BPL Mobile plans Rs 625cr capex

BPL Mobile today launched Project Rapid Growth, and is planning to invest Rs 625 crore during the current fiscal to add 1.5 million wirefree consumers and capture 35% marketshare in new customer acquisitions.

"The proposed investment would also increase company's revenue to Rs 1,300 crore and increase operating profits to Rs 650 crore in 2005-06 - a growth of over 28% and 59%, respectively, when compared with the previous fiscal," Rajiv Chandrashekhar, chairman of BPL Mobile, said.

He said the company was expecting a operating cash flow of Rs 680 crore in the current fiscal, and the planned investment of Rs 625 crore will be made from the cash flow.

Project Rapid Growth, which follows the successful implementation of Operation Accelarated Clawback last year, will see BPL Mobile investing in technology to introduce new products and services besides enhancing service standards.

The company will also add 225 new towns under its network, install two MSCs, two intelligent networks and over 800 base stations during the current fiscal under the new growth initiative.

The company had launched Operation Accelerated Clawback last year (2004-05), which saw it achieve record growth. While revenue increased 39% to Rs 1,012.2 crore, operating profit increased 35% to Rs 406.6 crore.