Financial Daily from THE HINDU group of publications
Wednesday, Jun 14, 2006
Financial Daily from THE HINDU group of publications Wednesday, Jun 14, 2006 |
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Info-Tech
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Interview ITI confident of matching BSNL's lowest bid offer
One stock, which has done very well as you would have expected to do is ITI. The BSNL order is out, it is a mammoth order and ITI hopes to bag a large part of it, which is why it is up 17 per cent at Rs 37.35. Technical bids for BSNL GSM tender are to be evaluated and financial bids are to be opened in a couple of months. Other companies that bid for this tender are Nokia, Ericsson, Motorola, Siemens and ZTE. Eighteen companies took application for BSNL's tender for 45 million lines. ITI now has to match lowest financial bidder for one-third order. The ITI Chairman-cum-Managing Director, Mr Y.K. Pandey, says as far as technicals are concerned, the company has demonstrated its ability. "It is basically the financial part, which is more important. We have a relationship with Alcatel and once the financial part is known to us, I hope we will be able to meet the prices that are decided,'' he explains. Excerpts from CNBC - TV18's exclusive interview with Mr Pandey: What do you do now, match the lowest bid? Yes. Can you explain what exactly is the road map now that the order has been announced? We are already in the process of completing our 3 million orders, which was subsequent to the first million that we finished. We are also working out the final details on another 2 million with BSNL, which is an expansion of the previous projects. Then we are going to take up this large order, which will be over in the next couple of years. We have already started manufacturing facilities at Mankapur and Rae Bareilly, which are manufacturing Base Transreceiver System (BTS). All the BTS that will be required for this project will be coming from our Rae Bareilly and Mankapur plant. All the 3 million BTS have been supplied from these two plants. We have released 5-lakh lines against the 3 million project on March 27. We are releasing another 7 lakh within a week and will be continuing with the work. We are deputing our large manpower. What is the offer that you have to make to match the lowest financial offer in money terms and is there any other parameter that you have to qualify or is it just the financial bid now? As far as technical is concerned, with the first million and three million, we have demonstrated that there is absolutely no problem and we will be doing all that technically. Some minor specific changes can always be taken care of. It is basically the financial part, which is more important. We have a relationship with Alcatel and once the financial part is known to us, I hope we will be able to meet the prices that are decided. Do you think at the lowest bid you would still make money on this BSNL offer or you might be sacrificing quite a bit of margin to bid at the lowest price? Margins may have to be sacrificed depending upon the price that is fixed. There is an urgency to take as much orders as possible, but we do not take them on loss basis.
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