Rank 33: HTL: Divestment Doldrums

For this four-decade old company, FY 2001-02 signaled a new birth. The
reincarnated Hindustan Teleprinters Ltd (HTL), which is one of the key telecom
equipment manufacturer in the country, saw a change in management control. From
being a government-owned company, it has moved into the hands of Himachal
Futuristic Communications Ltd (HFCL). The government divested 74 percent of its
stake for Rs 55 crore, retaining only 26 percent of equity. With HFCL taking
over, HTL’s product spectrum, which included digital switching, switching
accessories, access products, and terminals, will give a further boost to the
company.

In FY 2001-02, HTL did a total business of Rs 265 crore. Since the hands have
changed just two quarters ago, the real push is expected in 2002-03. What is
expected to drive the growth is the synergy between HFCL and HTL. While HFCL has
been a leading manufacturer of all transmission equipment, HTL manufactures
switching equipment. The takeover would enable the combined duo to offer a range
of telecom products. Also, on the services front, it will assume a new meaning.
HTL is also looking at aggressive product launches. It is exploring the
possibility of making CDMA terminals and CDMA network equipment in a tie-up with
one of the existing CDMA majors like Samsung, Hyundai, or Lucent.

HTL  TURNOVER FACTSHEET CEO : YS Choudhary Year of Start-up : 1960 Area of Operation : Switching, transmission, and datacom products Address : GST Road, Guindy, Chennai 600 032 Tel  : 044-2321589 Fax : 044-2320340 S W O T Strength  : A strong products company Weakness : Large workforce Opportunity : Non-BSNL market and exports Threat  : End-to-end solution providersA