Alcatel's debt programme gets A1 plus

THE INVESTMENT Information and Credit Rating Agency (ICRA) has assigned A1 plus rating to the Rs. 30 crore short term debt programme of Alcatel Network Systems India (ANSI), indicating highest safety. The highest safety rating takes into account ANSI's ownership by Alcatel of France, strong financial and technological support extended by Alcatel in the past and expected increase in sourcing by Alcatel from ANSI in future.

ANSI is engaged in the business of telecommunication products and services. ANSI's operations as of now are concentrated towards supply of basic switches to the Department of Telecommunication Services (DTS) and Mahanagar Telephone Nigam (MTNL). Profitability from this line of business has been low in the past due to competitive pressures, which are also expected to remain intense in the short to medium term. ANSI also ventured into supply of cellular equipment to Koshika Telecom, a cellular service provider in Western and Eastern U.P., Bihar and Orissa in 1996 and suffered heavily due to poor financial position of Koshika.

ANSI was incorporated as Alcatel Modi Network Systems, a joint venture of Alcatel CIT, France, and Dr. B. K. Modi group in March 1992 to provide telecom products and services. Alcatel CIT had a 51 per cent stake in the company with Dr. B. K. Modi group having the balance 49 per cent. Subsequently, Alcatel CIT acquired shareholding from the Modi group in 1999 and its shareholding increased to 98.6 per cent. Pursuant to the change in shareholding, the name of the company was changed to ANSI.

Alcatel CIT (ACIT) is a subsidiary of Alcatel. Alcatel is a prominent player in communication technology with presence in 130 countries where it provides state-of-the-art telecom solutions and services.

Corporate Bureau

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Section  : Business
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