CONTENTS OF THE PROJECT

CHAPTER-1:

1.1 General introduction of industry.

1.2 Origin and development of the industry.
1.3 Growth and present status of the industry.
1.4 Future of the industry.

CHAPTER-2:

2.1 Origin of the organization.

2.2 Growth and development of the Organization.
2.3 Present status of the Organization.
2.4 Functional departments of the organization.
2.5 Organization structure and Organization chart.
2.6 Product and service profile of the organization competitors.
2.7 Market profile of the organization.
CHAPTER-3:

3.1 Statement of Research problem.

3.2 Statement of Research Objectives.
3.3 Research design and Methodology.
3.4 Analysis of data.
3.5 Summary of Findings.

CHAPTER-4:

4.1 Summary of Learning Experience.

4.2 Conclusions and Recommendations.

ANNEXURE-1:

ANNEXURE-2:

BIBLIOGRAPHY-:
 CHAPTER-1:

1.1General Introduction:-

Indian Railways is 150 year old. It is largest railway system in world under one
management. It is a lifeline of country. It is biggest civilian employer in the world .No
strike in last 30 years in spite of 17 lakh workers. Always targeted by public during
any rally, agitation etc. Indian Railways covers 64000 of route km along length &
width of the country .It runs 12000 trains every day .it carry 1.4 crore passengers
& 16 lakh tonnes of goods every day.It is fuel efficient system. Railways has 7500
engines,38000 coaches & about 2.5 lakh of wagons.7000 stations & about 500
computerized passenger reservation centers.1 lakh km of track.17 lakh
employee(10 lakh in Group C) including 10000 officers.6 lakh staff Qrs .Biggest
township Kharagpur has 12000 qrs .

The first proposal for a rail system was initiated in 1832 in Madras, but due to
financial constraint it never saw the daylight. The East India Company then decided
to assist private entrepreneurs who wished to establish a railway system in India,
even if it was not commercially feasible. In 1845, two companies the East Indian
Railway Company operating from Calcutta and the Great Indian Peninsular Railway
(GIPR) operating from Bombay were formed. The first train to be commissioned to
service was on December 22, 1851 for hauling of construction material in Rourkee.
But the first passenger train started operations on April 16, 1853 between Bori
Bunder, Bombay and Thana covering a distance of 34 km. It marked the beginning
of railways in India. The British government then inspired private entrepreneurs to
set up rail link under a plan that would provide them with an assured return of 5%
during the initial years of operation. But once the rail link was completed, the
ownership would pass on to the government, though the concerned company could
operate the rail link. In 1901 the British constituted the Railway Board. It worked
under the department of Commerce and Industry. For the first time after the railway
board was constituted the railway started making profit. By 1907 all the railway
company was taken over by the Government. By 1920 the network of Indian railway
had increased to 61,220 km. Realizing a need for a central management, the
government took over the functioning of the railways and detached the finances of
the railways from other governmental revenues. Between1920 to 1929 the railways
witnessed enormous growth, but were severely crippled afterwards by the great
depression and Second World War. By 1946 all rail links were taken over by the
government.
After Independence

In the initial years after Independence, India faced a huge challenge in terms of rail
network. It received a dilapidated rail network. Around 40 per cent of the rail link went to
Pakistan, a large no of rail lines had to be rerouted through Indian territory. A majority of
the rail line available today were laid by the British. Insufficient investment and
inefficient management and maintenance have greatly restricted growth in route length.
The former Indian princely states had a total of forty two separate railway systems,
including thirty two lines amounting to 55,000 km. They were brought under the purview
of the Indian Railways.In 1951 the government mooted the idea of forming zones and a
total of six zones were initiated. As the Indian economy developed, railway production
took place within the country. By 1985 steam locomotives were phased out. In
1987,computerisation of reservation was carried out starting with Bombay.

Railways Post Reforms

Post reforms in the 1990's the progress of the railways was not satisfactory. The
Rakesh Mohan Committee report suggested that the railways needed a complete
overhaul if any progress had to be made. Since it was not that easy from a political point
of view, it was not given due importance by the inner circle in the railways. But with the
appointment of Mr. Lalu Prasad in 2004 as railway minister, things changed
dramatically. In the next five years the minister and his team worked out a strategy to
bring about a complete turnaround in the working of the railway.

The turnaround was possible due to

Higher freight volumes.Increased occupancy in passenger trains.Monitor costs and

reduce tariffs.The railways have managed to improve their market share and operating
margins. The government has been credited with pursuing inclusive reforms, without
comprising on the social obligation. The railways have been applauded for improved
customer service and for reducing passenger fares.

Some of the salient features of the reform are:

A well planned strategy to build around capacity generation through optimization of the
existing infrastructure and assets.Adopting a different approach to the social and
commercial segment of the traffic.Increasing the passenger carrying capacity of
important trains. Improved operational efficiency meant the unit cost ofoperation
reduced.Dynamic and market driven tariff policy linked to seasonality and price elasticity
of demand.The policy of overhaul increase in freight rates has been replaced by a
system of differential tariff based on market conditions.Tremendous growth in traffic
volumes, revenues and surpluses has proven the fact that the process of globalization
hasbrought positive results for everyone concerned.

