The Hindu Business Line : Kavveri Tele targets Rs 100-cr turnover

Bangalore May 11 Kavveri Telecom Products (Kavveri), a Bangalore-based telecom firm, is targeting Rs 100 crore in turnover this fiscal. It has invested Rs 15 crore in expanding its contract manufacturing plant in Jigani, Karnataka.

This BSE-listed company manufactures antennae, RF products and solar panels in its four facilities — three in Bangalore and one in Puducherry. Last fiscal (ending March `07), Kavveri had a turnover of Rs 50 crore, with a profit of Rs 6 crore.

The company hopes to make Rs 100 crore this fiscal and maintain the same percentage of profit, according to Mr D. Venkateswarulu, Company Secretary, Kavveri. It employs 250 people in India and 60 in Canada, through its subsidiary Kavveri Technologies.

The company is planning significant expansion of its contract manufacturing plant in Jigani, Karnataka. An initial investment of Rs 15 crore has already commenced, said Mr Nicholas L., Director-R&D, Kavveri. The facility manufactures wireless antennae and other telecom products for public safety usage for two North American clients.

The company currently makes Rs 2 crore from exports, but this is expected to "go up substantially" as the company enters the US telecom market with its recent acquisitions paving the way.

Acquisition

Kavveri announced it has completed acquisition of Canada-based DCI Digital Communication Inc, which makes filters, for CAD$2 million.

Frequency filters are getting increasingly important in a telecom network, with the emergence of new wireless technologies such as 3G and WiMAX. "Electromagnetic spectrum is getting crowded. Filters are needed to ensure communication continues without overlapping of frequencies," said Col. T.S. Gururaj, General Manager, Business Development (Telecom), Kavveri. A GSM base station uses up to six filters.

DCI will be headed by Ms Uma Reddy as President. With this acquisition, the company's product portfolio increases to encompass VHP and UHF bandpass filters, low pass filters, Wi-Fi filters, multiple-window filters, combiners, tower-top amplifiers, broadband duplexers and CDMA repeaters.

Filter market

The Indian filter market is worth Rs 50 crore, of which the company claims to have 50 per cent market share. Through this acquisition, Kavveri expects to increase the market share in India as well as its reach into North American market. Filters business contributes to 25 per cent of Kavveri's business.

More Stories on : Outlook | Telecommunications

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GSM mobile growth rate down in April

Smart City deal to be signed tomorrow

New software for security event log

Cricinfo in talks with mobile phone cos to tap new markets

7Seas Tech launching online gaming portal

Google inks pact with AP Govt to buy land

eInfochips partners with Nirma varsity

Govt sets up group to plan rural broadband rollout

Finally, Sun sets Java `free'

Kavveri Tele targets Rs 100-cr turnover