The Electronics Corporation of India Limited (ECIL) (I): Components and Special Products Group

Abstract

This case describes the situation faced by the Components and Special Products Group (CSPG) of ECIL, a multiproduct, multidivisional company. It deals with electronics components, active as well as passive, and sub assemblies including PCBs. The case turns around the question of what to do with a set of products that are not easily made economically viable due to the high economies of scale involved and the high investments needed for sophisticated machines. The products are also highly sensitive to government policy regarding tariffs and excise. IN such circumstances, the question of whether to continue the Group at all or not is posed in the case. The case also raises the question of when to integrate vertically.