkad. This organization was chosen because of
its well-known existence as it is the first public sector undertaking started by Government of India in 1948
and also because of its pioneering venture in the field of telecommunications. It has contributed to 50% of
the present national telecom network.

ITI Ltd Palakkad is one among the six manufacturing Plants of ITI Ltd., situated in Palakkad District of
Kerala, beside NH 544 leading to Coimbatore, established in 1976, primarily for catering to the manufacture
of Electronic Switching Products and Services. It is the Nation’s first Electronic Switching System
Manufacturing Unit, for large digital switches and trunk exchanges, in collaboration with Alcatel, France.
The Unit is accredited with ISO 9001: 2008 and ISO 14001: 2004, engaged in the manufacture of high tech
telecom equipment and also SIM Cards & Smart Cards. Most of the control switching equipment related to
the public network of BSNL/MTNL has been supplied by the Palakkad Plant. The unit has recently entered
the burgeoning service sector taking up projects like National Population Register (NPR -for Home Ministry,
Govt. of India), and Socio Economic Caste Census (SECC -for Ministry of Rural Development, Govt. of
India). Besides conventional manufacturing of electronic exchanges, the unit is now taking up turn key
projects like Managed Leased Line Network (MLLN), Stand-alone Signal Transfer Point (SSTP) and VOIP
Networks etc. A full-fledged Smart Card manufacturing center (with level 4 security) has been setup and the
unit has already supplied 35 million SIM cards and 2 million National Identity Cards. For the successful
implementation of these turn-key projects, ITI deploys resources on need basis, anywhere in India. The Plant
has a State-of-the-art Multi-layer PCB manufacturing plant (up-to 10 layers) as a separate business Centre
that caters to the captive as well as external market requirements. The Plant, having an annual capacity of
12000 sq. m. The PCB plant is approved by LCSO up to 10 layers. DRDO has cleared usage of PCBs,
manufactured at this plant. The operations of the Plant are all computerized and integrated with software
applications developed in-house by the IT group. The Integrated Manufacturing Management System
Software is a commercially deployable application that integrates the diverse manufacturing functions
including Material Management, Production Planning, Shop Floor Control, Billing, HR and Financials. The
Plant provides customized IT solutions in the areas of Networking, ERP& CRM. All the products
manufactured and deployed are provided with round the clock technical support and repair services by the
Customer Support Centre. The in-house developed CRM, a WEB based application package, is used for
rendering and monitoring the above services. Products supplied over two decades ago are also supported for
maintenance and repair services. An expert system is also developed to help provide better service to
Customers. Extension of services on emergency occasions such as earth quake in Bhuj, Fire in Chennai OCB
exchange, and support during Indian Peace Keeping Force Operation in Sri Lanka are some of the
milestones of this Group. The unit ventured in to the burgeoning eGovernance sector by taking up
government projects of national importance like National Population Register and Socio Economic Caste
Census. The entire operations of the Plant are computerized and integrated with in-house developed software
applications. The Integrated Manufacturing Management System Software is a commercially deployable
application that integrates the diverse plant functions including Materials Management, Production Planning,
Shop Floor Control, Billing, HR and Financials. The Plant provides customized IT solutions in the areas of
Networking, ERP& CRM. With a proven record of engineering strategic communication networks for
India's Defense Forces, the plant has also proven its mettle in developing superior telecommunication
products and solutions, in a highly secure environment.
PRODUCTS AND SERVICES
 OCB 283 Electronic Exchanges for BSNL/MTNL
 Turnkey projects-Managed Leased Line Network, Stand alone Signal Transfer Point
 Electronic Manufacturing Services o High Tech Multilayer PCB Manufacturing
 Cable Assemblies and Cable harnessing
 Development of Customized IT Solutions
 ERP and Web based CRM solutions
 24X7 Customer Support Centre

NEW PRODUCTS
 Fisherman ID cards and reader
 smart cards
 SMAASH PC
 Smart energy meters
 Next Generation Switches based on VoIP

INFRASTRUCTURE
 Manufacturing plant housed in 40 acres by the side of NH 544 easily accessed by Road, Rail and Air.
 Fully air conditioned 12500 Sq.M Manufacturing areas.
 State of the art Product independent Electronic Manufacturing Plant with latest SMT Lines, Generic
Testing facilities and process control equipments.
 PCB Plant with 12000 Sq.M. annual capacity
 Full-fledged Effluent treatment Plant
 Integrated Manufacturing Management System
 Local area network covering all functional areas
 Calibration facility for Test and Measuring Instruments

FACILITIES
 Printed Card Assembly lines
 Switching equipment assembly & testing
 Printed Circuit Board (PCB) Plant
 Smart Card Manufacturing Line o VSSC Flight Package Assemble

VISION AND MISSION

To re-establish leadership in manufacturing and supply of telecommunication equipment and also to

retain the status of top turnkey solution provider

MOTTO

Their motto is professional excellence

 CUSTOMERS:

Indian Customer Profile:

Department of Telecommunications (Dot) Government of India BSNL Mahanagar
Telephone Nigam defense services Paramilitary Police internal Security Organizations
Power, Steel and Oil sectors Railways Post offices Factories Offices, Bank,
Corporate Hotels, State and Central Government Organizations.

Global Customers Profile:

Afghanistan, Botswana, Bhutan, Comoros, Gambia, Ireland, Madagascar, Malaysia, Nepal, Rwanda,
Sri Lanka, Sudan, Switzerland, Uganda, Vietnam, Yemen, Zimbabwe.

Organization study helps a management student to acquire knowledge and skills require making a
major contribution to the challenges of industrial and commercial management.

The nation’s prosperity depends upon industrial and commercial business, so now a day’s greater emphasis
is given on Industrial education.
An organizational study encompasses the study of organizations from multiple viewpoints, methods & level
of analysis. An organization study involves the study of the structure and functioning of its development,
organizing or organization is one of the important function of the management. Generally all the
organizations are different but they have certain common features, they are group of people linked together
by formal & informal relationship , in hierarchical order that are engaged in co-operative activities &
everyone has identical boundaries so the study of people in organization is the important for future manager.
Whenever people interact in organizations, many factors come into play. Modern organizational studies
difficult to understand and made these factors like all modernist social sciences , organizational studies seek
to control , predict and explain. It is vital to study the structure and functioning of successful organization so
they will guide diventional towards successful and profitable functioning. The swift changes in the field of
science and technology was revolutionized the organizational system, such changes have become inevitable
to achieve the basic objective of the firm.
Objectives of the study:
 To know about the company functions and performances. The functions of PCB and its
performances and how it is made.
 To know about the methods of production.
 To know about the importance of quality policies measures to be followed.
Primary sources of data;
Direct personal interview with manager of concerned department, detailed interview with department heads
and other lower level workers in the company.
Secondary sources:

 Official records.
 Annual records.
 Organizational manuals.
 Website of the company

Scope of the organizational study:

The main scope of the study is the industrial exposure. The production process and the functioning of the
different departments are also of the great help to acquire knowledge about the organizational atmospheres
and also to find out the importance of the concerned industry in the society. The operational aspects of the
organization along with the managerial aspects and their activities were gauged through interviewing the
respective staffs of the various departments of the organization. The companies functioning were measured
by analyzing data available from various sources. Therefore an attempt was made to study the profitability
value strength of the company through this period of study.

PESTAL analysis of ITI Palakkad

Political
The political scenario of the government and what are all the actions and decisions taken by them has a
great impact on the functioning of the plant. As the company is entirely controlled by the government, so the
decisions cannot be taken very easily. It is less feasible as the directors have to pass on the directions taken
by them to the government officials.

Economical
The economic condition of the company plays a vital role in the functioning of the organization as a
whole. Since India is a developing country, there is a lot of scope for the company to expand in terms of
infrastructure and to provide more employment opportunity to the people of the country. The government
hinder the company’s functioning in a major way from procuring of materials to shipping of finished goods.

Social
The social environment around the plant also affects its functioning in a major way. The company provides
training to the employees for a particular period of time. The wellbeing of the employees is a must, if the
wellbeing of the employees is not taken into consideration then it will be reflected on the attitude and
behavior of the employees as well. The company also provides products to the society which is acceptable
by them. If the plant does not do its social obligations or social welfare to the surrounding areas, the society
will have a negative opinion on the plant and develop a negative attitude towards it

Technological
In 1995 during liberalization, ITI was not able to keep up with the rapidly changing technology and needed
to adopt quickly, so they made ties with their technology partners ALCATEL from France, to get advanced
technology like switching equipments and adapt to the changing times.

Environmental
In terms of the environmental factors, the firm is quite cutting the edges. They have their own water
treatment plant to combat air pollution. They have included HEPA air filters to purify the air before
releasing it. The company is an environmental friendly and acts according to government regulations and
standards.

Legal
The terms of the legal aspect of the firm have some cases or issues regarding their tender as they tend to
default in delivery of the goods, lack the adequate time for credit period as well. There are instances where
the tenders tend to file the lawsuits against the company to get the payment from them. There are also court
cases regarding to revision of the pay scale.
 CHAPTER 2
INDUSTRY PROFILE
 INDIAN TELECOMMUNICATION INDUSTRY:
The Indian telecommunication industry with about 1019 million mobile phone connections
as of 2016.The ITI is the fastest growing in the world and is projected that India will have a billion plus
mobile users by 2018.Projection by several leading global consultancies are that India’s wireless
telecommunication network will overtake China’s in the next 2 years.

