Recommended Price : 23.20
Kavveri Telecom Products (KTPL), incorporated in 1991, manufactures base station antennas, accessories and radio frequency products like wimax serving defense, telecom operators and wimax service providers. Its clientele includes Motorola, Ericsson, Nokia, Nortel, Vodafone, Idea, Reliance Communication, Spice, BSNL and Worldspace.
KTPL has four manufacturing facilities with a total capacity of 25,000 base station antennas. It plans to enhance it base station to 35,000 over the next six months. The company also plans to double its antennae and RF capacity from the existing 100,000 to 200,000. KTPL is setting up a third manufacturing facility at Bangalore with an investment of Rs15cr. This plant is expected to commence operations by March 2008.
The company has recently acquired Til-Tek and DCI, two North American companies, during the last year with an investment of Rs280cr. Til-Tek is a leader in antennas and DCI in RF products and filters. With this acquisition, the company now has the capability to manufacture base station antennas incorporating the latest technologies on par with the best in the world. This acquisition also gives the company access to customers, vendors, intellectual property, trademark, copyrights and more importantly, brings into the company’s fold, seven international patents.
KTPL bagged rate contracts from three telecom majors viz Vodafone Essar, Tata Teleservices and Idea. These contracts are for supplying its products required at base stations being rolled out by each of these players during FY08. This should allow it to grow proportionately with the increasing client base of these majors.
Recently DOT has approved new Telecom license to several new and existing players. This will further enhance the order book of the company. We believe KTPL to be the key beneficiary of the robust growth in the sector as it has registered patents and superior technology.
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