Committee on business reorganisation to give recommendations on road map by mid November: Sterlite Tech CE
Digital networks integrator
‘ board-approved committee, which is looking into road map for reorganisation of the businesses in a tax and regulatory efficient manner, is expected to give its recommendations by mid-November, a top official said.
STL Group CEO Anand Agarwal said that much of the reorganisation exercise is likely be put into action this financial year.
“By November, the recommendations of the committee will be in, some parts of actioning will also happen. The reorganisation is expected to take place in a phased manner and I believe in the current financial year, most of the significant shifts will happen,” Agarwal told PTI.
STL has done half a dozen acquisitions over last few years in different geographies, including UK based network integration company Clearcomm and Italy-based optical interconnect products company Optotec.
The proposed reorganisation is aimed at simplifying the overall corporate structure, offering a clear growth path for each of its four business units — optical, services, software and wireless.
In July this year, STL board had given in-principle approval for considering reorganisation of its businesses, in a tax and regulatory efficient manner.
The board had also constituted and authorised a committee to recommend the final road map for reorganisation of its businesses, including making applications with appropriate government, regulatory and statutory authorities and taking all necessary steps in that regard.
With its portfolio spanning optical fibre and cables, network design and deployment as well as network software, Pune-based STL positions itself as an integrated solutions provider for global data networks, with optical preform, fibre and cable manufacturing facilities in India, Italy, China and Brazil.
Sterlite Technologies (STL) recently announced plans to expand its optical fibre manufacturing capability, including new facilities in the US and UK with total investment of about Rs 200 crore.
The optical fibre cable capacity will be boosted to 42 million fibre kilometres, from 33 million fibre kilometres.
These capacity enhancements will enable the extensive fibre build-outs planned across US, Europe, and UK to boost rural broadband and 5G programs.