CHAPTER 1

INTRODUCTION

Among the manufacturing industries, the electronics industry occupies a key position in
modern science and technology. It plays vital role in the field of Atomic Energy,
Communication, Defense, Education, Entertainment and Space Technology. Until 1970’s the
electronics industry was the most protected of all the Indian industries. At that point of time
country’s electronics policy strongly favored self-reliance and technology and capital imports
were strongly discouraged. This resulted in the electronics industry being highly under
developed ti l the late 1980’s. The industry was considered very inefficient producing outdated
and low quality models at a very high cost. Policy reforms were initiated in the early 1990’s with
the liberalization of trade and industry sectors. With the change in the policy regimes after
liberalization, the industry experienced restructuring.

Electronics is one of the fastest growing segments of the Indian industry. Today, the
electronics industry is completely de-licensed with the exception of aerospace and defense
electronics. The electronic industry in India constitutes less than 1% of the global market! The
demand for these products however is growing rapidly and the investments are flowing-in to
augment them a fracturing capacity. The growth of hardware and electronics manufacturing in
India is not only related to government polices for the sector, it is also linked to the availa bility
of trained professionals who can be employed by the companies. The ease of doing business is
also a cause for concern. Prior to the present government coming to power

KELTRON was established in 1973 as the first Electronics Development Corporation in

India in the state government sector. The Keltron group of companies comprised of the holding
company KSEDC, and ten subsidiary and associate companies turning out more than hundred
different types of products. The products are distributed through a strong sales and distribution
network spanning the entire country. Keltron Controls, a division of KSEDC was set up in 1979
in Aroor to introduce the state-of-the-art technology in the field of Control and Instrumentation
(C&I) to the power and process industries in our country.

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 CHAPTER 2
COMPANY PROFILE

The Kerala State Electronics Development Corporation (KSEDC) popularly known as

Keltron is one of the major pioneering Public Sector Companies in Kerala. Its ownership is
completely held by Government of Kerala.

2.1 HISTORY OF THE COMPANY

The history of KELTRON – Kerala State Electronics Development Corporation Ltd. - is

a saga of innovation in electronics. From being a pioneer in 1973; to the role of a trend -setter,
today the Organization – Keltron - has been the catalysis for the development of electronics
industry in Kerala. The tag line launching a state owned electronics enterprise, more than a
quarter century ago, read “spearheading an electronics revolution in Kerala”. It was indeed an
experiment by Government of Kerala (The Industries minister Sri. TV Thomas & the founder
Chairman & Managing Director Sri. KPP Nambiar) to transform the laid-back, picturesque
Kerala state known for its spices, natural beauty, Kathakali and Onam boat races, to an arena for
industrial and technological development based primarily on Electronics. That was in fact how
Keltron was born headed by the founder Chairman & Managing Director Sri. KPP Nambiar in
the capital city of Kerala State – Thiruvananthapuram. Today he has an unique position in the
Indian Electronics scenario as the father of electronics in India.
Within five years of its inception, Keltron had set up a production centre in every district
of the state. More than 5,000 people were engaged directly or indirectly by Keltron for the
manufacture of electronic goods. The model of a state-owned electronics corporation was so
successful that several other states in India followed suit; launching their own electronics
development corporations.
A quarter century later, Keltron after having contributed significantly to the state and
substantially to the Industrial community of the nation and to the exchequer, set about
transforming Trivandrum, the capital city of Kerala, into one of the major electronics hubs of the
country. Today the city is home to techno-park, the internationally known technology park, a
long cherished dream come true of the founder Chairman & Managing Director – Sri. KPP
Nambiar - where thousands of talented men and women participate in the development of a
burgeoning information technology industry. Thus Keltron has in effect triggered a revolution
that still keeps churning out its benefits to individuals and institutions in different parts of the
world, touching different walks of human life and continuing in its quest to Innovate Products &
Processes and Services that would add further value to the livelihood areas of the country,
supporting real time industrial growth.
Keltron has been making things happen since 1973 starting with spearheading an
electronics revolution in the country to being the most sustainable electronics corporation in the
state sector. “ Relitronics” – that was the word used by for the products and services of Keltron
by the visionary founder i.e.: “Reliable Electronic products and services”. A strong infra-
structure, enterprising team of enthusiastic in-mates, innovative operational methods, accent on
quality and customer-orientation are the core competencies of the organization which has made
things happen all these years. Large pool of Experienced Technical man power, expertise in high
quality manufacturing is the direct result of the highly skilled, multi-disciplinary team of
graduate engineers, project managers and a skilled workforce with a proven track record in
complex precision manufacturing. Now the visibility of Keltron is very much evident.
Currently Keltron employs a work force of 2000 of which 400 are engineers who possess
extensive hands-on experience in technology integration and adoption, high-Tech manufacturing
operations and in managing turn-key projects. Man power at space electronics section has been
specially trained at Indian space Research Organization (ISRO) in high reliability soldering,
harnessing and QC. Keltron also provides technical man power to major organization like ONGC
and VSSC and collaborators like Hitachi Japan. Country wide sales network - Keltron has an all
India Sales network in place with full-fledged Marketing offices in Mumbai, Delhi, Kolkata,
Chennai, Bangalore, Hyderabad and Trivandrum to provide the quickest possible service to
customer.
Technology Support at the moment; Keltron has an arrangement with CDAC, the
research and development organization under the Government of India, which is located in the
Keltron House campus in Vellayambalam (Trivandrum), for technology development and
adaptation. During the past 30 years, Keltron has churned out a whole range of

