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The
financial year 2004–05 saw the UPA government pumping in 1,001 crore in a last
ditch bid to revive ITI, the old telecom-equipment warhorse. The Cabinet
Committee on Economic Affairs approved a plan to revive ITI by infusing Rs 200
crore equity, Rs 458 crore for voluntary retirement scheme (VRS), Rs 50 crore
for capital expenditure, and Rs 93 crore to clear provident fund dues in the
current financial year. It was also decided to write off interest and penal
interest of Rs 23.67 crore.
ITI managed to increase its sales to Rs 1,505 crore in financial year 2004–05
from Rs 1,278 crore in financial year 2003–04. However it still ran losses as
price cuts, excess manpower, and huge overheads affected its margins. Also, it
failed to keep pace with technological advancements and lost market to newer
players.
One of the major achievements of ITI during the year was an order worth Euro
65 million from BSNL. The order was for supply of and installation of GSM lines
for BSNL using Alcatel technology. The order will help BSNL to expand its
network in western India including: Gujarat, Maharashtra, Madhya Pradesh, and
Chattisgarh. A total of one million lines will be deployed.
| CMD: YK Pandey |
 |
| Area of Operation: Telecom equipment and
turnkey services |
Address:
ITI Limited, 45/1 Magrath Road
Bangalore 560 025, India |
| Tel:
+91 80 25566366 |
| Fax:
+91 80 25593337 |
| Email:
cmd@itiltd.co.in |
| Website:
www.itiltd-india.com |
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| V&D
estimates |
CyberMedia
Research
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| Highlights |
| • |
In FY 2004-05 the company registered a total sales of Rs 1,505 crore |
| • |
Euro 65 million order from BSNL |
| • |
Every plant is specializing in one or more product categories |
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The order follows a technology transfer agreement about the production and
deployment of Alcatel's Evolium GSM solution. According to first phase of
agreement, ITI will deploy Alcatel-manufactured equipment-such as wireless
switches and base stations-and later it will manufacture this equipment under
license from Alcatel at the ITI plant in Mankapur. The technology being
implemented in this process is GPRS-compliant and has a migration path to EDGE
and 3G. Alcatel has also provided ITI the rights to market its products and
services to SAARC countries. The technology transfer is also likely to revive
manufacturing activity at ITI. After the completion of this one million line
order, ITI will get orders worth Rs 1,200 crore to install about 3.5 million
lines. It should be noted that BSNL plans to deploy 15 million lines over the
next few months.
ITI also entered into partnership with Tejas Networks for next-generation SDH
equipment for addressing the optical transmission market. Tejas' product
portfolio includes its TJ100 series of next-generation SDH products for STM-1,
STM-4, and STM-16 capacity.
ITI is also planning to start manufacturing SIM cards targeted at private
cellular operators. The company is looking to get aggressive on the CDMA front.
ITI also plans to implement a VSAT broadband service on a revenue-sharing basis.
In the partnership, BSNL would take up marketing and ITI would install the VSAT
networks. According to an estimate, it plans to deploy at 500 stations
initially. ITI is also in the process of completing the installation of telecom
networks for TCIL in Afghanistan, at a cost of Rs 50 crore, which is the
biggest-ever export order for the company. ITI is also considering with the idea
of tying up with Alcatel for ADSL products.
Next Page : "C-DOT was not successful on GSM and CDMA, so ITI opted for multinationals"
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