ITI banks on JVs for turnaround
State-owned Indian Telephone Industries (ITI), which has been in the red since 2001, is forging alliances as it seeks to re-establish itself in the country’s telecoms manufacturing space.
By Joji Thomas Philip, TNN |
NEW DELHI: State-owned Indian Telephone Industries (ITI), which has been in the red since 2001, is forging alliances as it seeks to reestablish itself in the country���s telecoms manufacturing space.
ITI has signed a deal with China���s Huawei to manufacture IP Tax equipment at its Palakkad plant, with US-based Alphion for manufacture of G-PON equipment in the Rae Bareli factory, with Chennaibased Midas Technologies for broadband equipment, with Digibee for manufacturing GSM handsets and China���s Gaoxinqi for manufacture of CLIP phones amongst several other such deals.
ITI hopes that these deals will enable the company to have a wider product portfolio as against the current scenario where it depends on contracts from state-owned BSNL and MTNL for its survival.
ITI has also sought a Rs 2000-crore bailout package from the Centre to wipe out its accumulated losses which have now risen to about Rs 2,250 crore. This bailout will also enable ITI, which has six manufacturing centres spread across India, to obtain the critical working capital that it requires to execute the numerous manufacturing deals it has entered into.
The PSU, which has signed a contract with Alcatel-Lucent for manufacture of GSM equipment in its Mankapur and Rae Bareli plant, is also in the process of augmenting the capacity to 9 million lines.
It is also learnt that the company is in talks with defence forces to manufacture communication network hardware for all the three services. Sources further said that with many Indian telcos planning to introduce fixed cellular telephones (FCTs), ITI was in talks with service providers to manufacture these handsets.
FCTs provide landline services but use the mobile infrastructure (GSM or CDMA) as against the traditional wireline model.
Another step being adopted by ITI is to diversify into IT and ITenabled services. Sources said ITI had bagged several deals in this segment. ���Besides, the successful implementation of the project to expand internet services of MTNL is a significant step in the expansion of the company in the IT space,��� a company source said.
ITI has signed a deal with China���s Huawei to manufacture IP Tax equipment at its Palakkad plant, with US-based Alphion for manufacture of G-PON equipment in the Rae Bareli factory, with Chennaibased Midas Technologies for broadband equipment, with Digibee for manufacturing GSM handsets and China���s Gaoxinqi for manufacture of CLIP phones amongst several other such deals.
ITI hopes that these deals will enable the company to have a wider product portfolio as against the current scenario where it depends on contracts from state-owned BSNL and MTNL for its survival.
ITI has also sought a Rs 2000-crore bailout package from the Centre to wipe out its accumulated losses which have now risen to about Rs 2,250 crore. This bailout will also enable ITI, which has six manufacturing centres spread across India, to obtain the critical working capital that it requires to execute the numerous manufacturing deals it has entered into.
The PSU, which has signed a contract with Alcatel-Lucent for manufacture of GSM equipment in its Mankapur and Rae Bareli plant, is also in the process of augmenting the capacity to 9 million lines.
It is also learnt that the company is in talks with defence forces to manufacture communication network hardware for all the three services. Sources further said that with many Indian telcos planning to introduce fixed cellular telephones (FCTs), ITI was in talks with service providers to manufacture these handsets.
ADVERTISEMENT
FCTs provide landline services but use the mobile infrastructure (GSM or CDMA) as against the traditional wireline model.
Another step being adopted by ITI is to diversify into IT and ITenabled services. Sources said ITI had bagged several deals in this segment. ���Besides, the successful implementation of the project to expand internet services of MTNL is a significant step in the expansion of the company in the IT space,��� a company source said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
