September 03rd, 2005 - Mumbai
GTL to rejig portfolio, create a new arm - Times News Network

Mumbai-based networking and BPO services firm GTL has hired Deloitte Haskins & Sells and RSM & Co to prepare a restructuring plan, according to a notice sent by the company to the BSE.

The company intends to restructure the existing business and transfer the network services and infrastructure divisions to a 100%-owned new company called GTL Infrastructure (GIL). It plans to exit some of its voice-based call centre businesses. The restructuring plan will also involve bringing all the service offerings of GTL under one roof as a unified service. This will include the operations of subsidiaries. GTL will retain the services portion of the business, as a network services company focusing on telecom OEMs, operators (service providers), MNCs and large enterprises.

Deloitte Haskins & Sells and RSM have been asked to submit a report to the board in the next 30 days. GTL Infrastructure Ltd (GIL), with an investment of Rs 25 crore, has already been created. GTL Infrastructure will offer shared infrastructure assets to telecom operators and BPO companies. GIL has infrastructure assets like Network Operation Centre (NOC), and nodes at various cities across India.

GIL has data centres, international gateways, networking equipment, OSS software and other equipment. The utilisation of these assets can be significantly enhanced on a shared assets model. The company proposes to transfer these assets to GIL for optimum utilisation. The objective behind creating shared network services business is to help telecom operators reduce their capital expenditure requirement.

GTL is also looking at reducing its exposure to voice-based work at its call centre due to intense competition and lower billing rates. The company may sell the business. It expects revenues for the full year to be in the range of Rs 825- 890 crore, and net profit in the range of Rs 38-45 crore.