Indian Railways (IR), a state-owned railway company, had a near monopoly in the
country's rail transport. It was also the second largest with 63,028 route kilometers,
108,706 track kilometers and busiest rail networks in the world. IR was the world's
largest commercial utility employer, with more than 1.6 million employees.A legacy from
the British rule, IR had been a socio-economic entity, striving to achieve its justifiable
economic existence. With the liberalization of Indian economy since 1991, the policies
of the railways became obsolete. To become economically viable in the competitive era,
IR faced hurdles like duality of objectives, hazards of safety considering its
organisational size and the emergence of competition from other means of transport like
airlines, particularly low cost airlines. In 2001, IR was written off as the burgeoning
responsibility for the government. Experts opined that by obliging to political and social
agendas, IR failed to utilize its capacity and achieve its profit goals. Amidst criticism, IR
stabilized its financial situation in 2002-03.In 2004, Lalu Prasad Yadav (Lalu), a famous
political leader, was given charge of Ministry of Railways, one of the most sought after
portfolios in the government owned utilities of India. He proved to be a dark horse, as
under his leadership, IR adapted and implemented cost effective strategies to raise the
revenues. For the first time the passenger fares and freight rates were not hiked to
increase revenues but the, per train load was increased by 4-5 tonnes on selected
tracks to yield higher revenue. Such measures combined with a “value for customer”
philosophy and considerations of IR as an economic enterprise, were elementary in
bringing about Indian Railways’ turnaround. The Railway Budget 2006-07 had great
plans for expansion and growth for railways and a landmark Dedicated Freight
Corridors.

Objectives:

To understand the dynamics of rail transport industry in India and the monopoly of
Indian Railways.
To analyse the conflicting goals of Indian Railways as a public utility organization vs. a
self run profitable organization.
To scrutinize the leadership roles played by various politicians and its impact on the
growth and development of Indian Railways.
To debate on the future strategies of Indian Railways.

Keywords :

Indian Railways (IR); East India Railway Committee; Operations of IR; Social
responsibility versus profitability; Bureaucracy; Operational inflexibility; Railway board;
Subsidized fares; Growth Strategies.
Industry Profile:-

1.2(a) Origin and development of the industry:-

History
Indian Railway History is spread well over 200 years which started from introduction of
steam engines by British government to current trains running at 150 kmph.

Indian railway history

The plan to introduce a railway network, transformed the entire Indian history. This
pioneering plan of action was first introduced in 1832, but no measures were taken into
consideration. In 1844, the private industrialists were permitted to initiate a railway
system. Governor General of India, Lord Hardinge proposed this plan to introduce the
railway system. East India Company along with two private companies initiated the
establishment of rail system.

Origin of the Indian Railways

In 1851, 22nd December, the first rail came into being at Roorkee. After a year, got
introduced first passenger rail service between Thana, Mumbai and Bori Border. This
railway track covered around 34 kilometers distance. Since its inception, the Indian
railway service never looked back.British Government advanced towards several private
investors to persuade them to enter the venture, with a promise to obtain 5% annual
return initially. The railway network in 1880 acquired a mileage of around 9,000 miles,
working mostly through Calcutta, Madras and Bombay.

Development of the system

India, by 1895 had started industrializing its own engines. In a short span of time,
various kingdoms started their independent railway systems. The network of railway
system extended up to Andhra Pradesh, Rajasthan and Assam. In the year 1901, a
board of railways was formed,which worked underneath the supervision of Department
of Commerce and Industry. The board comprised of railway manager, an agent and a
Chairman respectively.

Railway gaining popularity

In 1907, many railway companies came under the control of the government and started
to draw efficient profits. Consequently, the primary electronic locomotive materialized in
the subsequent year. At the time of war, the conditions of railway became worse. The
government.
1.2(b) Growth And Present Status Of The Industry:-

The railways have devised a planned strategy to remove bottlenecks and increase
capacity to meet the demand. The key areas of focus would be up gradation of
infrastructure,modernization of wagons technology,advanced signaling and
telecommunication, induction of high horse power locomotives, grade separation and
usage of information technology to decrease transit times and reduce unit operational
cost. The railways also propose to construct state of the art passenger and freight
terminals bench.Over the next 5 to 10 year the government plans to give utmost priority
to low cost, rapid pay back and high return investments with the view of speeding up
works on doubling railway line, port connectivity, gauge conversion, signaling.and
telecom, renewal of assets and modernization of passenger terminals.The government
has initiated private investments in major stations to create world class passenger
amenities and services.There is an increase in demand for coaches. The government
has proposed to meet the increase in demand partly through increase in the capacity in
the existing production units and partly by setting up a new manufacturing unit through a
joint venture under Public Private Partnership (PPP).The railways are also planning to
build a super specialty hospital in Patna. If successful, the concept would be extended
to other parts of the country.

Research Overview
This Frost & Sullivan research service titled Strategic Analysis of the Growth
Opportunities in the Indian Rail Industry provides current market size, forecasts, as well
as the key market drivers and restraints. In this research, Frost & Sullivan's expert
analysts thoroughly examine the following markets: passenger rail services and
coaches, freight rail services and wagons,rail infrastructure, locomotives and wheels, as
well as signaling systems and technology.This analysis is available through the
publisher's Automotive & Transportation Growth Partnership Services program. With
continuous access to intelligence and resources from all seven perspectives of the
Complex Business Universe, the Growth Partnership Services program ensures that
you and your Growth Team™ are able to maintain a 360 Degree Perspective of the
market. This comprehensive, objective information allows your company to mitigate risk,
identify new opportunities, and drive effective strategies for growth.

