Chapter 1

INTRODUCTION

This project named as Organization study at INDIAN TELEPHONE

INDUSTRIES LIMITED, PALAKKAD has been undertaken with the objective of

analyzing the practical aspects of business management in the modern business

scenario and studying the various functions of departments in the organizations. The

time duration of the project was one month. The result of the study is the

understanding of the inter-related functions of different departments of the selected

industrial unit for this study.

Management is an activating element in any enterprise for getting things

done through people. Management becomes inevitable for directing and unifying the

groups of efforts towards a common objective. Management is not merely a task of

managing the business but it is an essential accomplishment of all social

organization and it is to be found everywhere, as a distinct and dominant activity.

While describing the pivotal role of the management in the social history, Drucker

rightly remarks, management which is the organization of the society specially

charged with making resources productively, i.e., with the responsibility for organized

economic advance. Therefore, to reflect the basic spirit of the modern age,

management is that function of an enterprise which concerns itself with the direction

and the control of the various activities to attain the business objective. An effective

management is planning, organizing, staffing, directing and controlling an activity,

project or enterprise.

OBJECTIVE OF THE STUDY

The ultimate aims of the study have been to get familiarized with the ITI

Limited and to study the overall performance of that organization. The specific

objectives of the study are listed below.

1. To understand and analyse the organizational structure of ITI Ltd.

2. To study the trends in the important performance indicators like sales and profit

3. To familiarize with the production procedures

4. To understand the decision making process and procedures at different levels of

management.

5. To have a clear idea about the delegation of authority and responsibility among

the various levels of the organization.

6. To find the strength, weakness, opportunities and threats of the company

7. To get acquired with the functioning of the various departments in an

organization.

SCOPE OF THE STUDY

The scope encompasses both geographical and conceptual boundaries. The

study is useful in accessing the quality and performance of the company. It helps to

conduct a detailed study on the structure and the functional areas of the selected

organization, namely, the ITI Limited. This study helps to identify the strength and

weakness of the organization and to find out the area where the organization should

improve. It adds to familiarizing the telecommunication industry and ascertaining the

present position of the company.

RESEARCH METHODOLOGY

Research Methodology deals with how the research study should be

undertaken. This includes the research design to be used, data collection method to

be adopted, research work to be carried out, and limitation inherent in the research

project.

RESEARCH DESIGN

Research design is the basic frame work, which provides guidelines for the

research process. In this study data are collected from different category of

respondents. These are by asking questions to the respondents and collect the

organization structure, departmental details, policies and procedures of the

company.

SOURCES OF DATA

This study is based on the primary and secondary sources of data. The

primary data for the study have been collected through personal interview with

managers and other key persons within the organization. The main sources of

secondary data have been published and unpublished documents including the

company’s brochures, records and annual publications, library books and internet

sources.

RATIONALE OF THE STUDY

Palakkad district in Kerala has a unique position in the commercial map of

India as being the heartland of the country’s industry. INDIAN TELEPHONE

INDUSTRIES in Palakkad district is one of India’s public sector units in the

telecommunication sector. The former Prime Minister, Jawaharlal Nehru is the

master mind behind ITI. Having been a native of Palakkad prompted the selection of

this unit for the organizational study.

STUDY PLAN

This organization study conducted in May, 2012 covered a period, exactly one

month. The study plan followed for the purpose is given below.

FIRST WEEK: Familiarizing with organization by going through various documents

SECOND WEEK: Visiting various departments and conducting discussions with

department heads for primary data collection

THIRD WEEK: Collecting information from employees, and from secondary sources

FOURTH WEEK: Data analysis and preparation of the project report

Chapter 2

INDUSTRY PROFILE

Telecommunications industry deals with the activities and services of

electronic systems for transmitting messages through cables, telephone, radio or

television. In the recent years the telecommunication sector shows a tremendous

growth. The major factors responsible for the growth of telecommunications industry

are use of modern technology and market competition. One of the products of

modern technologies is the optical fibres, which are being used as a medium of data

transmission instead of using coaxial or twisted pair cables. Optical fibres can carry a

high volume of data and are easier to maintain and install. The use of

communication satellites made telecommunications a booming industry. The use of

mobile network has a crucial role behind its leading companies are showing their

interest to invest in this sector.

