Even as it continued to be one of the two largest manufacturers of optic fiber cables (OFC) in the country, Aksh Optifibre made a foray into converged broadband services through its two newly formed subsidiaries—Aksh Broadband and Aksh Networks. What is unique about Aksh’s broadband initiative is that it is focusing on developing a rural market for converged communication services. It launched Gramdoot, an e-governance and convergence initiative in Rajasthan.

Aksh Optifibre’s annual turnover during the fiscal 2001-02 recorded a 63.45 percent growth at Rs 233 crore (as against Rs 143 crore in 2000–01). However, its net profit grew by only 13 percent to Rs 24 crore (21 crore in 2000–01). It appears that the demand-supply mismatch in the domestic market, pressure on prices, and a 40 percent decrease in exports, resulted in this marginal growth in nets. The decrease in exports was due to global slowdown and the loss of a major export order to the US.

Aksh Optifibre TURNOVER FACTSHEET CEO : Rajiv Naik Year of Start-up : 1986 Area of Operation : OFC manufacturing and Broadband Services (through subsidiaries) Address : Enkay Towers, Udyog Vihar Phase V, Gurgaon 122 002 Tel  : 0124 - 6397101/02/03 Fax : 0124 - 6398282 Web site : www.akshoptifibre.com  S W O T Strength  : Low production cost, In-house R&D Weakness : Over dependence on PSUs Opportunity : Access market, Gramdoot ventures  Threat  : Changing market dynamics, Global OFC glut

BSNL and Railways remained the biggest source of business for Aksh, accounting for 82 percent of its OFC sold in 2001-02. In terms of value, these two government organizations bought cables worth Rs 173.5 crore from Aksh. The remaining 18 percent was accounted by purchase from private operators, and exports. BSNL sourced around 22 percent of its OFC requirements from Aksh. The company terms this as over-dependence on one single customer and hence a weakness.