Market Overview

Indian Rail Industry Chugs Along with Increased Private Participation and Renewed
Focus onFreight and Infrastructure Development.The Indian Railways, which runs more
than 18,400 trains, covering 6,856 stations daily, is all set to benefit from higher private
participation. The magnitude of the Indian Railways’infrastructure upgrade and
modernization program has made private participation an integral Strategic Analysis of
the Growth Opportunities in the Indian Rail Industry –

component of all developments for key initiatives. The ongoing and proposed Metro Rail
projects in several Indian cities, including Delhi and Mumbai, have encouraged large-
scale private participation in the areas of providing engines and coaches as well as
infrastructure development for both domestic and multinational companies. These
projects can expand the reach of railways as a preferred mode of passenger
transportation. Apart from persuading private participants, the Indian Railways is also
looking to bolster its revenues through the use of technology and investment in port
connectivity and rail infrastructure. Meanwhile, the opening up of the container rail
segment for private participation has given a huge boost to the cargo segment. Private
investments have gone a long way in reducing the infrastructural limitations of the
Indian Railways and creating opportunities in the extremely profitable freight
transportation services. 'Already, the 15 approved operators have gained high volumes
of freight from various industries, including transportation of cars by rail, which was not
done earlier by the government-owned Container Corporation of India Ltd.(CONCOR),'
says the analyst of this research. 'Once the ongoing project of Dedicated Freight
Corridors becomes a reality, several more participants are expected to join the
competition of container rail operations and fulfill the vast demand for rail freight
services.'Acknowledging the business opportunity presented by the steadily growing
freight segment,the Indian Railways plans to invest in connectivity for all major ports.
This will allow cargo from/to the hinterlands to be transported directly from/to the port to
avoid the bottlenecks of road transportation and existing rail routes. India has the
second largest railway network in the world, covering over 63,600 km and carrying
about 30 percent of the nation’s cargo.'However, within the rail network, some key
routes such as Delhi-Mumbai and Delhi-Kolkata have a utilization of more than 140
percent,' notes the analyst. 'To add to the congestion,there are no dedicated routes for
cargo traffic and hence, the cargo traffic not only subsidizes the passenger traffic, but is
also accorded lower priority.'After being written off as a financially unviable organization
by industry experts, Indian Railways has made a dramatic turnaround in the last few
years. There has been a paradigm shift from the tariff regime (using freight services to
subsidize passenger services) to a focus on freight as a primary growth driver.
Meanwhile, Indian Railways’ customer-friendly approach to passenger services has
ensured that both passenger as well as freight revenues will escalate, throwing open
numerous opportunities for companies in diverse segments of railways. India’s
emergence as a manufacturing hub for various sectors has buoyed the economy and
attracted investments in infrastructure as well as hiked demand and consumption. 'A
sharp rise is expected in the traffic flow between manufacturing centers,ports, and
inland container depots (ICDs) over the next four to five years,' observes the analyst.
'Owing to the cost benefits of rail transportation, the Indian Railways is likely to gain
significant revenues from these trends.'

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this
research:
- Passenger rail services and coaches
- Freight rail services and wagons

Strategic Analysis of the Growth Opportunities in the Indian Rail Industry - Market
ResearchReports -...
- Rail infrastructure
- Locomotives and wheels
- Signaling systems and technology

Technology
The following technology is covered in this research:
- Railway signaling and communication technologies

Economic Growth boosts Indian Railways’ Revenues

Riding high on the rebound in economic activity, Indian Railways recorded a healthy
growth in earnings during the first two months of the current fiscal. Revenue earnings
from passengers rose at a faster 7.5% compared to the 7.2% figure in goods earnings.
However, goods account for over 65% of the railways’ total earnings.Coal accounts for
the largest chunk of the total goods earnings of the railways. While transport of coal
rose 7.2% in FY10, this growth decelerated to 3.1% in April 2010. The reason for this
lower growth has always been a topic of debate.While Coal India — India’s largest
thermal coal producer — claims there was a shortage of rakes to transport coal, an
Indian Railways statement shifted the blame, saying Coal India had moved from a
linkage regime to a fuel supply agreement (FSA) regime.It had been decided by an
inter-ministerial group that all FSAs will be routed through the ministry of railways to
take into account logistics issues. Apparently, CIL did not comply with the directive,
thereby hampering railways’ plans for movement.Traffic movement of fertiliser,
petroleum oil products and cement surged 9.6%, 15.1% and 13.8%, respectively

1.2(c) Future of the Industry

Future Of Telecom Industry

By 2012, half of the 20 largest carriers will establish new  
lines of business outside telecom, such as media
entertainment, advertising and managed services, but more
than half will fail, says Gartner.

Wednesday, November 07, 2007:  Traditional telecom carriers can no longer rely on
conventional competitive tactics such as price cuts, promotions and basic product
bundling to maintain their edge in the consumer segment, warned Gartner. The
research firm also said that non-traditional telecom players like Apple, Google and
Nokia, which have a strong understanding of consumers, are adopting new business
models that are forcing carriers to reassess their approach and service delivery. Faced
with this competition, traditional telecom carriers will attempt to transform themselves by
primarily exploiting content, but Gartner predicts that more than 80 per cent will fail.
"The players that will be amongst the successful 20 per cent will be the ones that
provide a consumer-centric experience, for example, through interactive TV, where
users will be able to chat online while watching their favorite TV programmers," said
Martin Gutberlet,vice,president,Gartner.
Owning infrastructure initially gives telecom carriers some competitive edge but this is
mitigated by non-traditional competitors that don’t own a network but bundle their
services attractively. "As demonstrated by Apple and Google, three new attributes are
coming into play and driving change in the marketplace that the traditional telecom
players must embrace to become successful content enablers, which create and/or
deliver content. They are trust, usability and an exciting customer experience," said Gut
Berlet.In this changing landscape, the winners will be those companies that understand
consumers' needs, focusing on usability and actually giving control back to the users.
The losers will be the ones that focus on overly technical product differentiation that the
majority of consumers will not understand and therefore not use.
Gartner predicts that by 2012, half of the 20 largest carriers will establish new lines of
business outside telecom, such as media entertainment, advertising and managed
services, but more than half will fail. Further, leading carriers in developed markets such
as Vodafone and BT will be able to derive at least 15 per cent of revenue from such
non-traditional sources.

"To uncover adjacent markets, carriers must leverage their unique assets, in areas such
as billing, secure authentication and quality of service, and develop multiple
partnerships to add creative talent to existing operational expertise," added Gartner.

