Formulation diversification strategy for a tele-communication industry - Indian telephone industies, Mankapur

Abstract

ITI Mankapur is one of the strategic siness unit of M/S ITI LTD.This project was set-up in year 1983 in collaboration with CIT- LCATEL of France and started manufacturing E10-B switching equipment,which was onsidered state of the art technology in early 80's.This project is based on the concept of vertical integration .This unit not only manufactures Switching equipments but also manufactures various type of electro-mechanical components like CONNECTORS,RELAYS,PCB'S,COILS,MDFPHYBRIDS,METAL PARTS etc. Since last five years unit is earning profit and major share of turnover and profit of company is generated by this unit.So far Mankapur has supplied more than 30 lakh lines of telephone exchanges to its sole customer i.e. DOT and MTNL. TEchnology is well proven and product is highly reliable. The burning problem today,this unit is facing i.e. of threat of phasing-out of its present product and technology.DOT has indicated that this product will not be required in the net-work beyond 1996-97 and future requirement can not be projected.Already,DOT has floated tender for new switches as well switching equipments have been delicenced•Mu1ti-nationals like ALCATEL,FUJITSU,ERICSSON,SIEMENS,GPT and AT&T ar& coming in dig way in INDIA to manufacture and supply the equipments to DOT.