India's telecommunication network is the second largest in the world based on the total number of telephone
users (both fixed and mobile phone).It has one of the lowest call tariffs in the world enabled by the mega
telephone networks and hyper-competition among them. It has the world's third-largest Internet user-base.
According to the Department of Telecommunication of India (DoT), as on March 2015, India has 302.35
million internet connections. Major sectors of the Indian telecommunication industry are telephony, internet
and television broadcast Industry in the country which is in an ongoing process of transforming into next
generation network, employs an extensive system of modern network elements such as digital telephone
exchanges, mobile switching centres, media gateways and signaling gateways at the core, interconnected by
a wide variety of transmission systems using fibre-optics or Microwave radio relay networks. The access
network, which connects the subscriber to the core, is highly diversified with different copper-pair, optic-
fibre and wireless technologies. DTH, a relatively new broadcasting technology has attained significant
popularity in the Television segment. The introduction of private FM has given a fillip to the radio
broadcasting in India. Telecommunication in India has greatly been supported by the INSAT system of the
country, one of the largest domestic satellite systems in the world. India possesses a diversified
communications system, which links all parts of the country by telephone, Internet, radio, television and
satellite.

Indian telecom industry underwent a high pace of market liberalization and growth since the 1990s and now
has become the world's most competitive and one of the fastest growing telecom markets. The Industry has
grown over twenty times in just ten years, from under 37 million subscribers in the year 2001 to over 846
million subscribers in the year 2011. India has the world's second-largest mobile phone user base with over
929.37 million users as of May 2012.It has the world's second-largest Internet user-base with over 300
million as of June 2015.

The total revenue of the Indian telecom sector grew by 7% to ₹2,832 billion (US$42 billion) for 2010–11
financial year, while revenues from telecom equipment segment stood at ₹1,170 billion (US$17 billion).

Telecommunication has supported the socioeconomic development of India and has played a significant role
to narrow down the rural-urban digital divide to some extent. It also has helped to increase the transparency
of governance with the introduction of e-governance in India. The government has pragmatically used
modern telecommunication facilities to deliver mass education programmes for the rural folk of India.
History:
The history of Indian telecom started with the introduction of Telegraph. The Indian postal and telecom
sectors are one of the oldest. . In 1850, the first experimental electric telegraph line was started
between Calcutta and Diamond Harbour. In 1851, it was opened for the use of the British East India
Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department, at
that time.

The construction of 4,000 miles (6,400 km) of telegraph lines was started in November 1853. These
connected Kolkata (then Calcutta) and Peshawar in the north; Agra, Mumbai (then Bombay) through Sindwa
Ghats, and Chennai (then Madras) in the south; Ootacamundand Bangalore. William O'Shaughnessy, who
pioneered the telegraph and telephone in India, belonged to the Public Works Department, and worked
towards the development of telecom throughout this period. A separate department was opened in 1854
when telegraph facilities were opened to the public.

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian
Telephone Company Ltd. approached the Government of India to establish telephone exchange in India. The
permission was refused on the grounds that the establishment of telephones was a Government monopoly
and that the Government itself would undertake the work. In 1881, the Government later reversed its earlier
decision and a license was granted to the Oriental Telephone Company Limited of England for opening
telephone exchanges at Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone service
was established in the country. On 28 January 1882, Major E. Baring, Member of the Governor General of
India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in
Calcutta named the "Central Exchange" had a total of 93 subscribers in its early stage. Later that year,
Bombay also witnessed the opening of a telephone exchange.

Further developments and milestones:

 Pre-1902 – Cable telegraph

 1902 – First wireless telegraph station established between Sagar Island and Sandhead.
 1907 – First Central Battery of telephones introduced in Kanpur.
 1913–1914 – First Automatic Exchange installed in Shimla.
 1927 – Radio-telegraph system between the UK and India, with Imperial Wireless Chain beam
stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by exchanging greetings
with King George V.
 1933 – Radiotelephone system inaugurated between the UK and India.
 1953 – 12 channel carrier system introduced.
 1960 – First subscriber trunk dialing route commissioned between Lucknow and Kanpur.
  1975 – First PCM system commissioned between Mumbai City and Andheri telephone
exchanges.
 1976 – First digital microwave junction.
 1979 – First optical fibre system for local junction commissioned at Pune.
 1980 – First satellite earth station for domestic communications established
at Sekandarabad, U.P..
 1983 – First analogue Stored Programme Control exchange for trunk lines commissioned at
Mumbai.
 1984 – C-DOT established for indigenous development and production of digital exchanges.
 1995 – First mobile telephone service started on non-commercial basis on 15 August 1995
in Delhi.
 1995 – Internet Introduced in India starting with Laxmi Nagar, Delhi 15 August 1995

Development of Broadcasting: Radio broadcasting was initiated in 1927 but became state responsibility only in 1930. In
1937 it was given the name All India Radio and since 1957 it has been called Akashvani. Limited duration of television
programming began in 1959, and complete broadcasting followed in 1965. The Ministry of Information and
Broadcasting owned and maintained the audio-visual apparatus—including the television channel Doordarshan—in the
country prior to the economic reforms of 1991. In 1997, an autonomous body was established in the name of Prasar
Bharti to take care of the public service broadcasting under the Prasar Bharti Act. All India Radio and Doordarshan, which
earlier were working as media units under the Ministry of I&B became constituents of the body.

Pre-liberalization statistics: While all the major cities and towns in the country were linked with telephones
during the British period, the total number of telephones in 1948 numbered only around 80,000. Post
independence, growth remained slow because the telephone was seen more as a status symbol rather than
being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in
1981 and 5.07 million in 1991, the year economic reforms were initiated in the country.

Liberalization and privatization

Liberalization of Indian telecommunication in industry started in 1981 when Prime Minister Indira
Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI),
in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political
opposition. Attempts to liberalize the telecommunication industry were continued by the following
government under the prime-minister-ship of Rajiv Gandhi. He invited Sam Pitroda, a US-based Non-
resident Indian NRI and a former Rockwell International executive to set up a Centre for Development of
Telematics (C-DOT) which manufactured electronic telephone exchanges in India for the first time. Sam
Pitroda had a significant role as a consultant and adviser in the development of telecommunication in India.
In 1985, the Department of Telecom(DoT) was separated from Indian Post & Telecommunication
Department. DoT was responsible for telecom services in entire country until 1986 when Mahanagar
Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were carved out of DoT to
run the telecom services of metro cities(Delhi and Mumbai) and international long distance operations
respectively.

The demand for telephones was ever increasing and in the 1990s Indian government was under increasing
pressure to open up the telecom sector for private investment as a part of Liberalisation-Privatisation-
Globalisation policies that the government had to accept to overcome the severe fiscal crisis and
resultant balance of payments issue in 1991. Consequently, private investment in the sector of Value Added
Services (VAS) was allowed and cellular telecom sector were opened up for competition from private
investments. It was during this period that the Narsimha Rao-led government introduced the National
Telecommunications policy (NTP) in 1994 which brought changes in the following areas: ownership,
service and regulation of telecommunications infrastructure. The policy introduced the concept
of telecommunication for all and its vision was to expand the telecommunication facilities to all the villages
in India. Liberalization in the basic telecom sector was also envisaged in this policy. They were also
successful in establishing joint ventures between state owned telecom companies and international players.
Foreign firms were eligible to 49% of the total stake. The multi-nationals were just involved in technology
transfer, and not policy making.

During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance
services to release the monopoly of the state owned DoT and VSNL and to enable competition in the long
distance carrier business which would help reduce tariff's and better the economy of the country. The Rao
run government instead liberalized the local services, taking the opposite political parties into confidence
and assuring foreign involvement in the long distance business after 5 years. The country was divided into
20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were
divided into category A, B and C depending on the value of the revenue in each circle. The government
threw open the bids to one private company per circle along with government owned DoT per circle. For
cellular service two service providers were allowed per circle and a 15 years license was given to each
provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL,
VSNL and other labour unions, but they managed to keep away from all the hurdles.

In 1997, the government set up TRAI (Telecom Regulatory Authority of India) which reduced the
interference of Government in deciding tariffs and policy making. The political powers changed in 1999 and
the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced
better liberalization policies. In 2000, the Vajpayee government constituted the Telecom Disputes Settlement
and Appellate Tribunal (TDSAT) through an amendment of the TRAI Act, 1997.The primary objective of
TDSAT's establishment was to release TRAI from adjudicatory and dispute settlement functions in order to
strengthen the regulatory framework. Any dispute involving parties like licensor, licensee, service provider
and consumers are resolved by TDSAT. Moreover, any direction, order or decision of TRAI can be
challenged by appealing in TDSAT. The government corporatized the operations wing of DoT on 1 October
2000 and named it as Department of Telecommunication Services (DTS) which was later named as Bharat
Sanchar Nigam Limited (BSNL). The proposal of raising the stake of foreign investors from 49% to 74%
was rejected by the opposite political parties and leftist thinkers. Domestic business groups wanted the
government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to
26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL.