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electronic products, electro-mechanical and high precision modules and sub assemblies for
different industry segments. Over the years, Keltron has built up a strong infrastructure spread
over 7, 00,000 sq ft of built-up area. Equipped with computer-based facility for system design &
engineering, and software development tools for embedded systems, Keltron today is fully
geared to offer integrated manufacturing solutions.

2.2 OWNERSHIP PATERN

Keltron is one of the major public sector companies in Kerala. Its ownership is
completely held by government of Kerala. Keltron Controls was started as its Control and
Instrumentation division. But during the late 90`s because of the globalization of Indian
market and the change of energy sector reforms the control and instrumentation business in
India has become dull. In order to utilize its idle capital and infrastructure Keltron Controls
were restructured in four self-profit-generating strategic business units (SBU`s). The
activities of SBUs are supported by Common Service Groups (CSGs).

2.3 KELTRON CONTROLS

Keltron Controls, a division of KSEDC was set up in 1979 to introduce the-state-of-the-

art-technology in the field of Control and Instrumentation (C&I) to the power and process
industries in the country. Keltron Controls commenced its operation with the signing of technical
collaboration agreement with Controle Bailey, France for their sophisticated, versatile electronic
analogue control technology- the 9020 system. At that point of time operations of the Division
are focused on system design, Engineering, Manufacturing, Field Erection & Commissioning
and Project management of Thermal Power sector and Process Control sector instrumentation
systems. The division’s operations include manufacture of panels and other C&I Systems and
Instruments also. Thus the focus was entirely on C&I business.

2.3.1 The Classic Era. (1979 to 1999)

Ever since its inception, KELTRON CONTROLS has offered cost effective, State-
of-the-art Engineering solutions in Control & Instrumentation and Process Automation to Core
sectors like Power, Steel, Petrochemicals, Oil & Natural Gas, Fertilizers, Aluminium and
Cement Industries. The Division has brought-in the latest Control & Instrumentation

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Technology into the country, covering such as Sensing Elements, Monitoring Hardware, Final
Control Elements, Actuators, and Control and Automation software.

With an Annual turn Over of Rs.600 Million and manpower base of over 600
personnel, Keltron Controls specialized in system Engineering and Design, Manufacturing,
Software Development, Quality Controls, Erection & Commissioning and Customer support
services (AMCs etc.). The rich tradition of KELTRON in the field of Electronics gave
KELTRON CONTROLS a leading edge in Technology Assimilation, Research and
development. With its increasing capability to undertake Turn-Key projects in Control,
Instrumentation and Automation for varied application; Keltron Controls was able to meet the
challenges poised in front of them.

Keltron Controls has achieved many first time feats in India, like Total Power Plant
Automation at Vijayawada Thermal Power Station of AP State Electricity Board and the fully
automated Steel Melting Shop at Visakhapatnam Steel Plant (VSP). With the signing of
Technical Collaborations with CONTROLE Bailey, France (1979), the Division successfully
introduced the popular Analog Control System in Indian Thermal Power Stations with a vision to
adapt sophisticated technologies to suit the Indian needs:

 Analog Control Instrumentation – Controle` Bailey, France

 Edge-wise Indicators – Camille Bauer, Swiss
 Electronic Pressure & Differential Pressure Transmitters & Analyzers – ABB Kent
 Tank Level Gauges – Enraf B.V, Holland
 Single Loop Controllers – ABB Kent, UK.
 Digital Distributed Control System – ABB Kent, UK.

