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Alcatel Modi

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VoicenData Bureau
New Update
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CEO: Raghu

Murti



Year Of Start-up: 1994


Turnover: Rs 300 crore


Growth: -36 percent


Area Of Operation: Telecom infrastructure equipment


Employees: 400


Address: Plot No. 25, Electronic City, Sector 18, Gurgaon - 122 015


Tel.: 01274-341728


Fax: 01274-341327


Website: www.alcatel.com







The fiscal 1997-98 was a good

year for Alcatel Modi Network Systems Ltd though it could not match the turnover it made

in 1996-97. The fiscal 1996-97 was a milestone in the history of Alcatel Modi, when it had

grown 371.41 percent compared to the fiscal 1995-96.

In the last fiscal the company

posted a turnover of Rs 300 crore against Rs 408 crore in the fiscal 1996-97. It has thus

registered a negative growth of 36 percent. And, the company has slid from the #6 rank in

V&D Top 10 in 1996-97 to the #8 position this time.

The company is yet to make out

the details of the profit and loss. There are a number of reasons for the company not

living up to the turnover of 1996-97. First, orders did not flow the way it was expected

to from DoT, the prime customer of any switching company. Two, the general economic

slowdown has delayed many a decision of other potential buyers. Third, the company could

not capitalize on its image as one that knows the Indian market better than any other MNC

as its operation here dates back to a few decades.

However, it continued to be the

top switching company in India for another year. In its traditional

stronghold—DoT— the company continued to be on the top with an advance purchase

order for 260k lines for its OCB switches at a per line price of $157.

Another feather in the cap of

Alcatel Modi was its repeated success in the private operators market. The first private

basic services provider in India, Bharti Telenet in Madhya Pradesh, chose Alcatel’s

A1000 AS12 switching system. The contract was worth Rs 180 crore. Hughes Ispat, the

licensee for Maharashtra, has also chosen Alcatel switching systems. This year, in all

probability, will see the six licensees of basic services rolling out their projects. With

the two orders in hand, the company is hopeful about the remaining four companies about to

start basic services.

However, Alcatel’s major

success was restricted to switching. In the large switching business, Alcatel enjoys more

than 25 percent marketshare. In the other emerging area of access technologies, Alcatel

lagged behind. In Wireless In Local Loop (WILL), with just the DECT-based solution,

Alcatel Modi is not even considered a strong contender.

Another area which would have

dictated the fortunes of Alcatel Modi was the GSM equipment business. Here, also the

company did not see any major breakthrough. Most of the operators who expanded their

networks chose not to change loyalties. The only new contract signed in 1998-99 went to

Ericsson.

The recent takeover of DSC

Communications by Alcatel Networks Inc. at an estimated $4.4 billion is expected to

increase Alcatel’s access in the telecom equipment market. Although the changes at

the local level have not been ascertained, the takeover will have its impact on the Indian

market as well. 

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