This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March
2000, the government became more liberal in making policies and issuing licenses to private operators. The
government further reduced license fees for cellular service providers and increased the allowable stake to
74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs
were cut greatly enabling every common middle-class family in India to afford a cell phone. Nearly 32
million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile
market. Many private operators, such as Reliance Communications, Jio, Tata Indicom, Vodafone, Loop
Mobile, Airtel, Idea etc., successfully entered the high potential Indian telecom market.

In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which
represented a nearly 50% growth when compared with previous year.[31] As the unbranded Chinese cell
phones which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security
risk to the country, Mobile network operators therefore suspended the usage of around 30 million mobile
phones (about 8% of all mobiles in the country) by 30 April. Phones without valid IMEI cannot be
connected to cellular operators. 5–6 years the average monthly subscribers additions were around 0.05 to 0.1
million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a
number of proactive initiatives taken by regulators and licensors, the total number of mobile subscribers has
increased rapidly to over 929 million subscribers as of May 2012.

How telecommunication started in India?

History of Indian Telecommunications has its roots in the dawn of the independence era. India gained
independence in 1947, when India had around 84,000 telephone lines for its population of 350 million. After
thirty-three years later, by 1980, India's telephone service increased with only 2.5 million telephones and
12,000 public phones for a population of 700 million. Only 3 percent of India's 600,000 villages enjoyed
telephone service. However, in the late 1990s, a vast change was seen in the telecommunications scenario.
By 1999, India had an installed network of more than 25 million telephone lines that spread across 300
cities, 4869 towns, and 310,897 villages, making India's telecommunications network the ninth largest in the
world. Especially notable is the fact that more than 80 percent of this national telecommunications
infrastructure, counting up to approximately 20 million telephone lines, was added in the 1990s alone.

Telecommunications services, in true sense, began in India in 1851 when a telegraph service became
operational between Kolkata, then the seat of the British colonial government, and Diamond Harbor 21 miles
away, a trading post of the British East India Company. The telegraph, and later the telephone were
introduced in India in 1882 and were viewed by the British as tools of command and control that were
essential to maintain law and order in the country. For example, India's attempt at challenging British rule in
1857, referred to as the "Sepoy Mutiny," was covered up through the use of telegraph lines connecting the
British rulers in India and their armies. In 1883, the British combined the telegraph services with postal
services to further increase their command and control in India. Runners, stationed at telegraph offices,
carried telegrams to remote post offices, thereby linking the British rulers with even the most distant pockets
of India. After gaining independence from Britain in" 1947, the national government continued the colonial
legacy, organizing post and telegraph services exclusively in the domain of the state. Jawaharlal Nehru's
post-independence socialist policies dedicated India to state-run, state-owned monopolies in various sectors,
including Indian telecommunication as well. Managed by slow-moving, overstaffed government machinery
under the aegis of the Ministry of Posts and Telegraphs, the performance of India's telecommunications
sector was slow until the mid-1980s.
The main reasons for this poor performance included an official view that telephones were a "luxury" rather
than a "necessity". The main reasons for this poor performance were stated by an official record, saying that
people still believed telephones to be a "luxury" rather than a "necessity". Moreover, the dominance of the
state-run telecommunications with no competitive pressures for originality in telecommunications products,
services, and their pricing; the processes of the government telecommunications operations, pressure of the
shareholders for effectiveness; profitability; sales growth; market capitalization and many more accounted
for the reason of slow development. However, a bureaucratic, top-down telecommunications organization
without delegation, initiative, or accountability, and an overcrowded structure of tens of thousands of
telecommunications employees with inadequate job challenges or training also contributed as reasons for
slow development of Indian Telecommunication sectors. In India, the Ministry of Posts and Telegraphs
focused on improving the delivery of telegrams and telexes while other countries were embracing digital
telephony and facsimile machines. India missed the opportunity of bypassing old-fashioned technologies. In
1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian
Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India.
The permission was refused on the grounds that the founding of telephones was a Government monopoly
and that the Government itself would commence the work. By 1881, the Government changed its earlier
decision and eventually a license was granted to the Oriental Telephone Company Limited of England for
opening telephone exchanges at Kolkata, Mumbai, Chennai (Madras) and Ahmadabad. January 28, 1882, is
a Red Letter Day in the history of Indian Telecommunications. On this day Major E. Baring, Member of the
Governor General of India's Council confirmed the opening of Telephone Exchange in Kolkata, Chennai and
Mumbai. The exchange at Kolkata named "Central Exchange" was opened at third floor of the building at 7,
Council House Street. The Central Telephone Exchange carried 93 subscribers. Bombay (now Mumbai) also
witnessed the opening of Telephone Exchange in 1882. The statistics in the history of Indian
telecommunications show that there has been a mammoth revolution in this sector of India. Between 1988
and 1998, the number of villages with some kind of telephone facility increased from around 27,316 to
300,000 villages. By 2000, around 650,000 public call offices provided reliable telephone service, where
people could simply walk in, make a call, and pay the metered charges, had mushroomed all over India,
including the remote, rural, hilly, and tribal areas as well. The emergence of PCOs satisfied the strong Indian
socio-cultural need of keeping in touch with family members. Much like train travel in India which is often
undertaken to celebrate marriages, visit relatives, or attend funerals, the telephone is also viewed as a way of
maintaining close family ties. Thus, looking into these requirements, most advertisements for telephony
services feature mothers talking to their sons and daughters, or grandparents talking to grandchildren.
Telephone expansion in India thus serves a strong socio-cultural function for its users, in addition to a
commercial one. A stunning 117 billion metered calls were made in India from these PCOs in 1998.
Revenues of the Department of Telecommunications (Dot), the state-run telecommunications operator,
increased from $790 million in 1988 to $4.3 billion in 1998, simply a five-fold increase in 10 years. Over the
next several years, India planned to add four to five million digital telephone lines to increase its telephone
density from 2.5 per 100 people in 1999, to 7 per 100 people by 2005, and to 15 by 2010. So, by 2005, the
number of telephones in India will rise to 75 million; projections for 2010 are pegged at 150 million.
Massive investments running into billions of dollars (installing each telephone line costs about $750) were
needed for this expansion, so private sector involvement intensified. Mobile telephony represented one
telecommunications sector where private sector involvement is particularly important.Indian
Telecommunications portrays the real sense of transferring the information between two distant points in
space. Thus, the history of Indian telecom can be started with the introduction of telegraph and still ongoing
with the present status of effective mobile phones available all over the country.

The significant dates in the history of Indian Telecommunications are as follows -

 1902 - First wireless telegraph station was established between Saugor Islands and Sandheads.
 1907 - First Central Battery of telephones was introduced in Kanpur.
 1913-1914 - First Automatic Exchange was installed in Shimla.
 July 23, 1927 - Radiotelegraph system was established between the UK and India, with important
stations at Khadki and Daund, which were inaugurated by Lord Irwin by exchanging greetings with
the King of England.
 1933 - Radiotelephone system was inaugurated between the UK and India.
 1953 - A 12 channel carrier system was introduced in the nation.
  1960 - First subscriber trunk dialing route was commissioned between Kanpur and Lucknow.
 1975 - First PCM system was commissioned between Mumbai City and Andheri telephone
exchanges.
 1976 - First digital microwave junction was introduced.
 1979 - First optical fibre system for local junction was commissioned at Pune.
 1980 - First satellite earth station for domestic communications was established at Secunderabad.
 1983 - First analog Stored Program Control exchange for trunk lines was commissioned at Mumbai.
 1984 - C-DOT was established for indigenous development and production of digital exchanges.
 1985 - First mobile telephone service started on non-commercial basis in Delhi.
 Wireless Communication.

Internet
The history of the Internet in India started with launch of services by VSNL on 15 August 1995. They were
able to add about 10,000 Internet users within 6 months. However, for the next 10 years the Internet
experience in the country remained less attractive with narrow-band connections having speeds less than 56
kbit/s (dial-up). In 2004, the government formulated its broadband policy which defined broadband as "an
always-on Internet connection with download speed of 256 kbit /s or above From 2005 onward the growth of
the broadband sector in the country accelerated, but remained below the growth estimates of the government
and related agencies due to resource issues in last-mile access which were predominantly wired-line
technologies. This bottleneck was removed in 2010 when the government auctioned 3G spectrum followed
by an equally high profile auction of 4G spectrum that set the scene for a competitive and invigorated
wireless broadband market. Now Internet access in India is provided by both public and private companies
using a variety of technologies and media including dial-up (PSTN), xDSL, coaxial cable, Ethernet, FTTH,
ISDN, HSDPA (3G), WiFi, WiMAX, etc. at a wide range of speeds and costs. As per IAMAI India will have
the world's second largest number of Internet users with over 300 million by December 2014.

According to the Internet And Mobile Association of India (IAMAI), the Internet user base in the country
stood at 190 million at the end of June, 2013. As of October, 2013 report, it is over 205 million. The number
of broadband subscribers at the end of May 2013 was 15.19 million.] Cumulative Annual Growth rate
(CAGR) of broadband during the five-year period between 2005 and 2010 was about 117 per cent. DSL,
while holding slightly more than 75% of the local broadband market, was steadily losing market share to
other non-DSL broadband platforms, especially to wireless broadband.