According to Gartner, three business models are emerging that will help carriers remain
competitive through 2012. Content Innovator is entering the media market; Embracing
this model, content innovators produce and own their content and will use exclusive
content to differentiate themselves; Aggregator -- the aggregator model will not involve
the creation of content, rather the sourcing and packaging of it. Bit Pipe Carrier, the third
model, represents a stable business model based on connectivity as a utility but with
both lower revenue and lower margins than today.

Rather than emphasizing content and services, the bit pipe model is driven by
operational excellence. In order to maintain profits amidst declining revenues, carriers
that adopt a bit pipe approach are expected to reduce their core operational staff by at
least 20 per cent by 2012, driven by internet protocol (IP) technology, infrastructure
consolidation, process automation, operational outsourcing and cutthroat competition.
"The risk of this model is making the wrong network investment decision," Gut Berlet
said.

He added, "We envisage that carriers will use any combination of the three business
models. A company that has successfully deployed this approach is Telephonic, which
was once a content innovator and following its sale of Eudemon became an aggregator
and a bit pipe carrier."

"The telecom industry in 2012 will be very different from the one we know today.
Developing strong partnership skills, focusing on customer user groups, embracing
Internet services and starting to talk the language of Web 2.0 will enable the carriers to
thrive well into the future," concluded Gut Berlet.
 CHAPTER-2:

2. (a) Origin Of The Organization:-

Date of Establishment 1781

Revenue Not Available

Market Cap  Rs. 1195.20 crores (April 22, 2008)

Corporate Address  20,21,22,Nityadhan Mukherjee Road

Howrah-711101

Regional Offices 22B,RAJA SANTOSH ROAD

KOLKATA-700027

Overview ITI Ltd. offers products and solutions related to

switching, transmission, and access and subscriber
premises equipment. It produces broadband infra
equipment, NGN (New Generation Network) and
SDH (Synchronous Digital Hierarchy) products and
mobile infrastructure equipment, based on GSM
technology. It also assists in the installation and
commissioning of equipment, turnkey jobs and gives
 out value-added services. It generates network
management systems, encryption and networking
solutions.

The company has signed a pact with BSNL for

building a V-SAT based network in Ku band for IP-
based satellite broadband services. It has also
assisted MTNL to expand Internet Services
equipment. It has worked for TCIL in the CDMA-
WLL (Wireless in Local Loop) turnkey project and for
India’s Defense forces in Secure communications.

S.No Name Designation

1 Sri W.K. Pradhan Chairman and Managing director

2 Sri Dayanidhi Marandi Managing Director

3 Sri O.P.Tailor Director (Finance)

4 Sri Vinod Kumar Director

5 Sri Shyamal Ghosh Special Director(BIFR)

6 Sri S.K.Bhowmik General Manager, Howrah Works

7 Sri. Santanu. Sarkar General Manager, Burnpur Works

8 Sri Gautam Mitra DGM (F & A) & Company Secretary

9 Sri Arabinda Dutta DGM (P & A)

10 Sri S.K.Chatterjee DGM (C & MM)

11 Sri Asim Bhattacharya DGM (CC & P)

2.2 Growth And Development Of The Organization:-

Burn Standard is the symbol of diversified activities. It has two large engineering works
in West Bengal, one refractory works located at Salem, Tamil Nadu and the Chennai
Project Division. It employs over 2000 persons, out of which about 1000 belong to its
two engineering units. Since nationalization it has registered a creditable growth and the
trend is continuing. The turnover of the Company has increase from Rs. 79.83 crores in
1982-83 to 295.57 crores in 1996-97 recording a growth of over 144.98% in 15 years
(approx).

Organization Today:-

Burn Standard Company Ltd (BSCL), A Govt. of India Undertaking was formed with the
merger of two well known engineering organizations namely Burn & Co. Ltd. and Indian
Standard Wagon Co. Ltd. following their nationalization in April, 1975. Subsequently,
after the formation of Bharti Bhari Udyog Nigam Ltd., (BBUNL) a holding company
under the Ministry of Industry, Govt. of India in 1987, Burn Standard became a
subsidiary of BBUNL along with six other Eastern India based Engineering Companies.

During the early days Burn undertook building and contracting work. Subsequently the
firm ventured into the field of railway engineering and altogether new development in
the country's economy during the 50s of the last century. With the rapid expansion of
activity in Railways. Burn purchased about 11 acres of land at Howrah Works. It started
manufacturing railway rolling stocks to cater to the increasing demand of Indian
Railways. Today, Howrah Works cover an area of 16.172 hectares with covered
accommodation of 80,215 Sq Metres and Burnpur Works has an area of 21 hectares
with covered area of about 45,000 Sq. Mtrs.

2.3 History of the Organization:-

Burn Standard Company Ltd., is one of the oldest and foremost engineering Company
and the largest wagon builder in India. The wagon building activities are concentrated in
the two engineering units at Howrah and Burnpur situated in west Bengal, India.

Several thousands of wagons have been manufactured and supplied to Indian Railways
over the last 60 years or so and still being supplied. Whether it is four wheeler wagon or
eight wheeler bogie wagon, all major design have been fabricated by this Company.

Apart from supplies to Indian Railways, The Company has also manufactured and
supplied to supply special purpose wagons to various core sectors like power, steel &
Plants in India.

The Company is a subsidiary of Bharat Bhari Udyog Nigam Ltd., (BBUNL), the largest
group in India manufacturing Rly. Wagons, Coaches etc. with decades of experience
and a large number of skilled manpower backed by professional management.

