The Hindu Business Line : ITI mulls selling off surplus land

Turnaround plan
Hopes to garner orders worth Rs 2,500 crore for GSM network infrastructure equipment.
Expects Rs 300-crore order from Defence sector and a firm purchase order worth Rs 1,266 crore.

Bangalore May 7 ITI Ltd, the ailing telecom equipment company, plans to unlock the value of its surplus land assets, which is estimated to fetch about Rs 600 crore, to partially meet its turnaround objective set for 2009-10. Even as it is awaiting the Government's approval of the proposal, which is part of an overall revival plan it had submitted in 2004, ITI hopes to invest Rs 350 crore over the next five years to cash in on new opportunities.

The company hopes to turnaround to make profits by 2009-10, said Mr Pritam Singh, Chairman and Managing Director. With positive recovery signs during the last fiscal and also making inroads into new businesses of broadband market and GSM and CDMA mobile telecom network equipment supplies, ITI hopes to generate adequate funds for meeting its investments and expansion.

The company hopes to garner orders worth Rs 2,500 crore for GSM network infrastructure equipment this year to achieve its MoU target of Rs 4,770 crore for the fiscal 2007-08.

Mr Singh told Business Line that an expected Rs 300 crore order from the Defence sector and a firm purchase order worth Rs 1,266 crore, should improve its financiial health. With a gradual reduction of its debt from Rs 700 crore in the last three years and increase in its turnover at Rs 1,842 crore during FY 2007, ITI was in better health to achieve its targets, he said.

With about 30 per cent increase in Q4 2007 recovery to Rs 1,144.4 crore and reduction in the loss to Rs 7.17 crore from Rs 127.98 crore for the same quarter in 2006 ITI hopes to break even during the current fiscal, Mr Singh said.

"The turnaround strategy will be based on harnessing the vast potential in the areas of wireless and personal communications by securing the status of being the largest indigenous manufacturer and supplier of GSM and CDMA WLL equipment and with more customer focus, particularly with BSNL, MTNL and Defence".

ITI also hopes to reduce its costs by progrssive indigenisation of GSM inputs while leverage its Mankapur unit's capability in GSM equipment increase its volumes and reduce the margins pressure, Mr Singh said.

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