Lambda Eastern targets 1000 p.c. growth in 5 years

Lambda Eastern Telecommunication, a
joint venture between Lambda Telecom and ARB Bearings, expects 1000
per cent growth in the next five years from its telecom turnkey
solution, battery and solar business.

“We are diversifying our business to
cover various aspects to telecom business, especially power issues.
Our company has been witnessing almost 100 per cent year-on-year
growth. At present our annual turnover is Rs 200 crore approximately
and we expect it to be Rs 2000 crore by 2015,” said Surinder Goel,
executive director, Lambda Eastern Telecommunication Limited (LETL)
in an interaction with CIOL.LETL has recently set up manufacturing
facility for power batteries with an investment of $5 million in
Uttarakhand. This plant will be operational in two months' time and
will have a monthly production capacity of 40000 units.

“Initially we will start production
of VRLA batteries. Trials of these batteries are on and commercial
production will start in October this year. We are also working out
on a technology partnership for high-end Gel batteries for solar
power. Telecom companies will be our first target segment,” said
Goel.Goel mentioned that on an average a
company has to spend Rs 15000 per month for power on a BTS. He sees
huge business opportunity in addressing power concerns of telecom
service providers on BTS site where most of the BTS in the country
run on diesel generators set.

“The cost of power is huge in running
BTSs across the country. Batteries play an important role in
controlling various equipment at BTS. Over the years we have
developed good relations with telecom companies. We will provide
these batteries at 2-3 per cent lower price than competition. This
2-3 per cent means a huge margin for telecom companies,” said Goel.

The company is also venturing into
solar power business where it has proposed to set-up 50 MW of solar
park in the next two—three years.

“We will set-up this solar park under
government projects. If we get approval for some of the parks, which
we are hopeful of getting, we will raise Rs 600 crore from debts,”
said Goel.

LETL is planning the dilution of up to
10 per cent equity in the company to Rs 100 crore for infusing in
telecom turnkey solutions and establishing telecom solar sites.

“We are open to private investment
with venture capitalists or private investors. This depends, of
course, on a number of factors. If things are favorable then we may
go as high as 10 per cent of equity dilution but not more than that,”
said Goel.

LETL has received orders to set-up
approximately 800 BTS in India and Bangladesh by end of this
financial year.