The Company have supplied to M/s. National Aluminium Co. (NALCO) till date 514
numbers of special purpose wagons fitted with Air Fluidising System for bulk movement
and quick unloading of Alumina powder. These wagons are plying between NALCO
Damanjodi Factory to Angul Factory in Orissa and Visakhapatnam port in Andhra
Pradesh, India. These BTAP Type wagons are eminently suited for bulk movement of
powdery materials like cement, fertilizer etc.
This Company has also supplied 225 numbers of sophisticated Bottom Discharge
Wagons to National Thermal Power Corporation (NTPC) New Delhi for their various
plants in the count.

ITI  At A Glance

Strengths Of ITI – The Telecom Pioneer

        India’s first telecom equipment manufacturer.

Over 60% contributions to the existing national telecom network.

        Total telecom solutions provider.

Recognized as Top Turnkey Services Company.

        Multi-location state-of-the-art manufacturing facilities accredited with ISO

9001:2000.

        Complete range of telecom products, value added services and customized

ILS to a variety of users.

        Countrywide marketing and customer care centers.

        Strategic alliances with global telecom/IT majors

Logo

Total Solutions for Global Communications

2.5 Organization Structure And Organization Chart:-
2.6 Product And Service Profile Of The Organization Competitors:-

  PRODUCTS

DWDM PRODUCTS

Unitrans ZXWM M900

SWITCHING
OCB-283   ISDN   EPABX   IP-TAX   SSTP

TRANSMISSION
Satellite, Optical, Microwave, VHF /UHF

BROADBAND EQUIPMENT

ADSL, WiMAX, G-PON, EDW AS

CUSTOMER PREMISES EQUIPMENT

IFWT, ADSL Modem, CLI Phones

GSM-FCT (Fixed Cellular Telephone), WiMAX CPE

IT AND CONVERGENCE

Educational ERP

SMPS Power Plant Indoor & Outdoor

Application specific software in various domains

Network Management System

Miscellaneous
Smart/SIM Cards, Power Plants, Banking Automation Equipment, Non-Conventional
Energy Systems, TWT-HPA

GSM / CDMA

Optical Transmission

VSAT
Legal Disclaimer | Designed by: Corporate IS & IT Group, ITI LIMITED

Defense Products

OWS -ORDERWIRE SECRECY

Order wire secrecy: (OWS) Order wire Secrecy encrypts

and Decrypts Voice calls between operators on Radio.
During alignment of Radio and setting up of the link the
voice information is secured by this encryptor. It uses
state of the art Components with Proprietary algorithm. It
has additional feature of working in repeater and
Regenerator mode during long hop working. It can work in
Broadcast mode as well as Voice call mode. It can be
customized to work with any type of radio. The system
design also use of this in static as well as Mobile
application.

MIL PCM SECRECY

Mil PCM Secrecy: MIL PCM Secrecy is a ruggedized

encryptor to encryprt and decrypt 2 Mbps / E1 data of
PCM Format. It can accept various types of Signaling
format like CAS, CCS, PRI, ADPCM, ATM etc., It can
work from Internal, External or Recovered clock. It uses
Proprietary algorithm. It meets stringent Defence
Environmental Specifications of JSS 55555 and EMI/EMC
Specifications of MIL STD 461C. It works from 230V AC or
-48v DC. Normally works from AC and in case of failure
automatically switches over to DC working.

ANANDA MK II BEU

ANANDA MK II: (Name to Be corrected in WEB Page)

ANANDA MK II encryptor to encryprt and decrypt 2
Mbps / E1 data of PCM Format. It can accept various
types of Signaling format like CAS, CCS, PRI, ADPCM,
ATM etc., It can work from Internal, External or Recovered
clock. It can also work with Framed / Unframed Data. It
meets QM 333 Environmental Specifications. It works
from -48v DC with duplicated power Supply. It is housed
in a standard 19" sub rack and a main rack can house 4
Such sub racks. Each sub rack carries four independent 2
Mbps Channel effectively this can be used as 8 Mbps
Encryptor.

STM1 ENCRYPTOR

STM 1 Encryptor encrypts/decrypts SDH formatted data

at bit rates of 155Mbps. It accepts either electrical /
Optical Interface as clear data input and gives out
encrypted data again as Electrical or Optical Interface.
Works with proprietary algorithm and Key management.
The encryptor provides NMS interface for monitoring and
alarm indication. It is equipped in standard 19” sub rack.
 While working on long haul Optical lines it has in built
facility of Optical regenerators. Unit has low power
consumption and works from -48v DC Power supply.

 BEU IP

BEU IP is designed and developed by ITI to encrypt /

decrypt Internet Protocol (IP) data at layer 2 / layer 3 of
OSI layer. It can work in either Tunnel mode or Transport
mode. Uses Proprietary algorithm and key Management.
Designed to accept data from LAN / WAN and give a
throughput of 10/100 Base T. On media side it can work
on Optical / Satellite media. The unit is available as table
top model or as standard 19” sub rack construction in 1’U’
height.

FAX ENCRYPTOR

FAX Encryptor is terminal end Secrecy device

designed to encrypt / decrypt Voice / FAX / data. It
accepts FAX data from either G3 FAX Machine or
Super G3 FAX Machine and encrypted data is sent
on 2W PSTN line. When switched to Voice
encryption it encrypts / decrypts analog Voice data.
It also can encrypt / decrypt digital data at 9.6 Kbps
rate through RS 232 interface. Uses Proprietary
algorithm and key Management. The unit is
available as standard 19” sub rack construction in
1’U’ height. It works from either 230V AC supply or
from -24V DC supply.
2.7Market Profile Of The Organization:-

India’s first Public Sector Unit (PSU) - 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.
Secure communications is the company's forte with a proven record of engineering
strategic communication networks for India's Defense 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.

COMPETITORS

Company Sales Current Change P/E Market 52-Week

(Rs.Cr.) Price (%) Ratio Cap. High/Lo
 (Rs.Cr.) w

Precision 25.65 21.80 7.39 7.92 30.19 30/12

Electronics Ltd.

