Indias First Public Sector Unit Psu Commerce Essay


Indias first Public Sector Unit - 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 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. 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 export markets. The company is consolidating its diversification into Information and Communication Technology (ICT) to hone its competitive edge in the convergence market by deploying its rich telecom expertise and vast infrastructure. Network Management Systems, Encryption and Networking Solutions for Internet Connectivity are some of the major initiatives taken by the company.

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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 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 continued to register significant success during the year and has emerged as one of the key sectors responsible for India's resurgent India's economic growth

Telecom sector accounts for 1 percent of India's GDP. Likely to double in 2- 3 years

Telecom services contribute 30 percent to India's total service tax revenue

The Indian telecom sector gives direct employment to more than 4,00,000 people, compared to about 6,00,000 people in China

Not just the enabler of software, BPO and ITES companies, it is also the lifeline of a fast growing E-commerce space

State-of-the-art telecom infrastructure has led to the rise of cities like Mysore, Mangalore, Jaipur, Ahmadabad, Kochi on the software services map

This has helped spread the benefits of a booming Indian economy to beyond metros and large cities, and wealth creation is happening in tier-2 cities.

Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some essential telecom services like telephone, radio, television and Internet. Telecom industry in India is specifically emphasizing on latest technologies like GSM (Global System for Mobile Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile Radio Trucking Services), Fixed Line and WLL (Wireless Local Loop). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast.




This is the logo of ITI Ltd. it consists of two parts. One is Hindi alphabet and second is the name ITI. The Hindi alphabet is "TTE". It represents the first letter of telephone, when it is written in Hindi. This is chosen as the first part of the logo, because the company's major area of working is telecommunication and they want to be the pioneers in this area.

Vision and Mission

To re-establish leadership in manufacturing and supply of telecom equipments and also to retain of top turnkey solution provider.

Quality Policy

ITI is committed to provide competitive and reliable products, solutions and services.ITI will achieve this through:

Sound quality management systems

Empowered human resources



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 in the NH-47 and only 10 kms from Palakkad town. The unit is spread over 135.9 acres. As the nation's first Electronic Switching System manufacturing Unit, to manufacture large digital switches and digital trunk exchanges, in collaboration with Alcatel.

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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 Certifications 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 was 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.

Environmental Management System in Palakkad unit was audited by IRQS and certified to ISO 14001:1996 Standard in Jan 2005 and upgraded to 14001:2004 Edition in April 2006.

ITI Palakkad Unit has entered into the new business areas of 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 SMART 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 needs 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.

ITI LTD Palakkad is first in Kerala to receive ISO-9002 Accreditation. The plant is the winner of FACT M.K.K Nair productivity council Award (1995-1999) and the institution of Engineer's "Excellence Award" 1999. The plant is also the winner of the national safety award by Kerala chapter of national safety council for the last 15 consecutive years.


Number of Employees at Palakkad Unit

Project Engineers


Contract Technicians







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 guide lines of the Department of Public Enterprises, Government of India.

Staff and workers pattern

In this organization the workers are of two types


Non officers


In this group they are graded numerically from grade 1 to grade 10 i.e. the executive director is the superior in most of the unit.

Grade 1 officers are assistant officers and they would be promoted from last grade of non officers.

Grade 2 is the engineers or other professionals. They are directly recruited by the Head office through all India advertisements.

Grade 3 and 4 which include Assistant manager and Deputy Managers respectively are promoted from previous grades.

Grade 5 which is called manager is also on promotional basis, but sometimes it is also recruited on vacancy basis.

Grade 6 - Chief Manager

Grade 7 - Deputy General Manager,

Grade 8 - Assistant General Manager,

Grade 9 - General Manager are all in promotional basis.

Grade 10 which is Executive Director will be member of the Board of Directors will be member of the Board of Directors elected by them only.


In this group the workers are graded alphabetically from 'A' to 'H'.

'A' category workers which are usually appointed as helpers considering the low qualification.

'B' category workers are promoted from 'A' category as they get experience.

'C' and 'D' category- The workers of these are promoted from the previous categories or they are recruited if they have ITI pass certificate.

'E' and 'F' category- These category workers may be diploma holders, so they must recruited from outside or on the basis of experience. They can also be promoted from previous categories.

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'G' category- This is an open recruitment category considering the qualification along with minimum 8 years experience of the candidates.

'H' category- This category is purely on the promotional basis from 'G' category.

Products/Projects Of ITI Ltd, Palakkad

Large Digital switches and digital Trunk exchanges [OCB 283]

Double sided & Multi Layer printed circuit Board [PCB]

Smart cards/SIM cards

NEW Generation network [NGN] equipment

GSM-BTS, BTS shelter, roof top tower CDMA.

Transmission: Microwave, fibre optic, satellites.

Access: WLL, DLC, pairing.

Terminal Equipment: Telephones, ISDN products, Video conferencing.

Managed leased link network [MLLN]

State alone signalling transfer point [SSTP] equipped

Integrated Management System [IMMS] and customized software solutions

Digital inverter

Currency counting machine

NPR [National population registration (New Project)].


