The Electronics Corporation of India Limited (ECIL) (E) : Computer Group

Abstract

This case describes the situation faced by the Computer Group of ECIL, a multiproduct, multidivisional company. This Group is one of ECIL’‘s most important Groups in terms of turnover and in terms of the importance of the product. It had developed, through its own efforts, India’ ‘s first computer and subsequent models, all through its own R&D. Until 1976, the Computer Group was India’‘s only computer manufacturer and performed well in financial terms also. From 1976, there were technological changes and the advent of PCs, along with competition, changed the scene. After 19876, the Group has been incurring losses for a number of years. The case poses the decision problem of what to do with this Group itself, with its product mix, and its technological policy.