Minot -1.01 4.75 4.86 0.00 4.58 8/3

Communication Ltd.

GTL Infrastructure 220.84 38.20 2.69 1273.33 3614.83 50/28

Ltd.

Valiant 11.36 29.90 2.05 9.22 22.49 40/16

Communications
Ltd.

Himachal Futuristic 349.59 13.35 1.52 0.00 591.13 18/6

Communications
Ltd.

GTL Ltd. 1450.90 311.00 1.27 26.84 2945.89 317/144

Nelco Ltd. 197.58 62.60 0.24 0.00 142.84 69/21

FCI OEN 251.81 694.50 0.20 18.02 437.48 -/-

Connectors Ltd.
Kavveri Telecom 140.73 57.05 0.09 4.94 56.04 107/21
Products Ltd.

Shyam Telecom 216.13 68.40 -0.51 81.62 77.09 93/35

Ltd.

Astra Microwave 117.22 88.10 -1.07 32.84 477.00 96/33

Products Ltd.

Punjab 7.45 40.00 -1.48 27.74 48.09 41/12

Communications
Ltd.

Mobile 32.08 2.55 -1.54 74.56 30.35 3/1

Telecommunication
s Ltd.

Krone 100.39 103.10 -1.81 8.46 47.43 109/48

Communications
Ltd.
 CHAPTER-3:

Research Methodology:

It is a way to systematically solve the research problem. Research methodology

may be understood as a science of studying how the research is done
systematically.

STUDY OF SELECTED RESERCH PROBLEM

A STUDY ON AN EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM

FOR EXECUTIVES IN “ITI LIMITED”

3.1 Statement of Research Problem:-

1. Identifying the existing method of performance appraisal for

executives.
2. How the performance appraisal linked with the salary increase , transfer,
promotion, demotion or termination.
3. What are various measures adopted by I.T.I. to tell how employee is
performing the job.
 4. Whether the superior uses the performance as a tool for coaching &
counseling the executives.
5. Maintaining the individual or group development by informing the
employee of his performance standard.

3.2 Statement Of Research Objectives:-

The project is directed towards an aim on an effectiveness of performance appraisal

system for executives in ITI LTD. The objective is to find out possible performance
appraisal systems

For executives in the ITI LTD. .

The main and the sub objectives are as given below.

1. To study the existing performance appraisal system for executives in I.T.I.

executives.
2. To ascertain the views of I.T.I. executives about the present performance
appraisal in I.T.I. ltd Bangalore.
3. To know the changes that executives want in the present performance
appraisal system .
4. To suggest recommendations for the improvement of present appraisal
systems.
3.3 Research Design And Methodology:-

A study and understanding of the organizational profit of ITI LTD was initially
being carried out. The products manufactured and their contribution will be
analyzed. Thereafter the in plant training will be carried out at the corporate office
of ITI-LTD(Bangalore) to get aware of its corporate working and departmental
working like export, finance, R & D, Marketing, Project planning, operational
planning, personal relation and finally to administration. Each of the various
departments will be carried out individually and studied.

Research methodology has following steps:-

Step: 1 To decide the objective of the study.

Step: 2 To design research design.

Step: 3 To determine the source of data.

Step: 4 To design data collection form.

Step: 5 To determine sample size and sample design.

Step: 6 To organize and conduct fieldwork.

Step: 7 To process and analyze the collected data.

Step: 8 To prepare the research report.

Explanation

Step: 1 To decide the objective of the study to be carried out.

Step: 2 To decided the research design.

What is research design?

Research design is a plan, structure, strategy of investigation conceived so as to obtain

answer to research question and control variance. There are three types of research

design system.

 Explanatory Research.

 Descriptive Research

 Casual Research.

Among the above mentioned types descriptive research design has been chosen.

Descriptive research is to find ad efficient sales force, of FC. In order the study the

characteristics and variables, cross sectional analysis was conducted by using field

survey method . In the process of field survey, a questionnaire was developed and

circulated to the respondents, which formed the basis for entire research.

Step: 3 To determine the source of data.

A detail analysis will be carried out taking into consideration “A STUDY ON AN
EFFECTIVENESS OF THE PERFORMANCE APPRAISAL SYSTEM FOR
EXECUTIVES IN ITI LTD ”

Mode of Data Collection and Information:-

Data is collected through primary and secondary sources. Primary data is obtained

through interacting with the individuals and analyzing the information of them to whom I

met. Primary data is also obtained through a questionnaire by investigating than 50

respondents. The secondary data is obtained through the various books on investment

which are referred by the organization and also through the internet.

Questionnaire Design:-

The questionnaire was designed in such a way that would facilitate the researcher in

getting the required information from the respondent. The questions were framed

keeping in mind the various aspects like financial status, past and present performance

of the individual’s or firm in which uses for analyzing customer preference of financial

product, for regular returns growth etc information has been collected to financial

analysis done by investor .

Primary Data:

Primary data are obtained by a study specially designed to full fill the data needs
of problem at hand. Such data are original in character and generated by the way
of questionnaire feedback.

Tools for Primary Data Collection:

1. Questionnaires.
2. Interview Schedule.
3. surveys

Secondary data :

Data that are not originally collected but rather obtained from published
unpolished sources are known as secondary data. These sources are magazines,
journals, websites, annual reports etc.

Tools for secondary data collection:

1. Website of ITI LTD.

2. Annual reports of ITI LTD.
3. Magazines & journals of ITL LTD.
Sample design:

A sample design is a definite plan for obtaining sample from a given population. It
refers to the technique the researcher would adopt in selecting items to be
included in the sample.

