Iti Plans Consultancy Foray To Generate Business

Indian Telephone Industries Ltd (ITI), a public sector unit, is teaming up with Telecom Consultancy of India Ltd (TCIL) to undertake communication projects on turnkey basis and provide consultancy services to the railway, power and oil sectors.

ITI has developed a new technology in railway communication and signalling which is expected to reduce train accidents. The security device developed by ITI will help the railways automatically locate moving trains at any point.

The company will use global state interlocking devices in the communication and signal equipment it would supply to the railways, ITI sources said. This is also expected to strengthen the security of railway stations.

 

Were adopting ourselves to newer technologies since the market now exists for them in the country now, ITI sources said.

In another development, ITI has decided to sell its telephone equipment directly to the public against the normal practice of supplying it to the department of telecommunication (DoT). As part of this plan, ITI will step up its production of telephone instruments from 1 million pieces per year to 1.5 million during 1997-98.

This will be achieved without any major investment by bringing down material costs and streamlining production process. It will make us more competitive in the private market, sources said.

To tap new markets, the company has also decided to tie up with cellular and private telecom services companies.

Currently, it is working on converting its existing 40 branch offices and six regional offices into a full-fledged marketing network. This will give a boost to its business in the area of switch mode phone supply (SMPS).

Our plan is to increase non-DoT market by improving product quality and expanding our marketing networks, ITI said.

At present, ITI depends on DoT for 88 per cent of its income. Of the remaining 12 per cent of non-Dot business, most of it comes from supplying communication equipments to the various internal and para-military security forces.

ITI said its diversification programme will not limit its regular business with the countrys internal security forces.

The company is also in the process of appointing a private consultancy firm to enable it `completely turnaround by 1998-99 and become profitable. This is expected to bring the focus on material and finance management, besides the non-DoT market.

Were talking to several agencies. Since the task is too big, we expect to rope in a couple of consultancies together to work out a strategy for us, the company said. ITI is currently negotiating with several agencies for this purpose.