The introduction of these advanced technologies made the

telecommunications industry a competitive one, where a number of multinational

companies have shown their interest to invest in this industry. Consequently the

prices have been reduced, and the quality improved at the same time. During 1990s,

the telecommunication industry showed a speedy growth in terms of investment and

eventually increased the competition. The competition between the companies led to

the decline of revenues.

TELECOM INDUSTRY IN INDIA

The Indian Telecommunications network with 203 million connections is the

third largest in the world and the second largest among the emerging economies of

Asia. Today, it is the fastest growing market in the world. The telecommunication

sector continues to register significant success and emerge as one of the key

sectors responsible for India’s resurgent economic growth. The Indian

telecommunication industry, with 600 million mobile phone connections as of

February 2010, is the third largest telecommunication network in the world and the

second largest in terms of number of wireless connections 563 million. Indian

telecom industry is one of the fastest growing in the world and is projected that India

will have 'billion plus' mobile users by 2015. Projection by several leading global

consultancies is that India’s telecom network will overtake China’s in the next 10

years. For the past decade or so, telecommunication activities have gained

momentum in India. Efforts have been made from both governmental and non-

governmental platforms to enhance the required infrastructure. The idea is to help

modern telecommunication technologies to serve all segments of India’s culturally

diverse society.

The Indian telecommunication industry has a significant presence in the

national economy as well as in the international economy. Its contribution to the

Indian economy is manifested in terms of its contribution to the industrial production,

employment generation and foreign exchange earnings.

The Indian telecommunication industry is growing rapidly. This rapid growth

has been possible due to various proactive and positive decisions of the Government

and contribution of both by the public and the private sector. The rapid strides in the

telecom sector have been facilitated by liberal policies of the Government that

provide easy market access for telecom equipment and a fair regulatory framework

for offering telecom services to the Indian consumers at affordable prices.

The use telecommunication equipments are increasing day by day. Rising

demand for a wide range of telecom equipment, particularly in the area of mobile

telecommunication, has provided excellent opportunities to domestic and foreign

investors in the manufacturing sector. The last two years saw many renowned

telecom companies setting up their manufacturing base in India. Ericsson has set up

GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq has set up handset

manufacturing facilities in Bangalore. Nokia set up its manufacturing plant in

Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near

Pune.

EMERGING TECHNOLOGIES

Telecommunications service providers and equipment vendors today face

significant challenges as they address the multitude of changes and competitive

challenges sweeping their industry. Networks are increasing in size and complexity

as demand pressures grow and as new technologies — from wireless

communications and fiber optics to multimedia, computers and advanced Internet

technologies converge upon the network. As the competitive environment intensifies,

it becomes increasingly important for service providers and equipment vendors to be

able to react to changes quickly and effectively while maintaining the highest levels

of performance and reliability. The emerging technologies in telecom sector are the

following.

♦ GSM and CDMA

Participation of the private entities in the telecom sector is rapidly increasing

rate there by presenting the enormous growth opportunities. There is a clear

distinction between the Global Satellite Mobile Communication (GSM) and Code

Division Multiple Access (CDMA) technologies used and the graph below shows the

divide between the two. In terms of the Global System for Mobile Communication

(GSM) subscriber base, places India third after China and Russia. CDMA technology

was introduced in India as a limited mobility solution. The introduction of CDMA

services has created competition, lowered tariffs and offered many citizens access to

communication services for the first time.

