Rank 79: Bhagyanagar Metals: Price of Dependence

Bhagyanagar Metals Ltd, the Hyderabad-based company of Surana Group, is a
dominant player in manufacture of Jelly Filled Telephone Cable (JFTC). During
the past year, it supplied 15.6 LCKM of PIJF cables to BSNL and MTNL taken
together. For Bhagyanagar, BSNL/MTNL are the prime clients. And its fortunes are
majorly dependent on the procurement by BSNL/MTNL. In 1999-2000, it supplied
about 17.38 lckm of cable during the year and did a total JFTC revenues of Rs
127.68 crore. In the last fiscal, its total revenues stood at Rs 94 crore.

One of main reason for the company to be doing well in the past few years has
been because of its huge manufacturing bases. It has a manufacturing base in
Hyderabad with a licensed and installed capacity of 37 lckm JFTC. In 2001-02 it
commissioned another plant in Goa for PIJF cables under diversification and
backward integration program.

The Jelly-filled division has been setup with a total production capacity of
4.5 million ckm in various sizes from 5 pairs to 2,400 pairs. On the other hand,
the Polythene Compounds division manufactures JFT cables and optical fiber
cables with an annual capacity of 10,000 MT per annum and is approved by BSNL.
The company is ISO 9002 certified and even its Goa unit was given an ISO 9000
accreditation.

Bhagyanagar Metals TURNOVER FACTSHEET CEO : Davendra Surana Area of Operation : Manufacture of jelly-filled telephone cables and wires Address : 5th Floor, Surya Towers, SP Road, Secunderabad 500 003 Tel  : 040-7841198/7846013 Fax : 040-7848851 Web Site : www.surana.com  S W O T Strength  : Strong manufacturing base and financials Weakness : Dependent on BSNL/MTNL Opportunity : Growing telecom market in the country and the subcontinent Threat  : Aggressive pricing