IN-house Research & Development.

Network System unit capable of undertaking turnkey jobs.

Self contained component evaluation centre.

Fully automated assembly lines.

In circuit tester.

Modern chemical, Metallurgical Labs.

Mechanical fabrication/machine shops with modern CNC machines.

Moulding & Die Casting

Fully fledged state of the art tool rooms.

Surfaces mount technology.

Environmental Testing.

Component approval center approved by BSNL

Facilities Included

PCB Manufacturing facilities.

Mechanical fabrication/Machine shop with modern CNC machines and Finishing shop.

Card assembly and testing including in circuit tester.

SMT line.

Plastic Injection Technology.

Through-hole component assembly.

Manufacturing facilities for Mechanical items.

Fabrication of towers and shelters for GSM.

Stratergic Alliances/Technical Collaborations

Alcatel Lucent, France.

ZTE, China.

Alphion, USA.

SEM India, India.

Huawei, China.

Teklec Inc, USA.

Tejas networks, India.

Xalted, India.

Mobi, China.

SAF Tehnica, Latvia.

Watch Data, China.

Tellabs, Finland.

Vuppala, India.

VNT, India.

C-DOT, India.

Elteck, India.



DoT, BSNL, MTNL, Defences, Paramilitary, Police, Steel oil sectors, railways, post offices, factories, banks, corporate hostels, state and central government organisation, international security organisations, government of India.

Global Customers

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


Corporate head quarters: ITI NAGAR


BANGALORE- 560016.

Manufacturing units: Bangalore

Naini (UP)

Mankapur (UP)

Rae Bareli (UP)

Palakkad (KERALA)

Srinagar (J&K)

Networking system unit: Bangalore

Regional offices: Cochin, Bangalore, Lucknow, Chennai, Mumbai,

Hyderabad, Bhubaneswar, Bhopal, Ahmadabad.

Quality System: IS0 9000 - 2000

Department Profile

The main departments of the company are as follows:

Production Department

Marketing Department

Finance Department

HR Department

Vigilance Department

Organisational Structure


(Chart no. 1)


ITI Human Resource Department strives to build technological and managerial excellence in the organisation through best HR policies and practices in the industry. The ITI is committed to build a creative workforce with emphasis on quality and customer satisfaction.

HR Vision

To make ITI a dynamic, highly competitive and value based learning organization with skilled and motivated human resources to face present and future challenges in the fast changing telecom sector.

HR Objectives

Transform the company into a clean and efficient organisation.

Promote culture of excellence.

Ensure empowerment

Build and upgrade skills and competencies for growth and challenges in the job.

Build HR information systems for present and future HR plans.

Seven dimensions of HR that produce through people.

Employment security

Selective hiring of new people.

Self managed teams and decentralisation of decision making as the basic principle of organisational designs.

Comparatively high compensation contingents on organizational performance.

Extensive training.

Reduced status distinctions and barriers including dress, language, office arrangements and wage differences.

Extensive sharing of financial and performance information throughout the organization.

Organizational chart of Human Resource Department



ESTABLISHED SECTION (Details of employee)

WELFARE SECTION (Canteen, transport medical scheme)



(Chart no 2)

The main functions are:

Established section

Recruitment & selection

ITI has separate wing under HR department for recruitment of manpower. They have a set of procedures for recruitment. The ultimate aim of this wing is to deliver the suitable talent available. They aim at placing right candidates at right job.

The company inducts skilled and professionally qualified man power at various levels in technical, HR, finance, materials management and medical areas through all Indian selection procedure. Candidatures recruited at an induction level in technical, HR, and finance is provided both induction and on - the - job training before the placement. Senior levels of executives are directly posted to project areas.

The ways in which candidates are recruited to the organisation:

By employment exchange

All in India recruitment

Direct corporate requirements

Contract labour is selected through test and interview on three years contract basics for diploma and engineering graduates through all India test. Initially security forces and fire force are recruited through CSF, but now it's recruited from Ex-servicemen. Minimum entry age for job is 18 years. Beside this company also recruits apprentices (diploma holders) for 1 year programme, it is given after the test conducted by B.O.A.T.

Transfer, rotation and placement of employees in consultation with divisional heads

Wage and salary administration

Performance Appraisal

The appraisal system is one of the essential tools for rewards as well as for deciding the career growth of the officer. Performance appraisal is formulated with the emphasis on assessment of executives and other employees to ensure their growth and more opportunities in the company.

The company has structured system to recognize and encourage individuals and ensure excellence in performance. Under the scheme, individuals and teams are given cash awards and commendation letters for their outstanding and exemplary work.

