If things work out well, Chennai-based Zylog Systems is all set to get into the big league. Some acquisitions, government contracts, and pan India Wi-Fi coverage of cities will take the company into the big league, reports CNBC-TV18’s Haresh Soneji.
Here is a verbatim transcript of Haresh Soneji’s comments on CNBC-TV18. Also watch the accompanying video.

If things work out well for this company; first the US based small acquisition for its product development. Second it’s doing a pilot project for Indian railways so we will have internet connectivity across India on railways and third thing is pan India Wi-Fi coverage of cities. They have already started a pilot project in Chennai and is moving on in the next 12-15 months to Bangalore, Hyderabad and other two metros post that. Funding close to about RS 200-220 crore; coming out of both debt and equity equally.

Sudarshan Venkataraman, Chairman and CEO, Zylog Systems said “We have earmarked Rs 210 crore for total project. So far we have invested 15 crore for the  projects, Rs 68 crore equity and Rs 100 crore something debt and rest of it is from from internal accruals. We expect payback in beginning of fourth year and 5th year end we are looking at Rs 600 crore revenues from these investments. Also we are not adding any value added services; this is core domestic broadband services selling.”

He further said, “As of now many of these initiatives are done without forgoing the cash reserves and then we go for debt whenever it is required.”