The company has been focusing on the IT and telecom segments since 1971. Currently the division comprises 25 per cent of the company's total business. The nuclear and defence division is another segment that contributes 75 per cent of its business.

The IT and telecom division offers its services - selling fully-ready PCs from other OEMs and its telecom products WLL (wireless in local loop), DLC (digital long circuits) and MSS (message switching system) - through its upcountry marketing offices in Mumbai, New Delhi, Kolkata, Bangalore and Chennai.

ECIL has a manufacturing (assembling) capacity of about 3,000 PCs per month. It has a world-class surface-mount technology assembly facility, and presently the public sector is using it for manufacturing electronic voting machines (EVMs).

Says ECIL director (technical) K S Chandrasekhar: ''We are planning to hive off the IT and telecom division as a new company under the 10th Plan [2002-07] to focus on commercial operations. The idea has been with the board of directors of the company for quite some time.''

In addition, ECIL is also planning to expand its telecom business and focus on high-tech products and exports in the coming two years. As part of this expansion, the company will increase manufacturing of its telecom products to meet its present orders. Currently, it has a handful of orders for its products WLL, DLC, MSS, which are expected to generate revenues of Rs 150-200 crore in the next two years, says a company official.

In the personal computer segment, the company has been focusing on SMEs, state and central government organisations, and defence, aeronautical, banking and financial sectors.

Consolidation position
The public sector company is expecting a turnover of Rs 800 crore for the current financial year; the focus is on exports and high-tech products.

It has registered a turnover of Rs 675 crore and a profit of Rs 75 crore during 2001-02, consolidating its turnaround process. The company attributed the turnaround to the fiscal discipline and exemplary commitment by its employees. Out of the Rs 675-crore turnover, the highest in the corporation's history, the defence sector accounted for more than 50 per cent.

ECIL, which had pioneered the PC revolution in India by setting up a manufacturing unit in Hyderabad, is focusing mainly on components that are a heterogeneous mix of capabilities in a variety of component technologies. Its main customers include defence, space and aeronautical sectors.

As part of the rightsizing exercise, a voluntary retirement scheme was also offered, and during the last two years over 1,300 employees had availed of the facility, resulting in pruning the staff strength from 7,000 to 5,700. The company is looking at a staff-strength of 4,500 in the next two years.