The appreciation of the employees is done through:

Corporate performance award

Service award

Commendation certificate

Nomination for prime minister award

Welfare section

The very logic behind providing welfare schemes to the employee is to create efficient, healthy, loyal and satisfied labour force for the organization. As part of pay and perks, ITI extends many welfare facilities to its employees and these include canteen, township, education, transport, medical, crèches, and scholarships to the children's of the employees. The company has fully fledged hospitals in some plants for free treatment for employee and their dependant family members and also "Authorised Medical Attendant" scheme in all plants, regional offices and GSM projects for employee's health care. Under the scheme most of the government and private super speciality hospitals in India are recognized.

Industrial Relation

Industrial relation operates only within the Organization. The Inter organizational relation is handled by the corporate cadre. 60 to 70 % of management time is lost in resolving IR issues. Therefore the H.R department is of paramount importance.

The main functions are:

Communication between management and trade unions

Grievance handling

Settlement of dispute

Handling disciplinary action

Safeguarding Employee rights

Career related issues like promotion, transfer & rotation

Resolving daily petty issues

Public Relation

Public relations (PR) are a field concerned with maintaining a public image for businesses, non-profit organizations or high-profile people. The main goal of a public relations department is to enhance a company's reputation. Staff that work in public relations, or as it is commonly known, PR, are skilled publicists. They are able to present a company or individual to the world in the best light. The role of a public relations department can be seen as a reputation protector.

The business world of today is extremely competitive. Companies need to have an edge that makes them stand out from the crowd, something that makes them more appealing and interesting to both the public and the media. The public are the buyers of the product and the media are responsible for selling it.

Public relations provide a service for the company by helping to give the public and the media a better understanding of how the company works. Within a company, public relations can also come under the title of public information or customer relations. These departments assist customers if they have any problems with the company. They are usually the most helpful departments, as they exist to show the company at their best.

PR also helps the company to achieve its full potential. They provide feedback to the company from the public. This usually takes the form of research regarding what areas the public is most happy and unhappy with.

People often have the perception of public relations as a group of people who spin everything. Spin can mean to turn around a bad situation to the company's advantage. It is true that part of the purpose of public relations is to show the company in a positive light no matter what. There are certain PR experts that a company can turn to for this particular skill.

The public often think of PR as a glamorous job. Public relations people seem to have been tarred with the image of constant partying and networking to find new contacts. The reality is usually long hours and hard work for anyone involved in public relations.

There are certain skills necessary to work in the world of PR. These include a very high level of communication skills, written and verbal. The PR person must also be very adept at multitasking and time management. He or she may also have some form of media background or training in order to understand how the media and advertising work. Organizational and planning skills are also important in public relations.

The PR worker must also be able to cope very well under pressure. He or she must have the ability to cope with a barrage of questions from the media and the public. If a company comes under critical attack, it is the PR department who must take control of the situation. They must effectively answer the criticism and turn it around in order to protect the company's reputation.


Amity University has awarded ITI for "Best Intellectual Human Resource Utilization Practices" for 2011 at the 8th annual Global HR Summit held from September 22-23 at its Noida campus.

Other HR Service

Control dak (post) dispatch

Collection of dak

Booking of dak through postal services i.e., by registered posts, speed posts, registered parcels

Booking of parcels through railway mail service.

Booking of dak through courier agency.

Distribution of office copy to concerned offices.

Processing/verification of bill received from courier agency for payment.

Procurement/issue of office stationary items and printed terms.

Collection/consolidation of annual requirements received from all the departments/office of RB plant.

Submission of consolidated statements of annual requirement to prescribed committee.

Rising of purchase requisitions of various items based on above approval to purchase department.

Coordinate / follow up with purchase department for procurement.

Inspection of the items for quality assurance.

Inventory control / issue of the item.

Arrangement of urgently required essential item.

Coordinate with the IED / follow up with the printing section for timely publishing of printed forms.

Inventory / issue of printed forms as per specifications of IED and procedures lay down by the management.

Other miscellaneous assignment of HR service

Provision of vehicle stand service in factory premises for motor cars, two wheelers, bicycles, etc.

Provision of washing facility.

Procurement / issuance of soap cakes to the eligible staff working in the production department.

Processing of claims received from ITI parivar.

Repairing of office furniture's and other equipment issued to the senior executives.

Procurement / issue of new office furniture's and subject to the budget and financial position.

Provision of calculators, crockery items, to various department / senior executives / conference and meeting as per actual requirement.

Other miscellaneous works as assigned by the management from time to time.


1. India's first public sector company established in 1948

2. The nation's first Electronic Switching Systems Production Unit.

3. The Company has achieved a turnover of Rs. 437 Cr. in the quarter from 1st January, 2012 to 31st March, 2012 as against Rs. 262 Cr. in the corresponding period of the previous year, thus registering a growth of 70%

4. First Indian company to manufacture BTS & other infra products for GSM / WiMAX

5. Level 4 Security for assembly for SIM Cards, NPR Cards and production of 18 million sim cards per annum.

6. Palakkad is 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.


This Organization Study was an attempt made to gain knowledge regarding the functional as well as managerial aspects of INDIAN TELEPHONE INDUSTRIES in its various departments. Moreover, it helped me to get familiarized with the real world organization system and to understand the decision making process in the organization.