Spanco to Invest Rs 300 crore for Expansion

by Sonal Desai    Dec 27, 2006

Spanco telesystem will be investing Rs 300 crore in expansion and related activities.

The proposed funds would be raised in a debt equity ratio of 1:1, of which the equity component will be raised either through QIP or Foreign Currency Convertible Bonds (FCCBs).

Deepak Bhagchandaney, director- sales and marketing, Spanco, said, “We will use Rs 80 crore towards the railway call center project.”

Spanco, the lead bidder of the consortium, along with Stracon Backoffice Solutions Limited and BSNL will implement and run four call centers to be developed for the Indian Railways Catering and Tourism Corporation (IRCTC) over a contract period of 10 years.

“We have recently signed a JV with a local partner, Golden Key Solutions (and Al Bhaja Group company) and want to increase presence in the middle east, with special focus on Oman, Qatar, and UAE. We are considering acquisitions in the associated field. Rs 25 crore has been earmarked for these projects,” he added.

The company had acquired a 51% stake in Skandsoft Technologies, which has SETU, a patented middleware platform for RFID applications.

Spanco is conducting pilot projects with leading hospitals, banks and defence security in India, and would soon announce full- fledged deployments in some of these.

The company has put aside Rs 20 crore for marketing, business development and enhancement of the RFID platform. The company has already obtained certifications from international bodies like EPC and plans to participate in international forums and symposiums. The RFID development and implementation team will see an increase in the headcount by double, i.e from current strength of 40 to over 80 software professionals.

Besides, Spanco will ear mark over Rs 150 crores towards the working capital needs of current telecom business in strategic market segments like defence, carriers and SWAN.