There were 161 Internet Service Providers (ISPs) offering broadband services in India as of 31 May 2013.
The top five ISPs in terms subscriber base were BSNL (9.96 million), Bharti Airtel (1.40 million), MTNL
(1.09 million), Hathway (0.36 million) and You Broadband (0.31 million). Cyber cafes remain the major
source of Internet access. In 2009, about 37 per cent of the users access the Internet from cyber cafes, 30 per
cent from an office, and 23 per cent from home. However, the number of mobile Internet users increased
rapidly from 2009 on and there were about 274 million mobile users at the end of September 2010, with a
majority using 2G mobile networks. Mobile Internet subscriptions as reported by the Telecom Regulatory
Authority of India (TRAI) in March 2011 increased to 381 million.

One of the major issues facing the Internet segment in India is the lower average bandwidth of broadband
connections compared to that of developed countries. According to 2007 statistics, the average download
speed in India hovered at about 40 KB per second (256 kbit/s), the minimum speed set by TRAI, whereas the
international average was 5.6 Mbit/s during the same period. In order to attend this infrastructure issue the
government declared 2007 as "the year of broadband". To compete with international standards of defining
broadband speed the Indian Government has taken the aggressive step of proposing a $13 billion national
broadband network to connect all cities, towns and villages with a population of more than 500 in two
phases targeted for completion by 2012 and 2013. The network was supposed to provide speeds up to 10
Mbit/s in 63 metropolitan areas and 4 Mbit/s in an additional 352 cities. Also, the Internet penetration rate in
India is one of the lowest in the world and only accounts for 8.4% of the population compared to the rate
in OECD counties, where the average is over 50%. Another issue is the digital divide where growth is biased
in favour of urban areas; according to 2010 statistics, more than 75 per cent of the broadband connections in
the country are in the top 30 cities. Regulators have tried to boost the growth of broadband in rural areas by
promoting higher investment in rural infrastructure and establishing subsidized tariffs for rural subscribers
under the Universal service obligation scheme of the Indian government.

As of May 2014, the Internet was delivered to India mainly by 9 different undersea fibres, including SEA-
ME-WE 3, Bay of Bengal Gateway and Europe India Gateway, arriving at 5 different landing points.

Network neutrality

As of 2015, India had no laws governing net neutrality and there have been violations of net neutrality
principles by some service providers. While the Telecom Regulatory Authority of India (TRAI) guidelines
for the Unified Access Service license promote net neutrality, they are not enforced. The Information
Technology Act, 2000 does not prohibit companies from throttling their service in accordance with their
business interests.

In March 2015, the TRAI released a formal consultation paper on Regulatory Framework for Over-the-top
(OTT) services, seeking comments from the public. The consultation paper was criticized for being one sided
and having confusing statements. It was condemned by various politicians and internet users. By 18 April
2015, over 800,000 emails had been sent to TRAI demanding net neutrality.

Ecommerce Industry in India statistics

No. of Indian consumers who purchased something online in 2014: 40 Million

No. of Indian consumers who are expected to purchase something online in 2015: 65 Million

Indian ecommerce Industry in 2014: $22 Billion

Indian ecommerce Industry in 2018: $86 Billion

Mobile Internet Users

No. of Internet users in India in 2016: 300 Million

Mobile Internet users in India now: 203 Million

Ecommerce sales through mobile phone in India in 2014: 41%

Wireless Internet

2nd Generation Internet is the most prevalent in India in the Past Decade. Wireless ISPs in India use
both CDMA and Edge technologies for 2G.

Data centers

 BSNL Internet Data Centers, in collaboration with Dimension Data

 Tri max IT Infrastructure & Services Limited - Tier III data centers in Mumbai and Bangaluru
 Air live Broadband
 Sify Technologies Limited
 CtrlS Datacenters Ltd
 Tata Communications Limited
 Net magic Solutions
 Reliance Datacenter
 Web Werks IDC
 Net4 Datacenter
 Rack Bank Datacenter
 GPX Global Systems Inc.
 CTRLS Data Center
 Mega Host Zone

Next-generation networks (NGN)

Historically, the role of telecommunication has evolved from that of plain information exchange to a multi-
service field, with Value Added Services (VAS) integrated with various discrete networks
like PSTN, PLMN, Internet Backbone etc. However, with decreasing ARPU and increasing demand for
VAS has become a compelling reason for the service providers to think of the convergence of these parallel
networks into a single core network with service layers separated from network layer. Next-generation
networking is such a convergence concept which according to ITU-T is:
A next-generation network (NGN) is a packet-based network which can provide services including
Telecommunication Services and able to make use of multiple broadband, quality of Service-enabled
transport technologies and in which service-related functions are independent from underlying transport-
related technologies. It offers unrestricted access by users to different service providers. It supports
generalized mobility which will allow consistent and ubiquitous provision of services to users.

Access network: The user can connect to the IP-core of NGN in various ways, most of which use the
standard Internet Protocol (IP). User terminals such as mobile phones, personal digital assistants (PDAs) and
computers can register directly on NGN-core, even when they are roaming in another network or country.
The only requirement is that they can use IP and Session Initiation Protocol (SIP). Fixed access (e.g., Digital
Subscriber Line (DSL), cable modems, Ethernet), mobile access (e.g. W-CDMA, CDMA2000, GSM,GPRS)
and wireless access (e.g. WLAN, WiMAX) are all supported. Other phone systems like plain old telephone
service and non-compatible VoIP systems, are supported through gateways. With the deployment of the
NGN, users may subscribe to many simultaneous access-providers providing telephony, internet or
entertainment services. This may provide end-users with virtually unlimited options to choose between
service providers for these services in NGN environment.

The hyper-competition in telecom market, which was effectively caused by the introduction of Universal
Access Service (UAS) license in 2003 became much tougher after 3G and 4G competitive auction. About
670,000 route-kilometer (419,000-mile) of optical fibres has been laid in India by the major operators,
including in the financially nonviable rural areas and the process continues. Keeping in mind the viability of
providing services in rural areas, the government of India also took a proactive role to promote the NGN
implementation in the country; an expert committee called NGN eCO was constituted in order to deliberate
on the licensing, interconnection and Quality of Service (QoS) issues related to NGN and it submitted its
report on 24 August 2007. Telecom operators found the NGN model advantageous, but huge investment
requirements have prompted them to adopt a multi-phase migration and they have already started the
migration process to NGN with the implementation of IP-based core-network.

Regulatory environment

LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders'

perception on certain TRE dimensions, provides insight into how conducive the environment is for further
development and progress. The most recent survey was conducted in July 2008 in eight Asian countries,
including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The
tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff
regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed,
mobile and broadband sectors.
The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for
the mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the
fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff
Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most
of the circles with 4–5 mobile service providers. The broadband sector has the lowest score in the aggregate.
The low penetration of broadband of mere 3.87 against the policy objective of 9 million at then end of 2007
clearly indicates that the regulatory environment is not very conducive.

In 2013 the home ministry stated that legislation must ensure that law enforcement agencies are empowered
to intercept communications.

Revenue and growth:

The total revenue in the telecom service sector was ₹867.2 billion (US$12.9 billion) in 2005–06 as
against ₹716.74 billion (US$10.7 billion) in 2004–2005, registering a growth of 21% with estimated revenue
of FY'2011 of ₹8.35 billion (US$120 million). The total investment in the telecom services sector
reached ₹2,006 billion (US$29.8 billion) in 2005–06, up from ₹1,788 billion (US$26.6 billion) in the
previous fiscal. Telecommunication is the lifeline of the rapidly growing Information Technology industry.
Internet subscriber base has risen to more than a 121 million in 2011. Out of this 11.47 million were
broadband connections. More than a billion people use the Internet globally. Under the Bharat Nirman
Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not
yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been
raised about what it would mean for the poor in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the
opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005
up from 2.3 million in December 2004.

The Total Revenue of Indian Telecom Services company is likely to exceed ₹2,000 billion (US$30 billion) (
US$44 Bn approx) for FY 11–12 based on FY 10–11 nos and latest quarterly results. These are consolidated
numbers including foreign operation of Bharti Airtel. The major contributions to this revenue are as follows:

International

 Nine satellite earth stations – 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean region).Microwave
 Nine gate way exchanges operating from Mumbai,
NewDelhi, Kolkata, Chennai, Jalandhar, Kanpur, Gandhinagar, Hyderabad and Ernakulam.

