• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mr Asim Ghosh, Managing Director, Hutchison Essar, flanked by Mr Sandip Das, CEO, and Mr Kumar Ramanathan (left), COO, Hutchison Essar South Ltd, at the launch of expanded services in the State in Hyderabad on Thursday. - A. Roy Chowdhury

Hyderabad , Aug. 28

IN tune with its nation-wide expansion plan for a bigger geographical footprint and deeper market penetration, Hutchison Essar has announced the launch of a major network expansion in Andhra Pradesh, which will see a total investment of about Rs 200 crore this year.

As per the company plans, this southern circle will see roll out of services to 93 new towns, which in effect touches 200 more towns, including 400 cell sites, to carve out a large footprint in the State.

The Managing Director of Hutchison Essar, Mr Ashim Ghosh, said, in July last year, "We were the first operator to roll out the fourth licence network. Once again, we have rolled out a record new number of cell sites in Andhra Pradesh over the last quarter, which is amongst the fastest by any operator in such a short time. This brings our investments in South India to over Rs 1500 crore, of this Rs 500 crore has been spent in Andhra Pradesh circle alone.

"Following these initiatives, we not only have a wide coverage of towns in Andhra Pradesh but also bring to the people of the State advanced features like nationwide GPRS, MMS which makes it one among the most contemporary networks in the world," Mr Ghosh said addressing a press conference here on Thursday.

The Chief Operating Officer for Andhra Pradesh, Mr Kumar Ramanathan, said, "We are committed to providing our customers with superior service and products which help them communicate at will. In the past year, Hutch in AP has delivered on these commitments and will continue to do so. Out of the 440 cell sites we have deployed in the State, 170 are located in Hyderabad. Of these a good number, about 59, are deployed in large, intense user requirements centres like the Hitec City for enhanced coverage."

Hutchison has planned overall investment of about Rs 1,600 crore across its networks spanning 10 circles during the year 2002-2003. It is set to expand to 11 circles. After the entry of BSNL, there was churn in the market.

"However, once the IUC regime has been put in place, and the calling party regime has been working well, the situation has changed. Complimented by rapid network expansion, we are amongst the operators that have witnessed faster growth over the last three months while others have just about growing," they explained.

The company is in the process of fine-tuning its strategy for the proposed IPO, which would in all probability be in the middle of next year.

While refraining to further comment on the financials and IPO related plans of the company, Mr Ghosh said, "The company is cash positive and the balance sheet is quite healthy and we are pleased with the company financial performance."

Article E-Mail :: Comment :: Syndication

Stories in this Section
Catching them young, Electrolux style

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line