2007-2008 RESULTS
ITI’S PROSPECTS FOR REVIVAL
BRIGHTEN
TO ROLL OUT 9 Mn LINES GSM
NETWORKS IN WEST AND SOUTH
NEW ORDERS BOOST IT BUSINESS
It was a difficult year for
ITI having to grapple with scarcity of working capital and expected orders –
mainly GSM (Global System for Mobile) amounting to Rs.2600 Cr – not
materialising. Yet, the Company
notched up a turnover of
Rs.1233.67 Cr for the year ended March 2008 by efficiently
converting POs (Purchase Orders)
into billable products and containing inventories. The turnkey projects business
in which the Company holds a numero-uno position, accounts for
Rs.382 Cr. This includes the third phase of the massive Army Static
Communication Network completed for the Indian Army. The Company’s unaudited
results were approved by the Board of Directors which met here on Tuesday.
ITI’s
turnaround plan has gathered steam by acquisition of new technologies to widen
the product base and increase sales turnover with improved margins.
The Company is set to roll out GSM networks, initially amounting to 9 million
lines, in the West Zone and South Zone.
ITI has entered into an MOU with Huawei,
The Company’s IT and
networking business is gaining ground with major orders of over Rs.250
Cr flowing in:
Among them are smart card-based DL(Driving License)–RC(Registration
Certificate) book project from Karnataka, SWAN (State Wide Area Network) from
Maharashtra, Data Centre for IGRS (Inspector General & Registrar of Stamps)
from Madhya Pradesh and MPLS (Multiple Protocol Label Switching)-VPN(Virtual
Private Network) for BSNL covering 22 cities.
The Company is on the threshold of setting up the next generation data centre
with world-class facilities and an investment of around Rs.400 Cr. Planned over an area of 1 lakh Sq. ft on
the Company’s land, the
services of the centre will be offered to corporates and
government organisations requiring back-up data recovery facility, in a
strategic partnership on a revenue –sharing basis. Expected to be operational this year, the
services offered by the centre will include Co-location services, Hosting
Services and Managed IT services.
R&D has successfully
developed encryptors for diverse applications for defence
forces such as satellite communication, bulk encryptor for E1 media, Fax Encryptor for paramilitary
forces, Ruggedized Bulk Encryptor for Mobile Application for Army and SDH
encryptors for broadband application.
Development of NGN-BEU(Next Generation Bulk
Encryptor), IP encryptors and
encryptors for WiMAX applications are underway. The first phase of evaluation
has been completed for the development of programmable MUX (Multiplexer) for
railways. The unit has also taken up
development of low cost CLIP (Calling Line Identification Presentation) phone
for civilian market apart from new products which include
protocol convertors, power supply for IFWT
and SCADA (Supervisory Control and Data Acquisition).
ITI’s revival plan, states the Chairman, envisages re-alignment and upgradation of manufacturing infrastructure and building a solutions and services business and diversification with focus on IT and telecom software and exports. Based on the current market scenario and future projections, ITI has prepared a business plan for the next five years. With POs of nearly Rs.7000 Cr expected, the Company has targeted a turnover of Rs.4850 Cr to be achieved during the year 2008-09. A Revival Plan has been submitted for the Government’s approval. “Financial and business structuring as envisaged in our plan is essential for the revival of ITI. The success of our plan hinges on how fast we are able to garner the necessary support which is under consideration of the authorities”, states the Chairman asserting that ITI will continue to have a major role to play as a home grown manufacturer in expanding the country’s telecom backbone.
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Shoukath Ahmed
Additional General Manager
CPR/MR/PR-02/08-09
Corporate Public Relations