Tanvi Shukla

Mumbai: Fibre optic cable manufacturer Aksh Optifibre is in the process of separating its two manufacturing and services businesses into separate companies.

Kailash Chaudhary, managing director, Aksh Optifibre Ltd, said, “The board has told us to work on two separate companies with different business models for services and manufacturing. The two businesses are largely independent with no synergies between them… so it is better to separate them.”

The details, such as whether both companies will be public listed companies or whether one will be a subsidiary of the other, are yet to be decided.

The entire process will not take more than 6-8 months, said Chaudhary.

Aksh manufactures a range of optic fibres, optical fibre cables and fibre-reinforced plastic rods that are used in the telecommunications sector.

It will also make set-top boxes from a facility that is being set up in Rajasthan. The company also offers IPTV (internet protocol television) and VOIP (voice over internet protocol) services.

Aksh expects its high-margin services business to grow multifold in the next three years, to the extent that its turnover would exceed that of manufacturing. Currently the business accounts for less than 5% of the company’s total turnover.

Chaudhary said Aksh plans to take the services businesses to 15-20 new cities in the coming years. Right now the services are offered only in Delhi and Mumbai.

Meanwhile, for the quarter to March 2008, Gurgaon-based Aksh reported a net loss of Rs 2.68 crore on net sales of Rs 48.02 crore.

The stock rose by Rs 1.85 to close at Rs 48.6 on the Bombay Stock Exchange.

Source : DNA