Company sees CCTV cameras, smartphone accessories and smart homes and city solutions overtaking revenues from current businesses in next 2-3 years
Videocon Telecom, which has been extending its presence in non-spectrum businesses since last three years, could see its revenues from new businesses – CCTV cameras, smartphone accessories and smart homes and city solutions – overtake its existing business in future, company's CEO Arvind Bali told DNA Money.
"All these new businesses will be my revenue drivers. They will overtake the other businesses. They are just in the first year of operations but they are growing very fast and will be a big business for us in next 2-3 years," said the chief of Videocon Telecom, which stopped being a mobile service provider last year.
Of the projected topline of Rs 1,658 crore for the current fiscal, the company is expecting Rs 300 crore, or 18% of the total revenue, to come from new business ventures.
Bali said the telecom firm will be launching the CCTV brand in the next 7-10 days while its smartphone accessory brand will be placed in the market in the first week of July.
He said they will be produced at Videocon's existing facilities and would be funded from internal accruals.
Another major area that the company is looking to get into is smart home and city solutions, which will piggyback government's pet Smart City initiative.
Bali said the company was already receiving many inquiries from public sector undertakings (PSUs) for their smart solutions for homes and cities.
"We are taking jobs from SMEs (small and medium enterprises) and PSUs for security systems. Our smart city initiatives, also in our security and surveillance vertical, have also got homeland security products that include security gates at airports and hotels, boom barriers, parking and other such solutions under it," he said.
The company currently provides broadband internet to customers using fibre to the home (FTTH) and wireless broadband technology in Punjab, Haryana and Himachal Pradesh.
Bali said Videocon was looking to extend this service pan-India in the next 2-3 years.
He said the telecom company's international long distance (ILD) and national long distance (NLD) carrier businesses had already cornered 10% market share.
According to him, Videocon's tower business was also profitable; "We are trying to increase the tenancy of our towers to improve its valuation".
The company moved out of mobile services business after it sold its spectrum to Bharti Airtel for Rs 4,428 crore early last year to repay its bank loans.
...& ANALYSIS
- Company is also looking to get into smart-home and city solutions, which will piggyback Smart City initiative
- Videocon Telecom will launch the CCTV brand in the next 7-10 days, according to CEO Arvind Bali
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