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Aksh ADR likely next year, scouts for foreign tie-ups

Rumi Datta & Baburajan K

Aksh Optifibre is planning to go for an American Depository Receipts issue. The country's second largest optic fibre company is also looking at international alliances that would enable it to position itself better in the overseas market.

Rajeev Naik, CEO of Aksh Optifibre told said: "We are planning an ADR issue to be floated possibly during the next year. At present, we are waiting for the market to revive. We would like to see the stock price go up, may be to the over Rs 700 levels." He, however, refused to divulge further details.

Aksh is also looking at acquisitions in the country as part of its growth plan. "If we get an optic fibre company with good human resources practices, we will look at the option. However, we have not yet initiated any discussion for the purpose," Kailash S Choudhari, managing director, said.

The company is also focussing on exports and has targeted an increase in exports to 30 per cent from 17 per cent at present by 2002. "We are in the process of finalising an international alliance. This would help us in establishing a toe-hold in the foreign market," Choudhari said.

Aksh Optifibre has decided on a capital expenditure plan of Rs 1.07 billion to enhance its optic fibre, optic fibre cable and FRP capacities. The company will expand its current capacities of optical fibre cables from 82,038 ckm to 210,000 ckm, its fibre capacity from 1.4 million fkm to 5.3 million fkm and FRP capacity from 300,000 km to 1 million km.

Funds will be deployed in the next two years. "We are raising Rs 400 million through a term loan from Industrial Development Bank of India and the remaining around Rs 600 million will come from internal sources," Naik said.

Aksh Optifibre is currently working with some companies in China to bag orders that range between $20 and $200 million. Recently, it has bagged an order from Bharat Sanchar Nigam for Rs 600 billion.

"We are planning to achieve an export target of about $200 million over the next three years. With a presence in the US, Aksh is also exporting to the UK, Indonesia Thailand, Taiwan, Israel and Jordan," he added.

Aksh has signed an export contract for $172 million for cables to the US to be supplied over the next three years. The foreign exchange earnings through exports amounted to Rs 241 million in the previous year representing an increase of 488 per cent over the last year.

Aksh has two manufacturing facilities at Bhiwadi and one at Jaitpura in Rajasthan. The plants produce a variety of cables such as singlemode and multimode cables, duct cables, armoured and aerial cables.

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