Subsequently emphasis was on technology assimilation, know-how studies and as a result

indigenization has contributed to the success of Keltron Controls in offering industry solutions
based on latest technology developed indigenously. Thus having blazed a trial of success in the
speedy implementation of various core sector projects, the manufacturing unit of Keltron
Controls Division set up amidst the lush greenery with the back drop of backwater in Aroor near
to Kochi, has been delivering complete solutions for total automation such as:

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  HIACS – 3000 Digital Distributed Control System for Power Plant Applications
 Multi Loop Digital Distributed Control System for Process Automation
 9020 Analog Control system for Power Plants
 S-9000 PC Based DCS for Power & Process industries.
 SCADA – Supervisory Control & Data Acquisition software for Power & Process Plants

Along with other complementing systems like Programmable Logic Controllers, Open
loop Logic System, Sequential Events recorders, Valve position Controllers and Multi-window
Alarm Annunciation Systems, and the unit ensured complete in-house solution towards total
automation solution integration. Thus the division was sailing smooth with the classic and
traditional industrial structuring of well defined broad spectrum departments:

1. Marketing: The division was equipped with well established marketing network backed
by qualified and experienced professionals assisting the customers in selecting right
products for specific applications in the core sectors.

2. Project Management: The project team provided the customers with single point contact
and co-ordinated with various departments and for the support services required for the
customers.

3. System Design & Engineering: The design team comprised of qualified and experienced
engineers specialized in process technologies to create optimum engineering solutions.
The Divisions Engineering capabilities had gained International acceptance through
associations with its collaborators for overseas contracts in Singapore, Nigeria,
Philippines.

4. Software: A dedicated group of experienced application software engineers worked to

provide real-time software solutions on a variety of hardware platforms. This group also
provided software support services the collaborators for their overseas contracts etc.

5. Manufacturing: The sophisticated manufacturing unit of Keltron controls covers a floor

area of 13,000 sq.meters . This unit houses:

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  Fully equipped, air conditioned Electronic assembly shop for component insertion,
soldering, testing, calibration of PCBs, including computerized in- circuit testers,
cabinets wiring and system integration & testing.
 Machine shop for precision machining of critical components
 Painting shop for high quality surface finish
 Assembly line for Analyzers, transmitters and pneumatic products.

6. Quality Assurance: Divisions Total Quality Management always ensured and directed at
constant improvement and development of products and servicesTotal quality
management efforts match the companies set standards of excellance to ensure that the
customers receive ZERO defect systems.

7. Erection & Commissioning: In any Turn-Key project execution environment Erection &
Commissioning are two important overall functions. The division is committed to
comprehensive customer support at every stage of contract execution up to the final
responsive after sales service.

In fact the overall organization of Keltron Controls was fully focused on Control
& Instrumentation business till 1995. During late 1990s there was a marked change in the
foreign trade policies of Govt. of India and the flood gate in the name of open policy was opened
to all sectors and as a result the multinational giants like SIEMENS etc gate crashed into India
and established their supremacy in no time in hitherto protected Electronic industry.
Subsequently Keltron Controls faced draught situation in canvassing orders and had to push
forward with practically no C& I turn-key orders for considerable time frame! The Spares
business and AMCs helped the Unit to certain extend. The overseas giants applied thump rule to
dictated terms within the industry.

During the period Indian manufacturing industry experienced deep recession

everywhere and KELTRON to experience the heat of recession. In most of the areas idling of
man power as well as machine was evident. The next 5 to 7 years were a trial by fire for the
manufacturing industry. Every management pundits raked their brain to find a way out of this

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predicament. Lot of brain storming was made. Keltron too were in search of a solution to tide
over the situation.

2.3.2 The Modern Era ( 2003 to Present)

Over the years, the division has diversified into Information Technology (ITG) also
by starting the manufacture of computers in 1999. Subsequently, the division started
manufacturing of mechanical products for the disabled people (PPD). Of late, the Division has
diversified its operations into Defense field in close association with NPOL, Cochin and Bharat
Electronics, Bangalore as well as into shipping instrumentation in association with Cochin
Shipyard Ltd (STSG). Also the division is a major supplier of technical manpower to ONGC for
their rig operation & maintenance. As there is very good manufacturing infrastructure for
Electronics, Electrical and Mechanical products and services, the division offers Contract
Manufacturing Services to clients from abroad and India.

2.4 THE ORGANISATION

Presently the Division is headed by Chief General Manager (CGM) and supported by
a team of well qualified and experienced Engineers and Technicians & other Professionals from
commerce, Finance & HR etc fields. At present the operations of Keltron Controls division is
based on FOUR independent Strategic Business Units (SBUs) and each SBU is se lf-profit-
generating-center. The activities of SBUs are supported by common service groups (CSGs).
Under the division head SBUs are independently looked after by SBU Heads.

2.5 DEPARTMENTS / STRATEGIC BUSINESS GROUPS CONCEPT

Keltron Controls division is functioning as four independent Strategic Business

Units (SBUs). The activities of SBUs are supported by four Common Service Groups (CSGs).
The four strategic business units are Control and Instrumentation, Pneumatic Products,
Information Technology, Strategic Services Group (STSG) and the Projects for Physically
Disabled (PPD) stand apart as A MINI SBU.