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Telecmom Company Aiswarya

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Submitted By sinigenugeorge
Words 1515
Pages 7
INTRODUCTION

Incorporation and Initial Progress
The Company was incorporated as Aishwarya Telecom Private Limited on June 2, 1995 with the Registrar of Companies, Andhra Pradesh, Hyderabad and took over the business of the partnership firm named ‘Advanced Electronics & Communications System’.
Aishwarya Telecom Limited (ATL) was promoted by Mr G Rama Manohar Reddy. Mr G Rama Manohar Reddy and Mrs G Amulya Reddy were the partners of the then partnership firm named ‘Advanced Electronics & Communications System’. ATL was formed by taking over the business of the said partnership firm and was incorporated as Aishwarya Telecom Private Limited on June 2, 1995 with the Registrar of Companies, Andhra Pradesh, Hyderabad. Subsequently, it was converted into a Public Limited Company on July 12, 2005 and the name of the Company was changed to Aishwarya Telecom Limited and a fresh Certificate of Incorporation obtained from the Registrar of Companies, Andhra Pradesh, Hyderabad. The Registered Office of the company is located at 3-C Samrat Commercial Complex, Saifabad, Hyderabad, Andhra Pradesh. ATL is based at Hyderabad with production at Yanam in Pondicherry state and Dehradun in Uttrakhand State, with branches in New Delhi and Mumbai.

STAGES OF THE OLC
The five stages of OLC illustrate changes in organizational structure and managerial processes as the business proceeds through developmental stages. Each stage is discussed, with specific emphasis on the product creation and delivery aspects of the stage.

INCUBATION STAGE OR START-UP STAGE

Aishwarya Telecom Limited (ATL) started its operations in the year 1995 with specialization in designing, manufacturing and marketing of Telecom Test & Measuring equipment for Copper, Optical and Data Networks. ATL is having strength of 61 employees. Initially, ATL concentrated on catering to the Public Sector Telephone Service providers, Railways and Defence Establishments. The focus is to further increase sales revenues from the Private Sector companies.
ATL strategy is to develop high-end test equipments, which could be expensive but have good demand and could be a potential market for few years. The strategy is to design the products and produce them at low cost and take bigger market share. In the year 1998, ATL developed first Digital Cable Fault Locator for localising low insulation faults in Telecom Copper Cables. In the same year Telecom Engineering Center (TEC), Department of Telecom (DoT), has approved the specifications of Digital Cable Fault Locator of the Company.

Evolution
The Company meets it electricity requirement by purchasing electricity from State Electricity.
Manpower
The Company is in a knowledge-driven industry and it believes that its employees are key contributors to its business success. To achieve this, the Company focuses on attracting and retaining the best people possible. All the employees for the operations are directly hired on the rolls of the Company. Multi-stage induction and skill enhancement training programmes are conducted to prepare the employees for the desired performance levels. Employees are offered cross-functional responsibilities to enhance their skills.

All team members are selected strictly based on established criteria considering customer's requirements. The Company looks for specific skill-sets, interests and background that would be an asset for its kind of business. Regular training is part of the Company’s strategy to build a base of highly effective and efficient team.

Employee Profile
The Company’s employees have diverse educational backgrounds and, as on date, comprises of Engineers, MBA, post-graduates, diploma holders and graduates. The Company believes that it has a balanced mix of experience. The Company has a total of 61 employees as on date, comprising a blend of qualified professionals with diverse academic backgrounds.
The break up department wise of the total employees of the Company is as follows:
1. Production (22 )
2. Research & Development( 3)
3. Marketing (11)
4. Finance, Accounts & Secretarial(5)
5. Administration & Human Resource( 8)
6. Stores, Purchase, Service & Others( 12)

PRODUCTS
Aishwarya Telecom Limited (ATL) is a manufacturer and distributor of Test & Measurement (T&M) Instruments.

