HFCL acquires 74% equity in HTL

NEW DELHI: In what may be termed as the first disinvestment of the financial

year, 74 per cent equity of Hindustan Teleprinters Ltd. (HTL), a government of

India enterprise, was transferred to Hindustan Futuristic Communications Ltd. (HFCL),

for Rs 55 crore. HFCL, Department of Telecom (DoT) and HTL signed the agreement.

Mahendra Nahata, chairman of HFCL group, handed over the cheque to

Communication minister Pramod Mahajan at a function in New Delhi on Tuesday.

The Inter-Ministerial Evaluation Committee, based on the bids of the

strategic partners and report from global advisors KPMG and Asset Valuers,

evaluated the bids.

Speaking on the occasion, Nahata said that the acquisition of HTL, which was

engaged in the manufacture and supply of switching, transmission, access and

data products to the telecom sector would contribute to the expansion of HFCL's

manufacturing portfolio. HFCL would take advantage of the synergies in

marketing, after sales service, etc of both the companies.

He added that HFCL was aiming at an increase in HTL's turnover to Rs 1,000

crore in the next financial year as opposed to a turnover of Rs 400 crore this

year. He ruled out any employee retrenchment.

Outlining the expansion plans he said that HFCL could invest up to Rs 20

crore as and when needed in the future.

Y S Choudhary, managing director of Himachal Exicom Communications Ltd. has

been nominated as the managing director of HTL.

Apart from expanding its product portfolio, HFCL would also benefit from the

existing facility of 10 per cent reservation of orders of HTL by BSNL and MTNL.

The quota would continue for two years of purchase cycle after disinvestment.