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V&D Top 10 Company review - TCIL

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CIOL Bureau
New Update

Telecommunications Consultants India Ltd (TCIL) has remained at #4 position in V&D100 rankings for the second consecutive year.

It has posted a total turnover of Rs 639 crore in 1998-99, a growth of 7.88 percent over

1997-98. Net profit rose to Rs 44 crore. The company projects a turnover of Rs 1,000 crore

for the current fiscal.

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CEO: AS Bansal



Year Of Start-up: 1975


Area Of Operation: Consultancy, turnkey projects, software


Address: TCIL Bhavan, Opp Savitri Cinema, Greater Kailash - I,


New Delhi - 110 048


Tel.: 011-6432666/6282255


Fax: 011-6282244


Website: www.tcil-india.com





It was a hectic year for TCIL as orders

queued up. The order book of the company stood at Rs 900 crore in the first three

quarters. Expectedly, the lion’s share of the orders came from overseas. At Rs 700

crore, these orders accounted for 77.8 percent of the total order booking.

The year was eventful for TCIL. It took

significant strategic decisions to diversify its operation. The company tied up with JMS

Worldwide to become an ISP. It is also planning to enter into a JV with MTNL to provide

basic telecom services in the comparatively "less lucrative" telecom circles

like Jammu and Kashmir and the NorthEast. Another major decision taken by this cash-rich

public sector company is to get into the long-distance telecom services, slated to be open

for competition on 1 January 2000. TCIL is planning to float a JV company for the purpose.

IRCON, the public sector railways construction company, and TCIL will together hold 40

percent equity in the JV while another Indian company will hold 11 percent. TCIL is

scouting for a foreign partner, which will hold the balance 49 percent. The JV will also

participate in the Railways optical fibre network project on Build Operate Own Lease

(BOOL) basis. The investment in the project would be about Rs 1,000 crore.

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Outside India, TCIL is executing projects

in Ghana, Mauritius and Madagascar. TCIL is playing an important role in promoting Indian

technology abroad. In Madagascar, it is using WILL equipment based on

CorDECT, a system

developed by IIT Madras. Two Indian manufacturers, Shyam and Crompton Greaves, will supply

the equipment. In Comoros, it is using C-DOT exchanges.

TCIL, has a number of JVs and subsidiaries,

which cater to different market segments in telecom. Tamilnadu Telecommunications Ltd, a

JV with Tamil Nadu State Industrial Development Corp. to manufacture Jelly Filled

Telephone Cables (JFTC) is doing well and is a V&D100 company. The company has

diversified to optical fibre cables, with technology from Fujikura of Japan. TCIL

Bellsouth, another JV, is also doing well in the telecom OSS market. TCIL has a JV with

Shyam Telecom and, a few foreign operators, for cellular services in

Rajasthan. TCIL Saudi

Co Ltd, a JV with Natel of Saudi Arabia, is also doing well. However, its JV with Nepostel

of Netherlands for telecom software—Orange Telecom—is rumoured to be called off,

though TCIL has not confirmed it.

TCIL has grown by a modest 7.9 percent, but

has not been able to succeed at bagging major turnkey contracts in India. Indian turnkey

market is likely to boom after the domestic long-distance service is opened up for

competition. TCIL, with its experience in the field could be a major player here.

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