Advertisment

Sterlite Industries

author-image
VoicenData Bureau
New Update

A year of dismal performance,

thanks to lack of orders from DoT, Sterlite Industries (India) Ltd last year succeeded in

bringing the numbers back in place. Riding on the growth in the business of optical-fibre

telecom cables, the company is estimated to have posted a turnover of Rs 550 crore during

the fiscal 1997-98.

The business of Jelly Filled

Telecom Cables (JFTC) was increased by over 60 percent while that of the Optical Fibre

Telecom Cables (OFTC) increased by over 500 percent. In the first six months of 1997-98,

the supply of JFTC exceeded 31 lckm against the 14.20 lckm for the corresponding period

last year, thus registering a growth of 118 percent. In the case of OFTC, the sales of the

first six months were about 52,000 fkm (fibre kilometer) while it was barely 1,100 fkm for

the corresponding period in the previous year. The company’s optical-fibre plant,

which is also the largest in the country, also experienced 28 percent growth in production

capacity over the previous year.

For Sterlite, the performance of

telecom business last year was up to its expectations. If the orders it got in the last

financial year are any standard of measurement, Sterlite is likely to retain its

leadership position in the years to come with substantial volume jumping. Going by the

signals from DoT, the company is optimistic about improved performance. Not to mention

that DoT has planned an aggressive line build-up for the Ninth Plan. In the last fiscal,

DoT orders increased approximately by 34 percent over the previous year. With the removal

of restriction on technology, the company feels the demand for OFTC should increase from

the private basic service operators. However, the company does not consider the economic

slowdown had any impact on its business.

The growth strategy continues to

be focusing more on non-ferrous metal and telecommunication sector with



integrated operations and value additions. Recently, DoT has pre-maturely repaid Rs 220
crore to Sterlite against the supplies made in the past on the deferred payment terms.

However, it



continues to balance the presence in JFTC and OFTC. As part of its strategy, the company
has backward integration into optical fibre, and jelly-filled copper cables.

When it comes to the business of

JFTC, the company enjoys the advantage of having low capital cost as well as low

operational cost in the industry. Moreover, the company has to its credit



the ISO 9002 quality accreditation and strong financial base. Sterlite is the first
private sector company in the country



to manufacture optical-fibre cables. With the demand for optical-fibre expected


to grow world-wide at an average CAGR of 18 percent for the next three years, Sterlite
Industry sees prospects in



exports too. 


alt="https://img-cdn.thepublive.com/filters:format(webp)/vnd/media/post_attachments/936b8654d761254f8a748b50f529092541658dd7fc9283b135a30d7abc7647e6.jpg (15262 bytes)">

CEO: Anil

Agarwal



Year Of Start-up: 1975


Turnover: Rs 550 crore (estimated)


Area Of Operation: Telecom cables and accessories


Address: Dhanraj Mahal, 5th Floor, CSM Road, Apollo Bunder, Mumbai - 400 039


Tel.: 022-2855551/285552/285553/2855554


Fax: 022-2836474




Advertisment