Submarine cables

 LOCOM linking Chennai to Penang, Malaysia

 India-UAE cable linking Mumbai to Al Fujayrah, UAE.
 SEA-ME-WE 2 (South East Asia-Middle East-Western Europe 2)
 SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) – Landing sites
at Cochin and Mumbai. Capacity of 960 Gbit/s.
 SEA-ME-WE 4 (South East Asia-Middle East-Western Europe 4) – Landing sites
at Mumbai and Chennai. Capacity of 1.28 Tbit/s.
 Fibre-Optic Link Around the Globe (FLAG-FEA) with a landing site at Mumbai (2000). Initial design
capacity 10 Gbit/s, upgraded in 2002 to 80 Gbit/s, upgraded to over 1 Tbit/s (2005).
 TIISCS (Tata Indicom India-Singapore Cable System), also known as TIC (Tata Indicom Cable),
Chennai to Singapore. Capacity of 5.12 Tbit/s.
 i2i – Chennai to Singapore. Capacity of 8.4 Tbit/s.
 SEACOM From Mumbai to the Mediterranean, via South Africa. It joins with SEA-ME-WE 4 off the
west coast of Spain to carry traffic onward to London (2009). Capacity of 1.28 Tbit/s.
 I-ME-WE (India-Middle East-Western Europe) with two landing sites at Mumbai (2009). Capacity of
3.84 Tbit/s.
 EIG (Europe-India Gateway), landing at Mumbai (due Q2 2010).
 MENA (Middle East North Africa).
 TGN-Eurasia (Announced) Landing at Mumbai (due 2010?), Capacity of 1.28 Tbit/s
 TGN-Gulf (Announced) Landing at Mumbai (due 2011?), Capacity Unknown.
 CHAPTER 3
COMPANY PROFILE
COMPANY PROFILE

India’s first Public Sector Union – ITI Ltd was established in 1948. Ever since as a pioneering venture in the
field of telecommunications, it has contributed to 50% of the present national telecom network. With state-
of-the-art manufacturing facilities spread across 6 locations and a countrywide network of
marketing/services outlets , the company offers a complete range of telecom products and total solutions
covering the whole spectrum of Switching , Transmission , Access and Subscriber Premises equipment.

ITI joined the league of world class vendors of Global System for Mobile (GSM) technology with the
inauguration of mobile equipment manufacturing facilities at its Mankapur and Rae Bareli Plants in 2005-06.
This ushered in a new era of indigenous mobile equipment production in the country. These two facilities
supply more than nine million lines per annum to both domestic as well as expert markets.

The company is consolidating its diversification into Information Communication Technology (ICT) to hone
its competitive edge in the convergence market by developing its rich telecom expertise and vast
infrastructure. Networking solutions for Internet Connectivity are some of the major initiatives taken by the
company.

Overview of the Company ITI:

More about ITI:

Multi locational state-of-the-art electronic assembly & component manufacturing facilities accredited with
ISO 9001-2000.

Multi locational ISO 14001-2001 EMS certified plants first Indian Company to manufacture BTS & other
infra products for GSM/WiMAX Countrywide marketing and customer care centres are available.

Resources: Dedicated Network System Unit (Bangalore, New Delhi , Kolkata , Bhopal , Ambala). State-of-
the-art manufacturing plants (Bangalore, Mankapur , Rae Bareli , Naini , Palakkad , Srinagar). R & D centre.

SMPS: Fabrication of 100 A – 150 A powerplants with 25 A base module for GSM. Fabrication of 200A –
3000A powerplants with 100A base modules for telecom installation.

Products: Cellular Mobile Infrastructure.GSM , WLL-CDMA Switching – OCB 283 , ISDN EPABX, IP-
TAX, SSTP.

Transmission- Satellite, Optical, Microwave, VHF/UHF.

Broadband equipment – ADSL, WiMAX, G-PON, EDW AS.

Customer Premises P- equipments – IFWT, ADSL Modem, CLI Phones. GSM-FCT, WiMAX CPE.

Services: Systems Integration – =Telecom, IT. Shared Hub V- SAT services, Customer Care Service
Installation & Commissioning of Telecom Equipments like GSM, CDMA, MLLN, Microwave, Optical
Fibre.
CONTRIBUTIONS:

HIGHLIGHT;

 Telecom pioneers in India.

 Contributed 50% to the existing national telecom network.

 High Impact turnkey specialist.

 An ISO 9000 company with state-of-the-art facilities for entire range of telecom equipments.

 Dependable Integrated Logistics Supports (ILS).

 Strong in- house R&D.

PRODUCTS:

 GSM – BTS, BTS Shelter, Roof Top Tower CDMA (code division multiple access).
 Switching: Large Switches, Medium Switches, Small Switches.
 Transmission: Microwave, Fibre Optics, Satellite.
 Access: Wireless in Local loop (WLLP), Digital Loop Carrier (DLCP), Paigrain.
 Terminal equipment: Telephones, ISDN Products, Vide Conferencing.
 Microelectronics: Applications Specific Integrated Circuits (ASICs).
 IT Products: Computer Technology Integration (CTI). ITI PC .
 Defense: Order wise secrecy, MIC PCM secrecy, Ananda MIC 2 BEU, SIM encryptor, BEU IP,
FAX Encryptor.
 Diversified Products: SMPS, Fake Note Detector, Digital Inverter, Currency Counting Machine.

TECHNICAL COLLABORATIONS:

In order to meet the emerging needs of the customers as well as to develop cutting edge capabilities
ITI Ltd has select strategic alliance with leading companies from around the world. Alacatel Lucent, France,
ZTE, China, Alphion, USA, Sem India, India, Huawei, China, Tekelec Inc, USA,Tejas Network India,
Xalted,India,Mobi,China,SAFTehnika,Latvia,WatchData,China,Tellabs,Finland,Vuppala,India,VNT,India,C
-DOT,Eltek/DACS.

CUSTOMERS:

Indian Customer Profile: Department of Telecommunications (Dot), Government of India, BSNL

Mahanagar Telephone Nigam, defense services, Paramilitary, Police internal, Security Organizations,
Power, Steel and Oil sectors, Railways, Post offices, Factories, Offices, Bank, Corporate Hotels, State and
Central Government Organizations.
Global Customers Profile: Afghanistan, Botswana, Bhutan, Comoros, Gambia, Ireland, Madagascar,
Malaysia, Nepal, Rwanda, SriLanka, Sudan, Switzerland, Uganda, Vietnam, Yemen, Zimbabwe.

Man Power:

ITI Palakkad:

PALAKKAD PLANT

ITI LIMITED, PALAKKAD was established in the year 1976, as the Nation’s first Electronic
Switching Systems Production Unit. The unit is situated in the Industrial corridors of Coimbatore and Kochi
(Kanjikode) in the NH-47 and only 10 kms from Palakkad Town.

The Unit went into production in 1976 with a merger overall investment of Rs.26 Lakhs for producing
10,500 lines of small electronic exchanges of 10 to 50 Lines capacity. In 1980, the Unit was expanded with
an investment of rs.98 lakhs, to produce 60,000 lines of medium size electronic exchanges of 200 lines
capacity. The product range at that stage included sophisticated microprocessor controlled Exchanges for
Civilian and Defense use and Subscriber Line Routiner used for maintaining the telephone lines.

In 1985, it was decided to establish manufacturing facilities for Digital Trunk Automatic Exchanges, with an
investment of Rs.67.57 Crores. The planned capacity manufacture 30,000 circuits of DTAX equipment,
50,000 lines of ILT and 50,000 lines of other exchanges totaling 1,60,000 line apart from PCB
manufacturing facilities. With some modifications within overall investment, facilities were established to
manufacture EIOB local exchanges also, thereby increasing the overall capacity to 2,60,000.

Quality system in the unit was audited and certified to ISO-9002 QMS Standard in Sept.’93. The unit has
emerged successful through the surveillance audits conducted by IRQS and was reassessed and certified as
per ISO-9002:1994 version in 1996 and in 1999. ISO 9001:2000 Edition Certification was awarded to ITI
Palakkad Unit during Sept.2002. The surveillance audit for QMS and the Certification audit for SMART
card were successfully completed during Sept.2003 and ISO 9001:2000 edition Certification were awarded
to ITI Palakkad unit for smart card manufacturing during this audit. ISO 9001:2000 Edition 2nd Surveillance
audit was successfully completed during September 2005 and subsequently Surveillance audit was
successfully completed during September 2006.

Environmental Management System in Palakkad unit was audited by IRQS and certified to ISO 14001:1996
Standard in January 2005 and upgraded to 14001:2004 Edition in April 2006. Subsequently Surveillance
audit was conducted successfully during February 2007. The unit is also engaged in the manufacture of OCB
283 switching system, in technical collaboration with ALCATEL-CIT. total production capacity of the unit
is 1 MILLION lines per annum.
Over these years, the unit has grown to become one of the World Class Manufacturing Plants. With the
state-of-the-art FUJI SMT Assembly Line, PCB Plant with a capacity of 10000 Sq.Meters of PCB’s per
annum.

Based on the consistent quality of the product and service, ITI Ltd , Palakkad is certified under Approved
Inspection Scheme for supplying OCB 283 Core equipment to BSNL/MTNL with effect from 23/06/1999.

ITI Palakkad Unit has entered into the new business areas if Information Technology. Company has
Introduced new products in order to exploit the business opportunities of IT SMART Card Manufacturing is
started in 2001 in Palakkad Unit in collaboration with Incard Italy and manufacturing of SMART cards in
collaboration with G&D Germany started from 2005:Recently:in July 2007, manufacturing of MSART cards
in collaboration with M/s watch Data started. The unit is gearing towards the Approved Inspection Scheme
for SIM Card assembly.

