Nu Tek India to increase focus on overseas markets ahead

In an interview with CNBC-TV18, Vineet Sirpul, executive director and CEO of Nu Tek India, spoke about the latest happenings in his company and the road ahead.

Below is a verbatim transcript of the interview. Also watch the accompanying video. Q: Could you tell us a little more about this tower supply contract that you have signed? How much revenue will it yield?
A: This is part of the strategy towards foraying to the overseas markets wherein we have been focusing on the Latin American and the African market. In fact, we have been working in Latin America on couple of contracts through OEMs like Ericsson and Huawei, who happened to be our existing customers in India and we have been doing extremely well. That is how we run into this operator Tiego who wanted to deploy its own network there and wanted us to do some towers for them.
We signed up a contract and we did a trail order and the customer is very happy with the end result. Now we are looking out for at least 250 more sites with estimated value would be around USD 21 million. So that is what we are focusing at right now. Q: Can you just tell us how much of your revenues actually come from international operations currently?
A: International operation is just about 9-10% so far but we definitely see a quantum jump in the coming quarter because of the Latin-American market. We also recently went into the African markets behind Bharti Airtel. We were called upon by the existing OEMs like Nokia Siemens Networks (NSN) and Huawei again to work on a contract for Bharti. So that is how we look at increasing the revenue from the overseas segment. Q: How many projects are you currently negotiating for?
A: A good one is on the RF planning, drive testing and optimization in the Eastern African markets that is covering countries like Kenya Uganda, Tanzania, Zambia, Madagascar and Malawi. We are bidding this with Nokia Seimens Networks and we are very hopeful for winning at least four or five countries. We are starting up with a smaller size contracts and may be going into bigger size contracts. The trail order of about half-a-million dollar could potentially go up to USD 10 million, so we are very hopeful of that. Q: Do you want to give us a quick number of what we could expect in FY12 international operations for Nu Tek?
A: Presently, we see international operations last year (FY10) we were close to about Rs 10-15 crore. We will be looking at close to about another Rs 25-30 crore this year, that is FY11. Going forward, for FY12, I would put a number of at least