HFCL buys major stake in HTL

By Our Special Correspondent

NEW DELHI, OCT 16. The Government today transferred 74 per cent equity of HTL (formerly Hindustan Teleprinters Limited) to Himachal Futuristics Communications Limited (HFCL) for a consideration of Rs. 55 crores. A tripartite agreement to this effect was signed by HFCL, the Department of Telecom and the Department of Disinvestment. HTL is among the 13 public sector enterprises listed for disinvestment during 2001-02 and is the third privatisation deal after Modern Food and Balco.

Incorporated in 1960, HTL changed its profile after teleprinters went out of fashion. It took to manufacturing telecom equipment including high-generation digital switches, transmission, access and data products during the tenure of Ms. Lakshmi Menon as CMD who nursed the unit back to health. However, with the departure of Ms. Menon to ITI, the fate of the PSE appeared to be sealed despite its track record of four successive years of profits.

Encouraged by the Government's move to sell PSEs, a number of private telecom equipment manufacturing were eyeing HTL. HFCL's acquisition will help it enter areas that were hitherto denied to it. The company can also become a participant in tenders worth thousands of crores floated every year for digital exchanges as HTL has a partnership with a muti-national compnay.

HFCL announced the formation of a seven-member board with Mr. Mahendra Nahata as the Chairman. The other members include Mr. Y. S. Chaudhary, Mr. R. M. Kastiya (both long-time HFCL officials), Prof. Ashok Jhunjhunwala, the Bata Chairman, Mr. A. L. Mudliyar and two government representatives. Mr. Nahata said the company planned to increase its turnover to Rs. 1,000 crores in 2002-03 from Rs. 400 crores this year.

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Section  : Business
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