Financial Daily from THE HINDU group of publications
Monday, Sep 02, 2002
Corporate - Diversification
Surana Tele to diversify into power sector Bhagyanagar Metals to follow suit
HYDERABAD, Sept. 1
SURANA Telecom Ltd (STL), the Hyderabad-based Rs 103-crore telecom cables and instruments company belonging to the Surana Udyog group, is diversifying into the power sector.
The company is currently engaged in the manufacture of jelly filled telecom cables, optic fibre cables, jointing kits, optical testing and measurement instruments.
According to the Managing Director, Mr Narender Surana, STL, in view of the new reforms fuelling growth in the power sector, the company saw bright prospects for its foray. ``We plan to make transformers, electronic meters, distribution of boxes and other related accessories for high voltage distribution system (HVDS) and micro controllers (logical) for tripping of 11KV feeder circuit breakers,'' Mr Surana told Business Line.
STL, which emerged as the lowest bidder for the Rs 40-crore HVDS project of the Central Power Distribution Corporation, expects to kick off its new operations with this project. It has also submitted the prototype of micro controllers and expects the clearance shortly.
``We are at an advanced stage of negotiations with a US-based power equipment giant for technology collaboration for our foray into the power segment,'' Mr Surana said.
Buoyed by the success in marketing the products in the recently diversified area of CDMA technology, the company is also planning to start manufacturing the CDMA sets in a phased manner. STL was negotiating with a global CDMA sets manufacturer and would participate in the bids recently invited by Bharat Sanchar Nigam Ltd.
However, he declined to disclose the identity of the CDMA giant. Mr Surana expressed his concern over the falling demand for jelly-filled telecom cables and declining prices of optic fibre cable.
``While we expect to generate a business of around Rs 40 crore from the power foray, we also foresee a drop of around 40 per cent in our existing business volumes owing to the falling prices of jelly filled cable and optic fibre cable. As a result, despite new business, we hope to maintain the volumes during the current fiscal at the previous year's level,'' he said.
Bhagyanagar Metals to enter software:
Bhagyanagar Metals Ltd, the Rs 152-crore jelly filled cables and related products manufacturer belonging to the same group, proposes to enter software and power sectors. The company is also planning to diversify into manufacturing copper foils.
According to Mr Narender Surana, the business strategies of the company were being recast to face the downturn and intensify efforts to seek new geographical markets, new clients and new areas of operations in view of the slowdown in the telecom industry.
While the finer details on software foray were still being worked out, he said the company had recently applied for an office space of 8,000 sq ft at the Hitec City here, Mr Surana said.
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