Nettlinx to expand its product line

Nettlinx Limited, a Hyderabad-based internet service provider, is entering the business of software services, internet telephone service and networking apart from diversifying into food business.

"We want to become a multi-product company to enhance our top line," Nettlinx executive director Vijay Bhasker Reddy said, adding that the company would be investing Rs 40 crore over a period of five years in expanding its product line.

He said that the company would be setting up special purpose vehicles (SPVs) for different products and the expansion programme was proposed to be funded through Rs 6 crore of internal accruals, Rs 12 crore to be secured from SPV partners and the remaining Rs 22 crore as loans from banks.

Reddy told Business Standard that Nettlinx had recently acquired a 52 per cent stake in Regional Food Research Analysis Centre, a Bangalore-based food testing laboratory, at a cost of Rs 80 lakh. The centre has the capacity to test 6,000 samples of water, milk, food products, vegetables and fruits per month.

Nettlinx is also in talks for acquiring another food testing laboratory in the western region of the country besides looking for collaboration with foreign companies.

The company is planning to provide food testing facilities to Indian as well as foreign companies. It also has a proposal to enter food business, and is aiming at products that have higher shelf life.

According to Reddy, Nettlinx would be investing an additional Rs 2.5 crore in the Bangalore laboratory, which has a paid-up equity capital of Rs 1.6 crore. The company is expecting a turnover of Rs 2 crore from the facility in the current year and Rs 3.5 crore per annum two years later.

Nettlinx is currently working with IBM Scon (Server Consolidation). It supports the worldwide business partner network on server consolidation through a team based in Hyderabad.

The company was also providing call centre customer support to a Canada-based company, he said.