How a Mumbai Garage Startup Built India’s First PC Before Its Time
In 1975, while Silicon Valley was birthing Apple and Microsoft, a quiet revolution began in a Mumbai garage where electrical engineer S. Varadarajan founded MicroComp Limited. Predating both Infosys (1981) and HCL (1976), this forgotten startup created India’s first indigenous microcomputers, only to become a cautionary tale about pioneering too early in an unprepared market.
The Birth of Indian Computing (1975-1977)
Varadarajan’s vision emerged from his work at Tata Institute of Fundamental Research (TIFR), where he recognized India’s dependence on foreign mainframes. With ₹5 lakh initial capital (about $35,000 then), MicroComp set up in a converted garage workshop with:
– A team of 8 engineers
– Basic oscilloscopes and soldering irons
– No access to Intel chips due to import restrictions
Their breakthrough came in 1977 with the Micom 800 series:
– 8-bit processor (indigenously developed)
– 4KB RAM (expandable to 16KB)
– Cassette tape storage
– Priced at ₹25,000 ($3,000) – 1/5th cost of imported systems
Early Successes Against All Odds
MicroComp’s innovations found surprising adoption:
- Indian Railways: Powered the first computerized reservation system at Mumbai CST (1978)
- ISRO: Used for satellite trajectory calculations
- Bank of India: Early core banking experiments
- Defense Applications: Artillery trajectory systems
By 1980, MicroComp had:
– Sold 300+ systems across government sectors
– Developed India’s first COBOL compiler
– Won the “Indigenous Technology” award from CSIR
The Challenges That Crushed Potential
Despite technical brilliance, MicroComp faced systemic hurdles:
Policy Headwinds
– License Raj restrictions prevented scaling production
– No venture capital ecosystem existed
– Government preferred “approved” foreign collaborations
Financial Struggles
– R&D consumed 60% revenue with slim margins
– Banks refused loans without political connections
– Employee poaching by emerging IT giants
Technological Shifts
– IBM PC’s 1981 launch made 8-bit systems obsolete
– Unable to transition to 16-bit architecture
– Component import bans crippled upgrades
The Painful Decline (1982-1990)
MicroComp’s market share evaporated as:
– HCL’s Busybee PC (1985) captured government contracts
– Wipro entered hardware through foreign tie-ups
– Maintenance revenue couldn’t sustain R&D
A desperate 1987 pivot to software services came too late. By 1992 economic liberalization, MicroComp was reduced to a 20-person maintenance outfit before closing quietly.
Lasting Legacy
Though the company failed, its impact endured:
- Talent Pipeline: Alumni founded 3 semiconductor startups
- IP Legacy: 12 patents later used by TCS and Wipro
- Proof of Concept: Demonstrated Indian hardware capability
- Lessons Learned: Showed need for policy support in deep tech
Varadarajan himself joined CDAC in the 1990s, contributing to India’s supercomputing program. In a 2005 interview, he reflected: “We were right about India needing indigenous computers, but too early on the business model.”
Historical Significance
MicroComp’s story represents a road not taken for Indian tech:
– Could India have developed its own hardware industry?
– Might India have produced its own Apple or HP?
– What if policy had supported such pioneers?
Today, as India pushes for semiconductor self-reliance under the Make in India initiative, MicroComp’s forgotten journey offers crucial lessons about the delicate ecosystem needed to sustain technological innovation – where brilliant engineering alone cannot overcome market and policy realities.
