>Shilpi Cable Technologies Ltd (SCTL), a company engaged in manufacturing of cables for the telecom sector, has entered into an agreement with Crossbow Telecom Projects Limited(Crossbow) to undertake Turnkey Telecom Service Provider (TSP) business that is in relation to undertake civil and electrical works required for the set up and establishment of telecom infrastructure.
Through this pact, SCTL will establish a separate TSP division within its management control. Crossbow will be responsible for provision of Project Management and Consultancy for all the locations where TSP Projects are implemented. Further Crossbow will also identify the clients, liaison and secure projects on behalf of SCTL after taking due approvals from the board of SCTL.
The division will be managed by a team of members which will be headed by Mr. Rajesh Suri and Nihal Singh, Directors of Crossbow Telecom Projects Ltd. For the operational and decisional efficiency of the new division, Mr. Rajesh Suri has been appointed as a Director (telecom projects) on the Board of Shilpi Cable Technologies Limited and Mr. Nihal Singh of Crossbow Telecom Projects Limited has been appointed as President (telecom projects) of Shilpi Cable Technologies Ltd.
As per the agreement Crossbow will be entitled to 33.33% share of Gross Profit generated from all projects and SCTL will be entitled to 66.67% share of Gross Profit generated from all projects.
Manish Goel, Director of Shilpi Cables Technologies Ltd said that “Our Company was desirous of availing the services of a service provider who has knowledge and expertise to undertake the TSP business. Crossbow approached our company and expressed its desire to provide TSP services to us. SCTL has also assured Crossbow that it will at all times ensure availability of adequate working capital for the TSP business.”
SCTL basically manufactures Radio Frequency cables for the telecom sector and also trades in cable accessories. The company product portfolio includes Radio frequency Cables of various sizes for the telecom sector, low voltage power cables and cable accessories. Its products are used in telecom towers. In mobile towers, feeders are the cables used as a high-frequency transmission medium to carry high-frequency or broadband signals between antenna and its base station. These feeder cables are vital for site’s optimal performance.
Recently SCTL has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an IPO of around Rs 55.88 crores. Issue proceeds are proposed to be utilised for capital expenditure on cable/ wire assembly shop which would require an investment of around Rs. 8.65 crores; for capital expenditure on Tools for 3G enabling the investment would be around Rs. 4.47 crores; for augmenting cable manufacturing capabilities the investment would be around Rs. 16.22 crores; for supplementing the long term working capital requirement for the proposed new businesses by around Rs. 15.54 crores, for making an investment in the subsidiary of the company, M/s Shilpi Cabletronics Limited of Rs. 5 crores and to raise Rs. 3 crores for general corporate purposes . For the year ended March 31, 2010, it has reported net profit of around Rs. 9.04 crore on a total income of around Rs. 174.81 crore.
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Shilpi Cable Technologies Ltd (SCTL) is a company basically engaged in manufacturing of cables for the Telecom sector. The company’s product portfolio includes RF Cables of various sizes for the telecom sector, low voltage power cables and cable accessories.
The Company continues to focus on research and development as a core thrust of its business. They intend to continuously develop customized cables for customers to satisfy their requirements. The factory is located in Chopanki, Bhiwadi, Tehsil-Tijara, Dist. Alwar, Rajasthan. The company makes continuous efforts to apply modern techniques in the manufacturing process as a practice, in order to achieve better quality products. They constantly endeavour to improve productivity levels by optimum resource utilization, improvement in manufacturing process, skill up-gradation of workers, modernization of machineries to achieve better asset turnover.