Aksh Optifibre bags the order for Package B of the National Optic Fibre Backbone Project worth 33 Million USD Plus
Aksh Optifibre Limited [BSE: 532351 | NSE: AKSHOPTFBREQ], the New Delhi based leading manufacturer of Optical Fibre, Optical Fibre Cables & FRP Rods has bagged the contract for Package B of the National Optic Fibre Network (NOFN) backbone project for supplying Optical Fibre Cables. The project is aimed at connecting over 250,000 gram panchayats across the country and lead the charge towards empowering the heart of the nation for better e-governance, e-health services and better educational services at the grass root level in India. The project is scheduled to be completed by September 2015 and aims to provide high-speed broadband internet to all the 250,000 Gram Panchayats with speeds of upto 100 mbps to create a model of development and sow the seeds for an e-revolution in the rural parts of the country.
The NOFN Project is being rolled out by Bharat Broadband Network Limited (BBNL), the special purpose vehicle setup under the Department Of Telecom. BBNL has divided the project into 6 packages- East, West, North, South, Central and Northeast and separate bids have been accepted for all the 6 zones. The total value of this project has been set at USD 3.3 Billion.
Mr. Chetan Choudhari, Managing Director Aksh Optifibre Ltd., after being awarded the contract said 'Aksh has always wanted to be a part of this propitious project and NOFN is in-line with our company's ever growing commitment of creating a better & connected world. This project should hopefully usher in a new wave of opportunities for the people living in rural parts of India giving them better access to Governmental Services, Healthcare and above all Education to youngsters.
According to a recent study published by the World Bank, a 10% increase in broadband speeds leads to 1.38% increase in GDP. The NOFN Project which is a brainchild of the UPA-2 Government hopes to connect over 250,000 Gram Panchayats spread across 6600 Blocks and 641 Districts in India for better and faster implementation of various e-governance projects initiated by the Department of Information Technology besides the services for rural areas by the private sector.
Aksh Optifibre currently has 2 state of the art manufacturing units; One in Bhiwadi, Rajasthan which primarily caters to the manufacturing of World Class Optical Fibre & Optical Fibre Cables and another unit in Reengus, District Sikar, Rajasthan which specializes in the manufacturing of FRP Rods and Optical Fibre Cables. At present 70% of the company's revenue comes from exports and the company has emerged as a leader in the supply of Optical Fibre, Optical Fibre Cables & FRP Rods exporting to more than 56 countries across 6 continents. Owing to this success in the international markets, the companies turnover rose from USD 16 Million in 2010-11 to USD 38 Million in 2012-13 giving lots to cheer for the investors.
With this current order worth more than USD 33 Million coming into the company's bag, it will surely have a huge impact on the company's bottom line and also substantially increase their footprint in the Indian Domestic Market. According to Mr. Satyendra Gupta, Chief Financial Officer, Aksh Optifibre Limited, 'As of now we are exporting 70% of our total produce. This is significant considering the fact that other OFC manufacturers are struggling in the international markets'. He also said that all their manufacturing facilities have been retro-fitted to assist with the production of Optical Fibre Cable (OFC) for the NOFN Project. This will give them an additional boost of 25% on their overall production capacity across their 2 plants.