ITI Palakkad has started the production of Multinational ID Cards for RGI during March 2007. In order to
meet the emerging need of the customers as well as to develop cutting edge capabilities ITI has select
strategic alliance with leading companies from around the world. The strategic alliance with M/s Teklec inc.,
USA for SSTP and collaboration with M/s.tellabs, Finland are two backbone projects of ITI Palakkad.

Managed Leased Line Network is na integrated fully managed, multi-service digital network platform
through which service provider can offer wide range of services at an optimal cost of Business subscribers.
BSNL and MTNL are the two major customers. MLLN and its applications are beneficial to large sectors
like banking, financial institutions, Stock Markets, News Paper Industry Broadcasting houses and Internet
service providers etc.

PRODUCT RANGE:-

 Large Digital Switches and Digital Trunk Exchanges-OCB 283.

 Double Sided & Multi Layer Printed Circuit Boards (PCB).
 Assembly of state-of-the-art Surface Mound Devices (SMD).
 SIM Cards/Smart Cards/National ID Cards.
 New Management Systems (NMS)
 New Generation Network (NGN) Equipment.
 Voice over Internet Protocol VoIP Products.
 Managed Leased Line Networks(MLLN)
 Virtual Private Network (VPN)
 Stand-alone Signalling Transfer Point (SSTP) Equipment.
 VRLA Battery (80 AH to 2000 AH).
MANUFACTURING FACILITY:-

ITI Limited, Palakkad, has a highly productive plant equipped facilities for SMD assembly and automated
testing to ensure zero defect product and PCB manufacture of various layer counts. We also have state-of-
the-art SIM Card Manufacturing and Personalization Centre, Modern Calibration Lab, Cable Assembly and
harnessing Equipments, PC based Microprocessor Development Systems and the latest Test Equipments.
We are fully networked over a LAN with more than 200 nodes connecting all the department along with
VSAT connectivity with all the other manufacturing Plants.

TESTING & QA:-

The facility has highly sophisticated tools and programmes to test the functionality of the card, rack, cables,
and simulation activity based on the exact site installation layout. The Manufacturing Automation Protocol
(MAP) Test, Integration Test and Climatic Test ensure a failure rate less than 2 %. The facility has been
approved by BSNL with a Self Certification stature.

TURNKEY SOLUTIONS: SUPPLY, INSTALLATION & COMMISSIONING:

We have an exclusive Product Support Centre and Customer service ‘Welcome’ centre equipped with skilled
technical personal and the latest test equipments, to ensure 24x7 support services.

Highlights;

 SMD Technology, PCB Assembly.

 Installation, Commissioning & Technical support of exchanges.
 Nationwide Annual Maintenance Contract (AMC) for OCB.
 Complete turnkey implementation of Nationwide Managed Leased Line Network (MLLN) in
collaboration with Tellabs.
 AMC for all the new products.
 Installation and Commissioning of all the new solutions deployed like VoIP, MLLN,SSTP,IPTAX
etc.
 Equipment Calibration.

QUALITY POLICY:

ITI is committed to provide Competitive & Reliable Products, Solutions and Services.

ITI will achieve this through:

  Sound Quality management Systems.
 Empowered Human Resources.
 Innovation.

Continual improvement, Mutual Respect and Customer Delight will be our guiding philosophy

IMPORTANT MILESTONES OF THE PALAKKAD PLANT:-

Jan 1976 Inauguration of ITI Ltd, Palakkad by Dr. Shankar Dayal Sharma.

Nov 1982 Corner stone laid for phase-2 expansion by Sri.C.S.S Rao, CMD

Mar 1986 First batch of Switel Electronic Exchanges delivered to Indian Army.

Dec 1986 Corner stone laid for Phase-3 expansion

Jan 1987 The first E10B TAX (2K) delivered to Ernakulam

Oct 1987 A Telecommunication System designed by ITI for Neyveli Lignite Corporation

Oct 1988 First ILT manufactured at Palakkad delivered to Minicoy

Dec 1987 The PCB Plant inaugurated

Mar 1990 Approved inspection scheme(self certification) for DTAX

Sep 1993 ISO 9002 Accreditation(1987 version) by IRQS.

Mar 1995 First E10B Local Exchange (5KL) delivered to Golconda

Sep 1993 ISO 9002 Accreditation (1987 version) by IRQS.

Mar 1995 First OCB-283 exchange delivered.

Sep 1995 First OCB TAX Pune 18 KC manufactured delivered to DOT.

Oct 1996 ISO 9002 (1994 version) Accreditation by IRQS.

Oct 2003 ISO 9001 (2000 version) Accreditation by IRQS.

Jun 2004 Development of SIM OS for 16K.

Feb 2005 ISO 14001 Accreditation (EMS) by IRQS.

Aug 2005 Sri Y.K Pandey ,CMD ITI Limited launched Web based Customer Relationship
Management System for OCB AMC

PRODUCT PROFILE:

 Large Digital Switches and Digital Trunk Exchanges (OCB).

 Double Sided & Multi Layer Printed Circuit Board (PCB).
 Assembly of state-of-the-art Surface Mounted Device (SMD).
 SIM Cards/Smart cards/National ID Cards.
 New Generation Network (NGN) Equipment.
 Network Management System (NMS).
 Managed Leased Line Network (MLLN).
 Voice over Internet Protocol (VoIP).
 Virtual Private Network (VPN).
 Stand alone Signalling Transfer Point (SSTP) Equipment.
 Integrated Manufacturing system (IMMS) and other customized software solutions.
ORGANIZATIONAL STRUCTURE:
 AGM

DGM-
DGM-Pcs DGM-MM DGM(V) DGM-HR DGM-P DGM-QA DGM-IA DGM-AMC
CONTRACT

DGM-
MR-C C CMR-C OM CMR-AMC
PLG&MM

CMR-
CMR-PLNG CMR-CSC
AT&MEM

DGM-CC&P DGM-BD CMR-MKTG

MR-PLANT CMR-TECH CMR-MKTG

FINANCE
CMR-DC
OFFICER
 CHAPTER-4

FUNCTIONAL DEPARTMENTS
 PLANNING DEPARTMENT:

Planning is a very important section in the ITI. The activities coming under the planning scheduling
and control both for printed circuit board and exchanges resources management and MIS. In earlier days
planning was easier because planning was having monopoly in Indian telephone industry. But now the
whole scenario has changed and not is in a position to dictate and allows only a three months period for
delivery of products. But the lead times for many of the components are greater than three months and in
some cases up to 6 months. So the planning process has to be started even before getting the orders to
delivery in time. So the planning process starts with the input of marketing department.

The planning section prepares a master plan describing the monthly output required for each category f
products for the whole year. Based on this master plan production scheduling is done on a weekly basis with
target to be achieved during every week.

Computers helps in planning process to great extend and there are software’s for planning supplied by
ALCATEL called POSITEL. The bill of materials (BOM) are in built software and others files like
inventory files and Master Schedule are also present in the computer software which helps in production,
planning. For this EDI department has a main frame computer with terminal connections available in all
department and sections. Through LAN so that all relevant information are available to everyone who needs
it.

But in spite of the above facilities the production is not at all going as per the schedule. Even the production
is usually pending for weeks mainly due to the non availability of components in the store. The deficit
numbers of items are in the future of many hundreds for each product. The planning section accuses the
purchase section for this delay, which they well in advance. Also the planning section complaints that the
‘C’ class items are not given any importance by the purchase department whose deficiency also leads to a
built in production line. On the other side there are about 4000 to 5000 items in the inventory and naturally
procurement will be a difficult job if not done scientifically. Another problem faced in the procurement is
that some of the items are needed in less than number, but are sold in the international market at a minimum
lot size for the required quantity for ITI.ITI has yearly production plan starting from April-March approved
by the G.M. This yearly plan is split into monthly production schedule. As per this production schedule
planning department worked out. The monthly production schedule of ITI depends on the status/letter of
intent released by customer engineering department.

The monthly production schedule consisted of site name, the circle in which the site belongs, capacity of
site, work under number of each particular site and finally end of delivery (EOD) date. All transactions are
made against the work order only. The EOD is strictly followed otherwise ITI will have to pay late delivery
(LD). The monthly schedule was converted as chart which gives information about the requirement of each
site. Loading is taking place weekly. Before loading a material, availability check is prepared to check the
material position. Since they have the production plan in advance they can work out average requirement
with actual received. The availability check output consisted of simulation requirement, Fairsel requirement
shop stock details and stocks details, IGA no, with quantity, pending PR/PO quantity with supplies name.

Functions of planning department:

 Production plan is required.
 Production plan cleared and approved by G.M.
 Production plan divided into
 Monthly Schedule.
 Production Schedule.
 Monthly production schedule consists of customer number and date etc.
 Production schedule consists of serial number, circle etc.
 Code is entrusted and weekly scheduling is done.
 Physically verified ITI note is prepared and passed for inspection.
 Loading sheet is given production department.
 Gross list, drawal plan etc are prepared.
 Materials follow up.

PURCHASE DEPARTMENT:

The purchase department usually comes under with the IMM department. This section deals with the
purchase of materials needed for the production and they are classified as

 Production items.
 Non – production items.
 Capital item.

The planning department gives a Purchase Requisition (PR) to the purchase department mentioning the
number, specification etc……….. of items required. The purchase department then calls for the quotations
from pre-approved vendors with due date. The vendors are identified by the vendors development call
(VDC).

