Tejas to diversify into wireless, investing Rs.17.7 billion
Looks to address the 3G, 4G and LTE opportunity in India and elsewhere
Tejas Networks is among the few technology-focused companies in India that has managed to hold its own in the competitive world of optical networking. It's a no-brainer that the Government's focus on localization must provide an incredible opportunity to this company. And surely enough, it has responded to the challenge.
Among the 15 proposals worth Rs.50 billion received by the Central Government under its electronics manufacturing subsidy scheme, called M-SIPS, the largest one has come from Bangalore-based Tejas. Samsung Electronics and semiconductor testing firm Tissolve Services have also submitted big proposals.
Tejas, which has applied for subsidy to the Department of Electronic and Information Technology plans to invest around Rs 17.69 billion to build and expand its capabilities in areas such as 3G, 4G and LTE.
Sanjay Nayak, co-founder and CEO of the company, while confirming the investment proposal, said India is seeing resurgence in such kind of equipment as data is going to play a key role in the next phase of telecom growth.
Nayak said because of the company's initial focus on optical transport equipment, it was earlier able to address only 10 per cent of the overall opportunities. "With the new investments and product ranges, Tejas Networks is targeting to address about 60 per cent of the overall needs of the telecom operators in the next 10 months which will gradually increase after that."
The funds which will be invested over a period of time will go towards expanding the company's existing capabilities in Bangalore and Pondicherry.
Apart from Tejas, Samsung Electronics has proposed an investment of Rs.8.44 billion and Tissolve Services, a semiconductor testing company plans to invest Rs 7.5 billion.
The government announced the Modified Special Incentive Package Scheme (M-SIPS) last year with the objective of attracting electronics manufacturing firms to invest in the country. Under the scheme, the government has announced upto 25 per cent subsidy on capital expenditure.
Based on story in Business Standard
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