Will ASCON Phase IV transform ITI?

Rs. 6,900 crore ASCON Phase IV project will boost revenue as well as profitability for ITI as the company now has an order in hand of Rs. 8,700 crore and it is to be executed in 3 years timeframe

ITI is presently undergoing transformation from last two years. The transformation momentum has increased with ITI bagging Rs. 6,900 crore ASCON (Army Static Switched Communication Network) project. ASCON is a large project and it is to be completed in 3 years followed with 2 years of warranty and annual maintenance contract of 8 years.

Before ASCON Phase IV Project, ITI’s order in hand was Rs. 1,600 crore of this BharatNet contributing Rs. 300 – 400 crore, defence contribution was Rs. 150 – 200 crore, datacenter and Aadhar authentication contribution was Rs. 250 – 300 crore and new areas like IoT and Smart Cities contributed Rs. 150 – 300 crore. With ASCON Phase IV project, the order in hand has increased to Rs. 8.700 crore.

The ASCON Phase IV project covers:

  1. Establishment of proposed network i.e. laying of OFC, installation and commissioning of network elements etc. on a turnkey basis to interconnect approximately 300 locations across the country. Integration of the existing ASCON Phase-3 network (ATM based) with the proposed network.
  2. Site preparation in terms of civil works to include construction of new sites, modification of existing sites, fabrication and erection of towers, power conditioning and environmental control.
  3. Establishment of geographically redundant Network Operation Centers (NOCs) and Network Management System (NMS) for this project should be hierarchical.
  4. Establishment of a Satellite Overlay Network based on MFTDMA technology with two geographically redundant hubs ensuring seamless inter-workability with existing SCPC DAMA /PAMA network.
  5. Establishment of high capacity, scalable, DWDM based transmission network with IP/MPLS routing and switching solution.
  6. Establishment of secure high capacity microwave radio links.
  7. Establishment of mobile nodes to include both switching and satellite nodes on high mobility platforms.
  8. Provide T&M equipment for all network elements to include OFC, DWDM, IP/MPLS backbone, radio, satellite etc.
  9. Ensure network synchronization and carry out network audit.
  10. Training of the users at various levels.

For the company’s transformation, the company has focused on three pronged strategy – IoT, smart cities and employee motivation and all these strategies have started paying off in the long run says ITI CMD S. Gopu.

ITI’s transformation is also moving in full swing as telecom manufacturing now contributes 30 per cent, followed by services which contributes 30 per cent and new areas (Smart Cities and IoT) contributes 30 per cent.

The company has six manufacturing plants in Bengaluru, Naini, Rae Bareily, Markapur, Srinagar and Palakkad along with in house R&D in Bengaluru and all manufacturing units are running 24×7. The company is also deploying a second datacenter Tier III Plus at Bengaluru of 1,000 rack spaces and 200 rack spaces datacenter at Naini which will act as a DR site with investment of Rs. 200 crore. The company already has a 350 rack space datacenter which was established in 2009 on PPP model.

ITI Revenue and Profit (in Rs. Cr) 

Parameter – FY15-16 – FY16-17 – FY17-18

Revenue – 1,675 – 1,904 – 2,700*

PAT – 251 – 305 – 450*

PAT stands for Profit After Tax 

* Stands for forecast 

Source: ITI 

In the last two years, the company has witnessed increased in revenues from Rs. 1,675 crore to Rs. 1,904 crore and in FY2017-18, the revenue is forecast to reach Rs. 2,700 crore. Even, the PAT for FY2017-18 is planned to increase from Rs. 305 crore to Rs. 450 crore without any government support. In FY2016-17, ITI’s PAT was Rs. 305 crore as ITI got a grant of around Rs. 500 crore.

The ASCON Phase IV project will be a big boost for ITI and the company is planning to cross revenues of Rs. 2,000+ crore in FY2017-18 for the first time in the last six years said S. Gopu, CMD, ITI.

ITI is back on track as we are marching towards golden era as the company has bid for Rs. 10,000 crore order added Gopu.

All this is win-win for ITI and the company will regain its lost glory.

 

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