♦ Broadband Technologies

Telecommunications service providers and equipment vendors today face

significant challenges as they address the multitude of changes and competitive

challenges sweeping their industry. Networks are increasing in size and complexity

as demand pressures grow and as new technologies — from wireless

communications and fibre optics to multimedia, computers and advanced Internet

technologies converge upon the network. As the competitive environment intensifies,

it becomes increasingly important for service providers and equipment vendors to be

able to react to changes quickly and effectively while maintaining the highest levels

of performance and reliability.

♦ Mobile Phone: Technology Generations

There are estimated to be 127 billion mobile phones in the world today. The

emerging technologies such as 3G and 4G developed the mobile industry.

♦ Internet Protocol (IP) Telephony

Although IP telephony does not yet constitute a substantial percentage of the

global worldwide telephony traffic volume, it is expanding rapidly due to some

technical motivations.

♦ Voice-Over Internet Protocol (VoIP)

A major development that started in 2004 was the introduction of mass-

market VoIP services that utilize existing broadband Internet access, by which

subscribers place and receive telephone calls in much the same manner as they

would via the public switched telephone network (PSTN). Full-service VoIP phone

companies provide inbound and outbound service with Direct Inbound Dialling. Many

offer unlimited domestic calling for a flat monthly subscription fee. This sometimes

includes international calls to certain countries. Phone calls between subscribers of

the same provider are usually free when flat-fee service is not available

♦ Bluetooth Technology

Bluetooth is managed by the Bluetooth Special Interest Group, which has

more than 14,000 member companies in the areas of telecommunication, computing,

networking, and consumer electronics. The SIG oversees the development of the

specification, manages the qualification program, and protects the trademarks. To be

marketed as a Bluetooth device, it must be qualified to standards defined by the SIG.

A network of patents are required to implement the technology and are only licensed

to those qualifying devices; thus the protocol, whilst open, may be regarded as

proprietary.

The other emerging technologies are i-mode Technology, Digital Subscriber

Line (DSL), Wireless in Local Loop (WLL), Undersea Cable Projects and Direct-To-

Home (DTH) TV.

TOP PLAYERS IN TELECOM SECTOR

Telecommunications service providers and equipment vendors today face

significant challenges as they address the multitude of changes and competitive

challenges sweeping their industry. Networks are increasing in size and complexity

as demand pressures grow and as new technologies — from wireless

communications and fiber optics to multimedia, computers and advanced Internet

technologies converge upon the network.

As the competitive environment intensifies, it becomes increasingly important

for service providers and equipment vendors to be able to react to changes quickly

and effectively while maintaining the highest levels of performance and reliability.

The major telecom players in India are the following.

1) Reliance Communications Limited

Established in 2002, Reliance communication is the wholly owned subsidiary

of Anil Dhirubhai Ambani Group of Companies providing the telecommunication

services.

2) Bharati Airtel Limited

Established in 1995 by Sunil Mittal as a Public Limited Company, Airtel is the largest telecom service provider in Indian telecom sector. With market capitalization of over Rs.1,360 billion, Airtel has 31% of total market share of GSM service providers.

3) BSNL

Founded in 2000, Bharat Sanchar Nigam Ltd. is India's largest public sector

Telecommunications Company providing a wide variety of telecom services. Its

service range covers Wireline, CDMA mobile, GSM Mobile, Internet, Broadband,

Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services, etc.

4) MTNL

MTNL has successfully converted its telephone exchange network to the

digital mode systems. Having a customer base of more than 6 million, MTNL has

showed a growth of over 30% during financial year 2005-06.

5) Ericsson

Ericsson has a wide network of more than 140 countries and more than 30%

market share. Ericsson's parent company Teleonsktiebolaget L M Ericsson was

established in 1876.

6) Nokia

Nokia is one of the leaders in the Indian market providing telecom

equipments. Its product range starts from a handset of Rs. 2000-3000 and goes to N

series, which amounts to more than Rs. 25000-30000.

7) Siemens Communications

Siemens is one of world's largest companies providing electrical engineering

products and services. Siemens covers a wide range of services in the electronic

arena, such as energy, construction, transportation, lighting, information and

communication.

