ITI Ltd, the state-owned telecom equipment maker, is embarking on a major push in the IT networking segment as part of its diversification strategy.
BANGALORE: Upbeat on the orders front, ITI Ltd, the state-owned telecom equipment maker, is embarking on a major push in the IT networking segment as part of its diversification strategy.
The Bangalore-based company looks to more than double sales and cut losses by half this year. It has targeted sales of Rs 4,770 crore in the current financial year (2007-08) from Rs 1,842 crore in the previous year.
"The major driver for this growth would be the mobile sector", ITI's Chairman and Managing Director, Pritam Singh told.
"We are confident of bringing down the loss of Rs 412 crore last year to Rs 150-Rs 170 crore this fiscal".
ITI has been building GSM (Global System for Mobile) network for BSNL in the Western region (Maharashtra, Gujarat, Chhatisgarph and Madhya Pradesh) and networks as well as broadband systems for MTNL in Mumbai.
Sounding bullish, he said, "the requirement of BSNL itself will be large in the coming years. We will be able to generate business of Rs 2,600 crore out of this in this year itself".
Singh said ITI is strengthening its foray into the IT networking space in a major way, while it's also giving increasing thrust to defence segment.
ITI has executed a Rs 30 crore project on gram panchayat networking in Rajasthan, where the Government is planning to give it an additional Rs 60 order on expansion in this regard.
"We are in a fairly advanced stage of getting networking order for Bihar police. We will create a broadband network which can carry voice and data, and that will be around Rs 150 crore," he said.
According to him, ITI has bid for projects in Maharashtra and Punjab, as also submitted proposals to Kerala Government, which has appointed it as IT consultants, on connecting police stations, ration shops and medical facilities.
"From IT networking, we feel we can generate business of Rs 400-Rs 500 crore this year," Singh said.
ITI expects to bag orders worth Rs 200 crore from the Defence, including Rs 145 crore on expanding the ASCON (Army Static Communication Network) Phase III project.
Singh said ITI is confident of bagging the Rs 800 crore order for Phase IV, for which the request for proposals is expected soon.
The company plans to invest Rs 350 crore over the next five years on upgrading technlogies and other business initiatives, he said. "We don't want to be left behind".
Singh said there is also a proposal to unlock value from assets created by the company, born in 1948, in various parts of the country. "We will only look at surplus land (forunlocking value)", he added.
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