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Zylog System (India) Ltd has secured 30,000 customers for its WiFi business, Chairman and CEO, Mr Sudarshan Venkatraman, told Business Line recently.
Zylog System (India) Ltd is a wholly owned subsidiary of Zylog System Ltd, a company listed on the NSE and BSE.
The wireless broadband service fetched the company revenues of Rs 23 crore in 2010-11. “We are EBIDTA positive,” he said.
In the current year (2011-12), Zylog System expects to increase its customer base to 1,00,000.
Zylog had indicated the same number for the first year of the launch of its WiFi business. The business was launched in Chennai in June 2009.
However, growth is expected to happen in the current year, because Zylog is ramping up the roll-out of the service across the country. Today, the service is available in 154 locations (not counting colleges and campuses).
In 2011-12, the company will offer these services in 170 more locations in the country.
Out of a planned investment of Rs 80 crore, the company has spent Rs 28 crore. The rest will be invested in the current year.
Mr Venkatraman said that Zylog finds that the average revenue per user in the rural areas is better than in the metros.
Big play in eGovernance
Meanwhile, Zylog is gearing itself up for a big play in the eGovernance area.
The company is one of the service providers for the Union Government's Rashtriya Swasthya Bima Yojana (RSBY) — an insurance scheme under which the Government pays the premium for below-poverty-line families.
Zylog, which got into this line of business only in November 2010, has so far issued 6 lakh cards to people in Kerala and Bihar. Next year, it expects to issue 50 lakh cards.
Zylog also issues and manages smart cards for road licences in Karnataka . It has so far issued 27 lakh cards.
If the State Government mandates conversion of existing licences to smart-card-based licences, another 40 lakh cards will be issued.
The company did not disclose the profits from these lines of business, but said that the profits are embedded in each card issued.
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