New Delhi: State-owned telecom equipment maker ITI Limited is looking to invest over Rs 2,380 crore to re-start its manufacturing units and diversify into other businesses.
“Operating agency for DRS (draft rehabilitation scheme) State Bank of India has proposed a Rs 2,381 crore fund for revival of ITI,” ITI Limited chairman and managing director K L Dhingra said.
The proposal to clear these funds for ITI’s revival is with the Board for Industrial and Financial Reconstruction (BIFR). This body, under the Ministry of Finance, is waiting for comments from the Department of Telecommunication before taking any decision on the fund.
“BIFR has agreed to put our case on fast track. DoT has asked for three months time for their comments. We expect a positive decision to come on it in a two or two-and-a-half months’ time,” he said.
ITI is looking to ride high on the government’s push to promote indigenous manufacturing of telecom equipment.
“After the funds will be approved, our first priority will be to revive our all manufacturing units, from which we expect good business in the coming days,” Dhingra said.
ITI has five manufacturing units located at Bangalore (Karnataka), Mankapur, Naini and Rae Bareli (UP) and Palakkad in Kerala. ITI CMD expressed confidence of getting good business from its manufacturing business.
“We have signed agreement with C-DoT (Centre for Development of Telematics) to upgrade our manufacturing facility,” he said, adding that the company has plans to fund expansion of its business into new segments from the revenues gained by its manufacturing.
As part of its entry in to new segments, ITI has already started production of solar panels at its Naini plant in Allahabad and has plans to start production of Light Emitting Diodes (LED) within next two months.
“We have plans to start production of LED in next two months’ time at Mankapur facility in Uttar Pradesh,” Dhingra said.
Though there was a steep decline in total revenue of the company from Rs 4,596.12 crore in the 2009-10 financial year to Rs 2,102.22 crore in FY’2010-11, the net loss of the company reduced to Rs 381.87 crore from Rs 458.76 crore during the same period.
Shares of the company closed 0.16 per cent down at Rs 31.30 apiece on the Bombay Stocks Exchange on Friday.