GROWTH STAGE
In the year 1999-2000, the company has developed a Portable Cable Fault Locator and Universal Cable Fault Locator, which is a single unit having all the features to localise multiple faults in Telecom Copper Cables i.e., features of Portable Cable Fault Locator and features of Digital Cable Fault Locator.
Prior to the telecom reforms/privatization the telecom density was just 2% against the total population, which is quite low when compared to any other developed countries having 70-80% telecom density. The Government of India has anticipated 13.42% growth during 2002-06 every year and growing above to the anticipated. At present the telecom density is about 12% and expected to raise upto 20% by the year 2007.
The Company has experienced significant growth in revenues in the past and expect this growth to place significant demands on both the management and resources. This will require the Company to continuously evolve and improve its operational, financial and internal controls across the organisation.
Challenges to growth continued expansion increases the challenges involved in:
(a) Recruiting, training and retaining sufficient skilled technical, sales and management personnel;
(b) Adhering to our high quality and process execution standards;
(c) Maintaining high levels of client satisfaction;
(d) Preserving our culture, values and entrepreneurial environment; and
(e) Developing and improving our internal administrative infrastructure, particularly our financial, operational, communications and other internal systems.

Maturity stage
Company deals in Test & Measurement (T&M) equipments. Technology plays a major role in this industry. T&M industry is faced with continuous technological changes/upgradations/obsolescence. The Company has to continuously upgrade its technology to compete with the other players in the market. In future, the Company may be required to spend considerable amount on Research & Development activities and on latest machines and equipments.
If the Company is unable to keep itself updated with latest technological changes, the Company may lose out its business and customers.

The Company designs its products based on customer’s requirements as per the latest technology available in the market. The Company has its own in-house Research & Development (R&D) unit. In case of any technological changes/up gradations, the Company may need to re-engineer its assembly lines, processes etc. depending upon the product design and technology, which will largely involve training the manpower and to an extent on redesigning its manufacturing processes.

The Company’s revenue is mainly from Telecom Operators. The Company supplies to both PSU and Private telecom operators. These telecom operators normally go through their own internal procurement policies. In case of PSU telecom operators the supply orders are issued through public tender model for the yearly requirements. If the Company is unable to compete with other bidders in terms of quality and prices, and is unable to qualify the tender, it may adversely affect the revenue earning potential of the Company in that year.
The private telecom operators follow the ‘need’ based procurement model. The orders from private telecom operators are normally huge in terms of value and quantities but are generally not spread uniformly through out the year and hence the revenues and profitability of the Company could differ significantly from quarter to quarter. The Company has skilled and experienced personnel who have expertise in their chosen fields. The Company is a broad-based organization and has strong systems in place to ensure minimal dependence on any single individual.

The Company to reduce its dependence on foreign manufacturers/suppliers has decided to manufacture some of the products indigenously. ATL has entered into a MoU with Indian Institute of Technology, Chennai (IIT-M) to develop optical module for Optical Time Domain Reflectometer (OTDR) as per Type I and Type II TEC specifications.

Decline stage

During the year under review, your company has achieved an increased Turnover of Rs. 36.02 Crores inspite of economy slowdown when compared to the previous year turnover of Rs. 42.98 Crores.
During the year 2009-10, company has recorded a drop in Profit after Tax (PAT) of Rs. 2.15 Crores as against previous year 2008-09 of Rs. 6.21 Crores.During year 2011-12,the company had incurred loss of 3.22 Crores as against profit of 2.15 crores of previous year.

The Important factors that caused loss may include the following factors:-
• General economic and business conditions;
• Company’s ability to successfully implement its strategy, its growth and expansion plans;
• Factors affecting Telecommunication industry;
• Increasing competition in the Telecommunication and Telecom Equipments industry;
• Increase in labour cost, raw materials price, cost of plant & machinery and insurance premia;
• Inadequate availability of Raw Materials
• Manufacturers’ defects or mechanical problems with Company’s plant & machineries or incidents caused by human error;
• Changes in the value of the Indian Rupee and other currencies;
• Amount that the Company is able to realize from the clients;
• Changes in laws and regulations that apply to the Telecommunication industry;
• Changes in fiscal, economic or political conditions in India;
• Social or civil unrest or hostilities with neighboring countries or acts of international terrorism;
• Changes in the foreign exchange control regulations, interest rates and tax laws in India.

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