8) Idea Cellular Limited

Aditya Birla Group and Tata Group as joint venture, Idea Cellular, is a part of

Aditya Birla Nuvo, a flagship company of the Aditya Birla Group, Idea is growing its

network in 11 circles.

9) Tata Teleservices

Tata Teleservices, one of the 96 companies of Tata Group, has its network in

20 circles. It is the first company to launch CDMA mobile services in India.

The Indian telecommunications has been zooming up the growth curve at a

feverish pace, emerging as one of the key sectors responsible for India's economic

growth. India is has surpassed US to become the second largest wireless network in

the world with a subscriber base of over 300 million in April, according to the the

Telecom Regulatory Authority of India (TRAI).

Chapter 3

COMPANY PROFILE

ITI Ltd Palakkad was established in the industrial corridors of Coimbatore and

Kochi in the NH-47 and located at Kanjikode 10 kms from Palakkad Town. ITI is

India's largest supplier of telecommunication products and services and is a major

manufacturer of OCB exchanges. The company offers a complete range of telecom

products and solutions covering the whole spectrum of Switching, Transmission,

Access and Subscriber premises equipment. Palakkad plant was established in the

year 1976 as the Nation's first Electronic Switching Systems Manufacturing Unit with

a capital investment of Rs. 2.6 Million. The plant is the leading Switching Equipment

Manufacturer for the National Telecom Network. The capacity of the plant is 1 million

lines per annum. The total manpower of the plant is 688.

ITI Limited, a Public Sector Undertaking under the Ministry of Communication,

Govt. of India, the leading Telecom Equipment Manufacturer and Solution provider in

India . is a major supplier of telecom equipment to service providers like BSNL and

MTNL. ITI is having 6 manufacturing plants, 11 Regional Offices and 34 Area Offices

across the country.

ITI is having the state of the art manufacturing facilities and Level 4 security

for the manufacturing and personalization of GSM SIM cards catering to the needs of

our customers BSNL and MTNL for the past 10 years. ITI was one among three

public sector consortium members entrusted by the Ministry of Home, Govt. of India

for implementation of the nation-wide pilot project of MNIC (Multi-purpose National

ID Card).

The plant has a centrally Air Conditioned World Class Manufacturing Facility,

A State-of the -art Fuji SMD Line, Printed Circuit Board (PCB) manufacturing plant,

SIM cards manufacturing and personalization centre, VRLA Battery Plant, Modern

Calibration Lab, Cable Assembly and Harnessing Equipment, PC based

Microprocessor development systems and Test Equipment.

The in-house developed Integrated Manufacturing Management System

provides IT support to all the areas like Manufacturing management, Materials

management, Quality, Finance, CRM and HR. The plant has full fledged Product

Support Centre and Customer Service Centre equipped with skilled technical

persons and latest test equipments.

`ITI manufactures GSM and CDMA systems in addition to SSTP, SIM cards,

MLLN, NMS and PCB. The company has ISO 9001-2000 certification and has

executed projects in the Middle East, Southeast Asia, Central Asia, Africa and

Europe. ITI gives top priority to the quality. It has the slogan “synonymous with

quality”.

VISION & MISSION OF ITI

VISION

To re-establish leadership in manufacturing and supply of telecom equipments and

also to retain the status of top turnkey solution provider.

MISSION

To be the leader in the domestic market and an important global player in

Voice, Data and Image communications by providing total solutions to

customers. To build on core competencies to enter new business areas.

OVERVIEW

Coporate Head Quarteers : ITI Bhavan, Doorvaninagar, Bangalore - 560016.

Manufacturing Units : : Bangalore, Naini (Allahabad-UP), Rae Bareli(UP) .

Mankapur (UP), Pabkkad (Kerala), Srinagar (J&K)

Network Ssytem Unit : Bangalore

Regional Offices : New Delhi, Bangalore, Kolkatta, Lucknow, Mumbai,

Channai, Hyderabad, Bhuhaneswar . Bhopal, Ahamadabad, Kochi; supported

by 36 area ofllces all over the country.

