Kerala's Telics plans foray into PC manufacturing, SW development 

Trivandrum Electronics Industrial Co-operative Society, or Telics as it is
commonly called, plans to get into software development and PC manufacturing
arena. Leading organisations including Indian Railways, Airports Authority of
India, Indian Telephone Industries, Central Public Works Department, State PWDs
and KSRTC sourc many niche products from Telics, like Ferro Resonant type
voltage regulators, tri-colour torches, track-feed transformers (for track
changing) etc. "For a long time we had the monopoly for these products and
we continue to get orders from railways for electronic and electrical
items," said K Prabhakaran Nair, Executive Director, Telics.

Recently, the company installed an automatic electrical bell system for
Kendriya Vidyalaya, Thiruvananthapuam that enables the institution to re-deploy
peons for more useful activities. "First they approached many private firms
but they awarded the contract to us," pointed out Nair. Telics now has
plans to diversify into application software development, manufacture and
assembly of computers.

Telics was started under the sponsorship of the Department of Industries and
Commerce, Kerala Government under the `half-a-million job' scheme of the Union
Government in 1973. The objective was to provide employment to engineers,
diploma holders and ITI certificate holders. Telics had taken 320 people for 18
months training. After training the aim was to form 14 production units under
the control of 32 engineering entrepreneurs for manufacturing electrical and
electronics products.

Telics was to market the products produced by the 14 units. And 14 buildings
were constructed in the present Keltron complex in Karakulam, Thiruvananthapuram
for the purpose. Trainees were assigned to develop 14 products including
eco-cardiograph, audio, video products, transformers, cabinets etc. The team was
given three months leave after training under the agreement that they would be
given employment later. "But due to financial problems only four units
could function with 60 employees," said Nair. The other trained
entrepreneurs started their own ventures or joined Keltron units. "Due to
financial, infrastructure and HR problems the project got stuck," rued Nair.

The Trivandrum District Co-operative Bank (TDCB) gave a loan of Rs 3 lakh in
1975 and Telics started importing 2-in-1 tape recorders, clock radio etc in
semi-knocked down condition from Hong Kong. The sale of these products in Kerala
enabled Telics to earn some profit. It had also developed the full range of
voltage regulators, battery chargers, radios, tape recorders, emergency tube
lights etc and could capture the south Indian market. It also opened offices in
Bangalore, Goa, and Mangalore.

Now with just 32 employes and annual sales of Rs 60 lakh, Nair is sad that
Telics' ambitious objectives could never be attained. He continues to grapple
with labour and financial, lack of government support and still continues to
keep the organization afloat. "Ours is the only electronics co-operative in
Kerala to survive 30 years while all our contemporaries closed down." No
wonder certain orders are reserved for Telics alone, the automatic electric bell
system being the most recent.

However, according to industry analysts, without adequate dose of modern
management skills, marketing effort and upgradation of technical know-how,
Telics may not achieve much in the globalised environment.

Sreekumar Raghavan

Thiruvananthapuram