Sample Technique:

Here to conduct the survey the sampling technique used is DELIBERATE

RANDOM SAMPALING of which consists of users of ITI-Executives of corporate
office ITI-LTD(Bangalore) ,the Bangalore plant & NSU (Network System Unit)

Research universe

Research universe consists of executives of ITI-LTD(Bangalore).

Corporate office, Bangalore plant & NSU. (Approx 1000 Executives)

Sample size = 50

(5% of 1000 executives)

Sampling Technique:

Simple Random Sampling:

Under this method whole population is taken as a single composite unit for
purpose of sampling. This method is used for.

The purpose of canvassing the questionnaire.

3.4. Analysis Of Data:

Q1. Table show the gender wise classification of respondent.?

Response No. of respondents %age

Male 70 70

Female 30 30

Total 100 100

CHART-1
 No. of respondents
70

Male
100 Female
Total

30

Inference: - The table and chart show the gender wise classification of respondent the
chart show that 70 % of respondents are male and 30 % of respondent are female.

Majority of respondent are male.

Q2. Are you satisfied with the services of ITI ltd ?

Response No. of respondents %age

Yes 60 60

No 30 30

No idea 10 10

Total 100 100

CHART-2
 No. of respondents

60
Yes
No
No idea
100
Total

30

10

Q3 Do you think the technology change is very big challenge for ITI ltd. ?

Response No. of respondents %age

yes 70 70

No 30 30

No idea 0 0

Total 100 100

CHART-3
 No. of respondents
70

yes
No
100
No idea
Total

30

Q4. Is the chine’s market affecting ITI Ltd. ?

Response No. of respondents %age

Yes 70 70

No 20 20

Sometimes 10 10

Total 100 100

CHART-4
 No. of respondents
70

Yes
100 No
Some time
Total

10
20

Q5. The ITI Ltd is capable of responding to emerging technology needs on its own?

Response No. of respondents %age

Yes 70 70

No 20 20

Some time 10 10

Total 100 100

CHART-5
 No. of respondents
70

Yes
100 No
Some time
Total

10
20

Q6. New trends in telecom sector are challenge for ITI Ltd?

Response No. of respondents %age

Yes 60 60

No 30 30

Sometimes 10 10

Total 100 100

CHART-6
 No. of respondents
60

Yes
100 No
Sometimes
Total

10
30

Q7. Is the government policy very critical for ITI Ltd?

Response No. of respondents %age

yes 80 80

No 10 10

Some time 10 10

Total 100 100

CHART-7
 No. of respondents

80

yes
100 No
Some time
Total

10
10

Q8. Is the ITI Ltd focusing on only few customer and vendors?

Response No. of respondents %age

Yes 80 80

No 10 10

No idea 10 10

Total 100 100

CHART-8
 60

100 Yes
No
Some time
Total

20 20

Q9. The ITI Ltd is sufficiently regarded by long term stake holders to ensure its long
term competitiveness?

Response No. of respondents %age

Yes 60 60

No 20 20

Some time 20 20

Total 100 100

CHART-9
 60
20

20
No
Some time
Total

100

Q10. Should ITI Ltd hire skilled and new potential candidate?

Response No. of respondents %age

Yes 80 80

No 10 10

Can’t say 10 10

Total 100 100

CHART-10
 60
20

20
No
Some time
Total

100

Q11. Are the present trends in telecom sector encouraged to make new joint venture?

Response No. of respondents %age

Yes 50 50

No 30 30

Some time 20 20

Total 100 100

CHART-11
 60
20

20
No
Some time
Total

100

Q12 . The ITI Ltd regularly faced with financial resources challenges?

Response No. of respondents %age

Yes 80 80

No 10 10

Some time 10 10

Total 50 100

CHART-12
 60
20

20
No
Some time
Total

100

Q13. Global telecom player is affecting ITI Ltd business?

Response No. of respondents %age

Yes 60 60

No 20 20

Some time 20 20

Total 100 100

CHART-13
 60

100 Yes
No
Some time
Total

20 20

Q14. Should ITI Ltd produce in own unit?

Response No. of respondents %age

Yes 60 60

No 40 40

No idea 0 0

Total 100 100

CHART-14
 60

100 Yes
No
No idea
Total

40

4.5 Summary Of Findings:

The findings of the study are on the basis of primary data collected from primary
data collected from ITI LTD.

The findings are the inference collected from the various table. It’s the view
point of or opinion that represents the majority of the executives, which have
been summarized.

(a) The study reveals that the majority of executives are P.G.
Degree holders.

(b) the study reveals that majority of the executives of the

Sample size are grade -2 & they have responded well.

(c) The majority of executives fall under the age group of

51-60.
 (d) The majority of the respondents have experience of 25
years and above.

(e) The study reveals that the majority of the respondents

understands the objectives of the current performance appraisal system
of certain extent.

(f) Majority of the executives are satisfied with the current

performance appraisal in the ITI LTD.

(g) The study reveals that that majority of the executives

Feel the performance appraisal system to some extent result in
promotion & retention of the employees.

(h) Majority of the respondents feel that the ability of the performance
appraisal is to access training needs.
(i) Performance appraisal system contributes to the improvement of
communication between superior
& subordinate.

(j) The majority of the executives are of the opinion of the performance
appraisal system in the organization is to have employee growth &
development.
(k) The majority of the executives are of the opinion that the performance
appraisal system should be accessed annually.
(l) Majority of the respondents are of the opinion that appraisal must focus
on both performance & potential.