The tender received will be both in open and in sealed form, once the tenders are received. These are
forwarded to planning department for technical clearance. If rejected it will go to VDC for follow up. IF the
tenders are accepted, the purchase department goes for the tabulation in order to finding out the lowest
bidder L1. A purchase enquiry (PE) is raised and the L1 vendor is asked to produce some samples. Some
vendors won’t accept orders if the required number of item is less than a particular number. In the case of
ITI has to order more quantity of quantity of item than actually required. In that case a store purchase
committee checks if the additional procurement can be approved, if the lowest bidder L1 is not able to
provide the required amount then next lowest bidder L2 is chosen. Then the purchase department asks for
the finance department about the money that can be allocated for the purchase. Finally purchase order is
given.

ITI uses different modes of payment some vendors ask for advance payment. Purchases with higher amount
usually paid by Letter of Credit (L/C), for small amount a Telegraphic Transfer (TT) are adopted. The other
modes of payment are through Demand Draft (DD) and site draft on delivering of goods if the vendor
accepted the purchase order they gives the acknowledgement of order accepting the purchase order. This
accepting order includes their bank account numbers, money transactions code etc….

After these; The purchase department forwards the purchase documents to the Finance department to invoke
payment. Then finance department makes arrangement with SBI (ITI’s Banker) for many transfer to the
connected bank of supplier’s site. Then the supplier acknowledges the receipt of payment. Then the items
are shipped from the supplier’s site to ITI. Any over sea suppliers usually supplies through ITI’s shipping
office located at Chennai. The goods finally arrived at the Inward Goods Section (IGS).

MANUFACTURING DEPARTMENT:

About 250 employees/officers are deployed in this section, according to the order position and the delivery
schedule, weekly program of production is chartered out by the production planning department. The
materials are drawn from the raw materials store, man power is required is deployed, the inspection and
testing program is also timetabled for control purpose, shop order number is allotted to each group of
employees engaged in producing each parts.

Card assembly is done by conventional method and mechanized method also conventional method is
manually fixing the components on the PCB and soldering them with solder iron. SMT method is also
adopted for mounting the components on the PCB and wave soldering machines sold them, automatically.
Both conventional and advanced devices of SMT and wave soldering are rendered to other organization also
in contract basis.

For assembly side they have the product layout ie, they have a continuous production system. SEA consists
of phase like card assembly, rack assembly and cable assembly. In card assembly side the various cards
needed for the exchanges are assembled, the card is the PCB brought from the PCB plant. Now the various
components like IC, transistors, resistors, diodes etc, are systematically mounted on to base printed circuit
board. SMT is used for fixing the components are placed in position buy pick and place pneumatic system
using a machine named SIPLACE. This machine is working as per the program loaded in it, development by
ALCATEL France, for other non SMD components Dual type were soldering system is used. Before placing
the components it has to be prepared by bending leads.

COMMERCIAL DEPARTMENT:

Commercial department is a separate department which comes under DGM (commercial) under the DGM
(manufacturing). All the bills come to the commercial department. This department adds all the excise duty,
service tax, education cess, sales tax etc to the bill. It also sees that all the insurance details and payment
terms are maintained correctly.

Taxation is a section coming under the commercial department. For all manufacturing sector there is an
excise duty of about 14% education cess of 2% and an additional cess of 1%. The manufactured item should
be transported along with the bill of excise duty. These payments are made through back from bulk deposit
only for taxation called personal ledger account. Another type of tax that is to be paid by the raw material
manufacturer is the CENVAT.

ITI is a manufacturing as well as service company. Service like maintaining and installation of exchanges,
item transporting, annual maintenance contract etc are done by this department. So ITI is liable to pay
service tax for such services. Service tax is about 12% and 3% cess. No duty has to be paid for the items that
is manufactured inside the company and is again used for further manufacturing. This is also called captive
consumption. Customs duty has to be paid for some imported goods from foreign countries. Customs duty
varies from 7.5% - 12.5% depend on the type of material imported. Advance payment has to be made for
customs duty. All the imported items should have a bill of entry.

Shipping:

Shipping is another section which comes under the commercial department.

Shipping process consists mainly of 2 steps:

 Packaging.
 Dispatching.

The process starts from receiving sales requisition from the planning department. After the final testing and
inspection the packaging crew collects the items from the production department. For various items different
forms of packaging are involved. All the packaging is done as per the specifications. The switches after
integrated testing process are dismantled into individual components and place each component is anti- satic
bag.
The packaged materials are paid the levies like the sales tax, excise duties, and in some cases octoroi are also
paid. Since ITI is a public limited company, they are provided with some concessions. Then the
transportation of products takes place. Transporter is selected on the basis of annual bidding process.

QUALITY ASSUARANCE DEPARTMENT:

Quality assurance is a separate department with GM as head. Quality is given top most priority at all
stages of production. Due to the stringment quality standards maintained by ITI, DOT has given approval for
ITI to certify the finished products by themselves. ITI is giving by the norms and standards of ALCATEL.
The uncompromising quality has helped ITI to became the first unit in the state of Kerala to receive the
coveted ISO 9002 accreditation from IRQS, Mumbai. The role of the QA department starts right from the
arrival of components from different suppliers to the delivery of finished goods to the customers. The
incoming components should be checked before they could be accepted by ITI. This is done by the IGI
section denoted as incoming inspection for the inspecting of the incoming goods they follow some sampling
methods.

Organization Chart: QA department:

Next comes in the process of inspection section. In the assembly of exchanges we can find components such
assemblies which is combination of different components but not the complete product and finished product
ie. the exchange. The sub assemblies refer to various stages in the assembly line. The in process inspection
includes manual checking, electrical checking and computerized checking. Si the in process inspection helps
to find out the faults in the intermediate stages of assembly. Now there is a final inspection section where the
finished product is subjected to various tests. Due to the stringent quality standards followed by ITI, DOT
has given approval to certify the product by ITI itself. Apart from the above steps there are various other
measures followed by the QA department to assure the quality of the products. They have a management
review program where they consider the various quality standards and upgrade them if found necessary.
Again they have a product quality committee (PQC) who conduct periodic meetings and take care of the
coordination between the various section of checking and inspection.

Another job of QA department is quality documentation and this was done by QA ISO section. The various
standards and procedures followed at each stage of QA are documented properly as per the standards
prescribed by IRQS and also they will conduct two internal audits and also prepare the audit schedule.

Worksheet of QA department:

1. Inward goods inspection

2. Kitting inspection.
 3. Lot conformity inspection.
4. SMC inspection.
5. PCB Prepare inspection.
6. Manual Placement inspection.
7. Soldering inspection.
8. Intermediate inspection.
9. Final inspection.
10. Manufacturing defect analysis (MDA) Testing inspection.
11. Convertor Testing inspection.
12. Cable Confirmity inspection.
13. Rack Confirmity inspection.
14. Board Confirmity inspection.
15. Converter Confirmity inspection.

STORE DEPARTMENT:
Store is where the inward goods are kept safe before production. Those are two sections of
stores ITI;

1. Inward Good Store (Receiving store).

2. Main stores.

Inward Good Store:

Inward Good Store accepts all the purchased materials. The goods that are received through courier is
accepted and entered it in register about the date, time, provider etc. then along with this note the items are
send for inspection by inward goods inspection (IGI). They inspect and check if there is any failure, shortage
or excess of components than ordered. If any problem is noticed this is to be reported to the purchase
department. All the passed components are marked with green stickers and again placed in Inward Good
Store.

Main store:
All the passed items from the IG store are coming to main store. The main functions of main store are;

1. Receipt of Material.
2. Proper Storage.
3. Issue of Material.

All materials that are passed after the inspection of IGI department come to the main store. In the main store the
items are stored as per mentioned in its specification. Each is given a specific code number. This is called a BINTAG.
This BINTAG is 13 digit code and the location where the items are placed in the store. This code is also entered in the
computer LAN so that each department is able to know about the quantity of each item available in store. The shelf
life of each items are calculated and is entered in computer system and is monitored periodically. Certain components
are to be kept in a particular temperature, certain components is need anti-static bags.

MARKETING DEPARTMENT:

Marketing department is an important as far as any organization concerned. Until 1991 ITI enjoyed being
monopoly in telephone industry, but because of policy liberalizations many foreign players started operation
in India which causes threat to ITI’s position as marked leader. CMR (MKFG): Chief Manager (Marketing),
MR (MKFG, CUST.ENGG):Manager (Marketing, Customer engineering).

AEE: Asst.Exec.Engineer.

AE: Ass.Engineer.

The exchange market is almost saturated and present technology. ITI is using becoming obsolete. The
emergence of mobile phones also caused the downtrend in the usage of landline. So now the marketing
department of ITI mainly deals with the marketing if SIM cards. Customer interaction is the main objective
of ITI’s marketing department. BSNL (Cellone), MTNL (Dolphin), BPL are the main customers for sim
cards. First the marketing department floats the tender for sim card manufacturing mentioning the price,
capacity, delivery date etc. The customer accepts the lowest bidder and sometimes negotiates with other
suppliers like Ciscom. But ITI being a PSU gets at least 30% of orders of BSNL and MTNL. Next if ITI’s
tender is accepted, customer gives an advanced purchase order specifying the technical conditions that is to
be met by ITI. Then ITI will provide a Letter of Acceptance (LOA) if the technical conditions are accepted.
After this LOA the customer gives the final purchase order (PO). Then this PO is referred to other
department like planning, production, testing (QA), dispatch and sales.

