Sterlite Technologies Limited (“Sterlite”), a leading global provider of wire and cable solutions for the telecom and power industries, today announced that it has received contracts for its fiber optic cables for deployment by leading telecom incumbents in Sub-Saharan Africa for the expansion of their telecom backbone infrastructures. The contracts are worth a total of US$ 5.2 Million (~Rs 24 Crores) to Sterlite and supplies would be executed with FY 2008-09.
Sterlite’s telecom & power products have been sold in 24 countries across Africa. Sterlite has a firm market share of about 14% for bare overhead power conductors and a growing market share of about 10% for fiber optic cables. Sterlite’s past successes in the region include contracts with reputed companies like Sudan Petroleum Pipeline Company (SPPC). In order to service the growing needs of its customers in Africa, Sterlite has recently opened its sales & marketing office in Johannesburg, South Africa.
Says K S Rao, COO (Telecom Business) - Sterlite Technologies Limited, “A key aspect of our growth strategy has been a concerted focus on high-growth and developing markets. The African market has reported a CAGR in demand of about 10% between 2004 and 2008, with the demand being prompted by new inter-city backbones deployed by incumbents and alternative operators such as power utilities, oil and gas pipeline owners and highway authorities. Since our entry into the African market about 3 years ago, we have achieved significant milestones in product acceptance, market penetration and customer retention. We believe that Sterlite is well positioned for future growth in this region.”
Keeping with the unprecedented growth in demand from the global and Indian telecom and power sectors, Sterlite is doubling the manufacturing capacity at its Optical Fiber facility to 12 million-km, tripling the manufacturing capacity at its Fiber Optic Cables facility to 6 million-km and is increasing the manufacturing capacity by 40% at its Power Conductors facility to 160,000MT. All of Sterlite’s capacity expansion programs are well in progress and are scheduled to complete within the current fiscal.
About Sterlite Technologies Limited
Sterlite Technologies Limited (formerly, Sterlite Optical Technologies Ltd) is India’s leading global provider of power transmission conductors, optical fibers, telecommunication cables and telecom integration & managed services. It is India's only fully integrated optical fiber producer and among the Top 5 global manufacturers of power conductors. Sterlite Technologies Ltd. (sterlitetechnologies.com) is listed on the National Stock Exchange and Stock Exchanges at Mumbai and Kolkata. Sterlite Technologies has shown a consistent robust financial growth with CAGR of 75% in Net Revenues and CAGR of 115% in Net Profits for the period 2004-2008. The company has a world-class optical fiber manufacturing plant in Aurangabad, India, and telecom cable and power transmission conductor facilities in Silvassa and Haridwar, India.
Forward-looking and cautionary statements
Certain words and statements in this release concerning Sterlite Technologies Limited and its prospects, and other statements relating to Sterlite Technologies’ expected financial position, business strategy, the future development of Sterlite Technologies’ operations and the general economy in India, are forward looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of Sterlite Technologies Limited, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Sterlite Technologies’ present and future business strategies and the environment in which Sterlite Technologies Limited will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of Sterlite Technologies’ industry, and changes in general economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Sterlite Technologies’ control, include, but are not limited to, those risk factors discussed in Sterlite Technologies’ various filings with the National Stock Exchange, India and the Bombay Stock Exchange, India.
These filings are available at nseindia.com and bseindia.com. Exchange rate considered 1US$ = Rs 46