ITI’S (Indian Telephone Industries Ltd.) DEMISE:
RELUCTANCE TO CHANGE
1.1 INTRODUCTION
ITI Limited is India's pioneering venture in the field of telecommunications. Born in 1948, this premier PSU has contributed to 50% of the present national telecom equipment. With state-of-the-art manufacturing facilities spread across six locations and a countrywide network of marketing/service 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.
Secure communications is the Company's forte with a proven record of engineering strategic communication networks for India's Defence forces. Extensive in-house R&D work is devoted towards specialized areas of Encryption, NMS, IT and Access products to provide complete customized solutions to various customers. The competitors of ITI have been Tata Telecom., Shyam Telecom Ltd., Krome Communications Ltd., Himachal Futuristic Communications Limited. and Bharti Telecommunications.
1.2 PROBLEM FACED BY COMPANY
Since ITI ltd was one of the most prominent companies of its times, the decline of the company was a gradual process and not an impulsive one. ITI, on September 31, 2003, sought consent from its shareholders to inform the Board for Industrial and Financial Reconstruction of the fact that heavy losses had more than halved the company's net worth. For 2002-03, the company had suffered a loss of Rs. 375 crores with a net worth of Rs. 452.32 crores. The net worth per rupee of the company's Rs. 388 crore paid up capital was minus 10 paise.
1.3 METHODOLOGY OF RESEARCH
The methodology we have applied to analyze the problems prevailing in the industry , is that ...