Customer engineering:

Customer engineering is an important department as far as ITI’s concerned. This department is so common
in other companies. There are altogether about 20 employees in this department. This department acts as an
interface between ITI’s production department and customers. They mainly deals with the orders of E10B or
OCB exchanges. The orders are received by the customer engineering department. Together with the orders
they collect all the customer specifications and for that they would make some assumptions as per standards
of the industry. The requirement of customers differ in some sites a new exchange has to be built. In another
case an expansion of the existing exchange has to be done. The capacity of trunk exchanges are denoted in
Kilo Circuits (KC) and that of local exchanges in Kilo Lones (KL). The design of exchanges depends upon
the Busy Hour Calls (BHL). Then the number of SMX (switching), SDA (Power distribution- 48V), SMA
(Main processor), CA (fault Detection) racks and UC (ISMC+4SMA), UD (ISMC+2SMT-128PCM), UE
(ISMC+2SMA+ISMT-PCM 128) racks were determined. The customer engineering department has to get
these specifications and has to design an exchange as per customer requirement. This process is called first
level break up.

At the next step they prepare a list of equipments. This will give the details about various cards, and other
equipment to be manufactured. Another major function of this department is site engineering section. The
site layout will be designed. The as per the measurement of the site the manufacturing process is carried out.

FINANCE DEPARTMENT:
FM- Finance Manager.

AFM- Assistant Finance Manager.

AFO (3 nos)- Assistant Finance Officer (cash payroll, TA/DA/Medical allowance).

AFO (4 nos)- Assistant Finance officer (Inland Purchase Accounting), Foreign Purchase
Accounting (FPA), MA/CA (Materials/Cash accounting, finance and Budget).

The Finance section deals with all the money matters. Every work under this section is divided into,

1. Routine work- pay to day operation.

2. Periodic work- weekly, monthly or yearly.

There is an average of 100 transactions per day taking place in this department. Now a days the main
transaction is the medical reimbursement to employees. The administration section and medical department check the
bills produced by the employees and if approved the finance department release voucher and the payment is done
through the cash section. At 1 pm every day the cash counter opens. At 3:30 pm the accounts cash book closes and
tally the physically cash balance. The next day itself all the previous day transactions are entered in computer.

HUMAN RESOURCE DEPARTMENT:

ITI is having centralized system with corporate office at Bangalore Strategic planning and all major
decisions are done at the corporate office at Bangalore and its other units like ITI Palakkad are entrusted for
carrying out those plans and decisions. The capital investments for those units are provided by the corporate
office and the profits from these units will also go the corporate office and the tax is paid from there. When
ITI Palakkad alone is considered it is having a decentralized system. Each department has the authority to
take decisions for its own and only in situations where a decision will have its implementation all over ITI
the top management is involved. According to the chief HR manager the employees were not in surplus but
under employed. He describes the situation like this. In an electronic industry changes are very fast and the
obsolescence arte will be very high. So when ITI switched over from EIOB exchanges to its improved
version OCB283. The man power required decreased as the number of cards required for OCB283 was
drastically cut down due to latest technology compared to EIOB exchange. So have man and machines are
under employed.
In ITI grievance handling machinery constitutes of both open door approach and ladder approach. The
employees prefer open door approach. Since it is faster and makes sure that grievance reaches the higher
authorities in right perceptive. But this approach is not convenient to the management, since it consumer
more times of the management irrespective of the validity of grievance.

The collective bargaining program does not bare much relevance in ITI as it is public sector unit where the
management cannot go beyond the stipulated values of government.

TRAINING:

Training is given importance in ITI. Every year various training programs are conducted by the company
inside the campus itself. Technical training was provided by the Technical department and non technical
training was provided by the personal department. If necessary the employees will sent to foreign countries
for technical training. After completion of training program these people will be absorbed to different
sections like production side or the electrical side based on their aptitudes and interest as and when the
vacancies come.

Company also provides quarters or HRA and housing loans to take care of housing problems of the
employees. Also near to factory there is a crèche run by the factory, so that employees can leave their
children there during work time.

REMUNERATION:

In this organization the workers are divided into two groups, officers and non officers or workers. The
monthly remuneration received by officers and workmen including system of compensation as provided in
regulations.

The remuneration of the officers of the company is governed by the guidelines given by the Department of
Public Enterprises Government. The remuneration of the workmen is arrived through negotiated long term
settlement with the recognized unions subject to the overall guidelines of Department of Public Enterprises,
Government of India.

Staff and workers pattern:

In this organization workers are of two types;

A. Officers.
B. Non officers.
Officers:

Grade 1- Assistant officers.

Grade 2- Engineers or their Professionals.

Grade 3- Assistant Manager.

Grade 4- Deputy Manager.

Grade 5- Manager.

Grade 6- Chief Manager.

Grade 7- Deputy General Manager.

Grade 8- Assistant General Manager.

Grade 9- General Manager

Grade 10- Executive Director.

Non officers:

a) ‘A’ category low qualifications.

b) ‘B’ category promoted from ‘A’ based on experience.
c) ‘C’ & ‘D’ with ITI pass certificate.
d) ‘E’ & ‘F’ diploma holders.
e) ‘G’ open recruitment with qualification & 8 year experience.
f) ‘H’ promotional on the basis from ‘G’ category.
 CHAPTER 5
SWOT ANALYSIS
SWOT Analysis:
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be
incorporated into the strategic planning model.

STRENGTH.

The company uses advanced machineries for manufacturing of its products like Defence products, GSM
and CDMA products.

The company hires skilled employees depending on the employer requirement in each department.

The company produces diversified products like SMPS (Switched Mode Power Supply), Fake note
detector, Currency counter and Digital inverter.

The company never compromises on production quality.

The company has built a strong customer relationship with companies like BSNL.

The company provides approved and qualified facilities to match the international standards.

The company has strong in-house research and development for the company to develop new products
and also stay ahead in adoption of latest technology.

WEAKNESS:

One of the main weaknesses faced by the organization is lack of support from government.

Another major weaknesses of ITI industry is of bearing other plant loss even though this plant is highly
profitable.

The company sometimes faces the inability to meet the deadlines of customers due to inefficient work by
laborers.

Using of some old machines for production reduces the efficiency of production.

OPPORTUNITIES:

The company has been able to diversify its business in various locations namely Bangalore, Naini,
Mankapur etc. and also produce diversified products to get access to various markets present.

The company has business deals by having contract with ISRO, VSSC and Defence which is of a great
opportunity for the firm

. The company has a huge market for wireless communication equipment.

THREAT:

One of the major threats faced by the organization is facing global competition.

The ITI’s major collaboration itself is a major competition in telecommunication equipment for the
manufacturing field.

Since the company face with problems like increase in the cost of raw materials, rent etc., it in turn is
increasing the cost of production.
 CHAPTER 6
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS:
 ITI Palakkad is India's pioneering venture in telecommunication field from its existence
 The company has a well organised management system
 The number of officers is more than non officers because of no recruitment happening for past few
years
 Most of the employees are male
 More than 50% of the workers are diploma holders
 The unit mobilise capital through issue of shares, but controlled by the corporate office
 It is found that there exist a Cordiant relation between the management and trade unions
 Training is given high importance in the organisation
 Apprentice training is mostly preferred in the unit
 Employees in the unit are satisfied with the working environment and welfare measures provide
 Officers in the unit have 25 years plus experience and they have nearing retirement

SUGGESTIONS:
 Unit should increase production in full capacity
 They should keep an eye on fluctuating profits for survival
 More attention should provided to improve opportunities
 Company should adopt settlement policies so that they can avail more credit facilities
 The unit should focus more on research and development
 They can explore new products with maximum contribution in order to cover the fixed cost
 Company should give more opportunity to fresher's also
 Company should give more opportunities to the female workers

CONCLUSION:-
The privileged opportunity of one month organizational study proved out that nature of business
firm and it had enabled me to have an exposure to the majority the topics related to companies functioning,
structure, policies, promotional activities, working environment, organizational culture etc. the significant of
financial analysis in determining the performance is organization was also realized. This organizational
study helped me to know about the company, the departments, the functioning of various department etc. it
is also helped me to know about the practical applications of the theories in the business studies.

ITI Ltd is India’s pioneering venture in the field of telecommunications with state-of-the-art manufacturing
facilities spread across 6 locations and a country side network of marketing/service outlets. The Palakkad
division of ITI is a well functioning manufacturing unit. Telecommunication equipment demand is
increasing while considering whole world itself. The new innovations lead to drastic changes in the fields of
communications. The communication becomes cheaper faster and more reliable due to technological
advancement of communication equipment.
CHAPTER 7
REFERENCE
Reference:
 Annual report of company.
 www.itipalakkad.in.
 https://en.wikipedia.org/wiki/Telecommunications_in_India.
 Old projects prepared.