S.W.O.T Analysis Of ITI LTD

Strength:

 ITI is India’s first post independence public sector enterprise set up in the
year 1948 and it has over 50 years of experience in the telecommunication
industry.
 The organization has a good brand name and reputation among it’s
customers.
 Large work force with technical expertise.
 One of the best infrastructure and R&D
 Technical collaboration with worlds leading telecom companies
 Quick adoption to new technology and latest technology
 Market share of 70% in Indian network

Weakness:

 Surplus Manpower
 Poor Marketing
 Training the ages and less qualified to latest technology is it not liable
 Lack of performance appraisal
 Products are priced very less
 Lack of managerial control
 Lack of motivational factors
 Internal policies
 Resistance to change by same groups of employees

Opportunities;

 Introduction of better and improved technology

 Quality of the products
  Training and development strategic
 Vast Indian rural market for telecom
 Diversification of their business
 Expecting 1200crores project at the end of this year from Defense

Threats:

 Economic policies of the government

 Executive turnover
 Stiff competition with MNC’s
 Promotional opportunities are block
 Deregulation of the public sector.
Table of the turn over ,profit/loss of ITI in the last 16 years:

YEAR TURN OVER(crs) PROFIT/LOSS

1993-94 1527 84

1994-95 1037 _82

1995-96 783 _284

1996-97 1021 -51

1997-98 1263 15

1998-99 1539 27

1999-2000 2085 46

2000-01 2144 28

2001-02 2317 21

2002-03 1795 _375

2003-04 1257 _706

2004-05 1389 310

2005-06 1749 _429

2006-07 1818 _405

2007-08 1210 _358

2008-09 1785 _635

2009-10 4732 _55

Staff strength of ITI(Bangalore)

OFFICERS NON TOTAL GRAND

-OFFICERS TOTAL

M F M F M F

EMPLOYEES 709 121 1020 9 1729 212 1941

OTHERS 35 16 44 - 79 16 95

TOTAL 744 137 1064 9 228 228 2036

CHAPTER-5:

5.1 Summary Of The Learning Experience:-

5.2. Conclusion And Recommendation:-

Conclusion:

There is a continuous search and efforts by the top management for improving
appraisals methods. Almost every employee understand & operates by the
objective of the performance appraisal systems in the organization.

There are indications of the development of the appraisal systems &

process within the organization. The performance appraisal system despite its
shortcomings such as high costs, times consumption for implementation etc is
definitely an efficient system, its mainly oriented towards development of the
member of the organization.

The performance appraisal system if viewed as a tool for growth would further
help in development the organization in a climate of openness mutual trust & a
sense of mutual goings.
Recommendations:-

Based on the analysis finding , actions are recommended to improve the

understanding of the system & to achieve the objectives the performance
appraisal system completely.

1. It is recommended that system clearly set standard of performance .

2. All the employees should be thoroughly oriented about the performance
appraisal system at the time of induction so as to avoid any doubt about
the system at a later stage.
3. Motivational workshops & training should be a part of the organization
routine.
4. The organization must device suitable training programmers for those
individuals who fill in average and below average category.
5. The performance appraisal system must be reviewed at fixed intervals
to keep pace with the changing competitive scenario.
6. The reporting officer taking into accounts subordinate area of interest
and organization needs may recommend the training needs.
7. An open system of performance appraisal may be adopted where the
appraised may get an opportunity to get feedback on his / her
performance.
 8. Officers of the lower grade may be educated about the performance
appraisal system to help them know how their appraisal is done & the
crucial role .
9. Performance appraisal can play an important role in improving the
performance and standard of employees.
10. Public sector should adopt the system being adopted in multinational
companies & organized public sectors in evaluating the performance of
their employee.

ANNEXURE- 1:

[Personal Information]

Project Trainee for……………………………………………….

Address…………………………………………………………………….............

Mobile No…………………………………………………………………..............

Occupation/ Designation……………………………………………....................

D.O.B……………………………………………………………………….............
 ANNEXTURE-2:

Q.1: Are you satisfied with the services of ITI ltd. ?

Ans: (a) Yes (b) No (c) No idea

Q.2: Do you think the technology change is very big challenge for ITI Ltd.?

Ans: (a) Yes (b) No (c) No idea

Q.3 Is the Chines market affecting ITI Ltd.?

Ans: (a) Yes (b) No (c) Some time

Q.4 Is the ITI Ltd. Capable of responding to emerging technology needs on ITI own?

Ans: (a) Yes (b) No (c) sometimes

Q.5 Are the new trends in telecom sector challenge for ITI Ltd. ?

Ans: (a) Yes (b) No (c) Some time

Q. 6 Is the government policy very critical for ITI Ltd.?

Ans: (a) Yes (b) No (c). Sometimes

Q.7 Is the ITI Ltd focusing on only few customer and vendors ?

Ans: (a) Yes (b)No (c) No idea

Q. 8 Is the ITI Ltd sufficiently regarded by long term stake holders to ensure its long

term competitiveness?

Ans: (a)Yes (b)No (c) Some times

Q.9 Should ITI Ltd hire skilled and new potential candidate?

Ans: (a) Yes (b)No (c) Can’t say

Q. 10 Are the present trends in telecom sector encouraged to make new joint venture?

Ans: (a) Yes b) No (c) Some times

Q. 11 The ITI Ltd regularly faced with financial resources challenges?

Ans (a) Yes (b)No (c) some times

Q. 12 Global telecom player is affecting ITI Ltd business?

Ans: (a) Yes (b) No (c) some times

Q. 13 Should ITI Ltd produce in own unit?

Ans: (a) Yes (b) No (c) No idea

Q.14 The appraisal system must focus on?

Ans: (a) Performance (b) Potential (c) Both (d) Can’ say

Q. 15 Which one of the following according to you is the best

future oriented Performance appraisal techniques?

Ans: (a) MBO (b) Rating Scale

(c)Check list (d) field review method

Q. 16 According to you what is the basis for performance

standard is?

Ans: (a) Managers (b) Employees (c) Job analysis

Q.17 What suggestion do you have for improving the performance appraisal

program?

Ans:

________________________________________________________________

________________________________________________________________
________________________________________________________________

___________________________

Your

Signature.