Manpower: 13,045.

R&D Base: Bangalore, Naini & Mankapur

Quality system : ISO 9000 compliant.

COMPANY DETAILS

Name : ITI Ltd, Palakkad

Address : Kanjikode West, Palakkad

Registered office/ factory : ITI Bhavan, Doorvani nagar, Bangalore

Nature of incorporation : Pulic limited company

Nature of business : Manufacturing of telecom equipments

Chairman : Mr: K L Dhingra.

Banker : SBI

Total capital employed : 88 crore

Annual turnover : 16.3 crores

Brand name : ITI

Employment potential : 689 workers

AWARDS & RECOGNITION

ITI Ltd conforms to International Quality and Safety Standards and is certified

with the ISO 9001:2000

First in Kerala to achieve ISO 9001 Accreditation

Accredited with the prestigious ‘Environmental Management System’ ISO

14001

Kerala state Productivity council award winner in 1996-97, 1997-98 and 1998-

99

Awarded approved Inspection Scheme’ status for Major products

Winner of Safety Award sponsored by National Safety Council, for 15

consecutive years

Winner of ‘Institutional Engineers Excellence Award’ 1999

QUALITY POLICY

ITI is committed to provide competitive and reliable products, solutions and

services. ITI will achieve this through the following.

Sound Quality Management Systems

Empowered Human Resources

Innovation

Continual improvement, mutual respect and customer delight will be the

guiding philosophy.

BUSINESS MODEL

In collaboration with its partner, ITI proposes to penetrate the ever-growing

market in Smart Card Solutions for various applications in the Government and

Private Sector, synergizing the strengths of both the organizations. The revenue

sharing ratio can be worked out based on each party's contribution to the business.

TERMS AND CONDITIONS

Selection of Business Partner will be based on the eligibility criteria, other

clauses mentioned in this document, exit/termination proposal of the business

arrangement and evaluation by an expert committee constituted for the purpose.

The following documents are required to be submitted along with the EOI.

Company Profile

Certificate of Incorporation with the copy of Articles and

Memorandum of Association.

Audited Annual reports of last two financial years

Details of similar project implementation (Customer details,

project profile, Project executed, brief about project

implementation) and performance certificate.

Details of Infrastructure and Human Resource employed.

Quality philosophy and certifications

List of implementation partners for the projects executed.

Detailed proposal on exit/termination mechanism during/end of

contract period

Detailed proposal on business model and marketing strategy.

Any legal case(s) against the company in the last 3 years

MILESTONES OF ITI

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

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

Mar 1986 First batch of Electronic exchanges delivered to Indian Army

Dec 1986 Corner stone laid for phase-3 expansion

Jan 1987 The first E10B TAX delivered to Ernakulam

Oct 1987 A telecommunication system designed by ITI fro Nayveli 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 by IRQS

Mar 1995 First E10B Local exchange delivered to Golconda

Mar 1995 First OCB 283 exchange delivered

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

Oct 1996 ISO 9002 Accreditation by IRQS

Oct 2003 ISO 9001 Accreditation by IRQS

Jun 2004 Development of SIM OS fro 16K

Feb 2005 ISO 14001 Accreditation(EMS) by IRQS

Aug 2005 Launched web based CRM for OCB AMC

MANUFACTURING FACILITY

ITI Ltd, Palakkad, has a highly productive Plant equipped with modern

facilities for Surface Mounted Devices (SMD) assembly and automated testing to

ensure zero defect product and Printed Circuit Board (PCB) manufacture of various

layer counts.

It also has state-of-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.

It is fully networked over a Local Area Network with more than 200 nodes

connecting all the departments along with VSAT connectivity with all the other

manufacturing Plants.

TESTING & QA

The facility has highly sophisticated tools and programs to test the

functionality of the crack, 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.

TECHNOLOGY ALLIANCES

ITI has technology alliances with the leading Technology providers for

the following product range:

Product Technology provider

GSM-BTS Alcatel-Lucent, France

G-PON Alphion, USA

CDMA Infrastructure ZTE, China equipment

NGN (Class 4) Huawei, China

NGN (Class 5) ZTE, China

STM 1,4,16 Tejas, India

STM64 Xalted, India

DWDM ZTE, China

Microwave equipments SAF Tehnika, Latvia

CLI phones Pramod Telecom, India

ADSL -CPEs SEM India

MLLN Tellabs, Finland

SSTP Tekelec, USA

Radio Modem PointRed, India

SIM cards WatchData, China

USIM Cards Bartronics, India

PRODUCT PROFILE

» Large Digital Switches and Digital Trunk Exchanges ( OCB)

» Double sided and multi layer Printed Circuit Boards (PCB)

» Assembly of state-of-art surface mounted devices (SMD)

» SIM Cards/ Smart cards/ National ID Cards

» New Generation Network(NGN) Equipments

» Network Management System (NMS)

» Managed Leased Line Network (MLLN)

» Voice over Internet Protocol (VoIP)

» Virtual Private Network (VPN)

» Stand-alone Signaling Transfer Point (SSTP) Equipment

» Integrated Manufacturing Management System (IMMS) and other customized

software solutions

NEW PRODUCT

National Population Registration (NPR) Project: ITI is one of the three Public

Sector Undertakings short listed by RGI (Registrar General of India) for providing

Multi Purpose National ID cards. The scope of work involves collection of citizen data

including biometrics followed by preparation of ID cards. It is expected that this

project will give a substantial turnover in the coming 2 to 3 years with good value

addition. ITI was selected as one of the consortium member along with M/s BEL and

M/s ECIL by RGI for the NPR Project. This Plant is executing the Project which

includes Data Collection, Biometrics, Manufacturing and Personalization of Smart

Cards.

DIVERSIFIED PRODUCTS

SMPS (Switch Mode Power Supply)

FEATURES

• Low cost & light weight

• Controls up to three LVD

• Hot plug-in rectifiers

• Fan cooling

• Temperature compensated battery charging

• Intelligent battery health monitoring

• Wide AC Input range

• RS485 Compatible (Remote Monitoring)

Digital Inverters

Digital Inverter provides AC Output Voltage during mains AC failure for

domestic purposes. This is backed up by a Battery which is automatically being

maintained on regular basis on availability of AC mains. This is fully automatic PWM

based technology which takes care of Over load cut off with auto reset timer switch

and deep discharge battery cut off. Unit has multi display unit which provides visual

indication for AC mains, Inverter ‘ON’, Battery Low, Battery charging and Over-load.

Currency counting machines

FEATURES

ITI's Note Counting Machine can be used for counting a wide variety of freshly

issued, soiled and old currency notes whether bundled or loose.

MODELS

ITI's Note Counting Machines are available in two models with the same functional

features in both the models.

Floor Mode: ANCM-01

Desktop Model: ANCM-02

INFRASTRUCTURE

In-house Research and Development

Network System Unit capable of undertaking turn key jobs

Self contained component evaluation centre

Fully automated assembly lines

In circuit tester(ICT)

Modern Chemical, Metallurgical Labs

Mechanical fabrication/machine shops with modern CNC machines

Moulding and die casting

Full fledged state of the art tool rooms

SMT (Surface Mount Technology)

Environmental testing

Component approval center approved by BSNL

ORGANIZATIONAL STRUCTURE

ITI Ltd is following Line and staff management. General Manager is the head

of the organization. Under the GM, there are six Managers; Finance Manager,

Marketing Manager, Deputy General Manager Human Resource, Manager- Internal

Audit, Quality assurance Manager and Production Manager. For the production

department there are five Deputy Managers and two Chief Managers for various

departments. It can be shown as in the organization chart.