Shares of ITI Limited jumped 3 percent in trade on June 20 after the company signed an R&D contract with TCIL and C-DOT. At 12:38pm, the ITI stock was trading 2.97 percent higher at Rs 112 on the NSE.
According to a filing with the BSE, ITI Limited has signed a tripartite memorandum of understanding (MoU) with TCIL and CDOT to synergise research and development initiatives.
“ITI Limited has signed a tripartite MoU with the Centre for Development of Telematics (C-DOT) and Telecommunications Consultants India Limited (TCIL) recently as part of larger efforts by the government to synergise R&D efforts in the field of telecommunications aimed at establishing a framework for cooperation between C-DOT, TCIL, and ITI in creation and delivery of innovative telecommunication products and related services for smart cities,” said the filing.
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The co-operation between TCIL, ITI and C-DOT is aimed at joint execution of projects that are of mutual interest to all the three parties. Each project shall be governed by a separate project agreement, in which TCIL will be the lead partner, C-DOT will be the technology partner and ITI will be the manufacturing partner, according to the statement.
About the Company
ITI Limited is a public sector undertaking in the telecommunications technology segment established as a departmental factory in 1948. The company has manufacturing facilities in Bengaluru, Naini, Rae Bareli, Mankapur and Palakkad along with an R&D centre in Bengaluru and 25 marketing, services and projects (MSP) centres at Bengaluru, Bhubaneshwar, Chennai, Hyderabad, Kolkata, Lucknow, Mumbai, New Delhi and 17 other places across the country.
Management Commentary
“ITI is the first telecom manufacturing PSU established to achieve self-reliance in Indian telecom sector. We have a long-standing productive and enriching experience with both C-DOT and TCIL and I look forward to working with both of them so that the synergies arising out will prove beneficial to the development of the nation," Rajesh Rai, CMD of ITI Limited, said.
"ITI is excited to join other DOT organisations to manufacture indigenous telecom products that will achieve Aatma Nirbharata in the Indian telecom sector. We have the best-in-class manufacturing capabilities and I am convinced that this MoU will draw upon our collective capabilities to further build the indigenous manufacturing capabilities in India,” he said.
Stock Performance
The ITI Limited stock has given a return of 5.12 percent since the start of this year, outperforming the benchmark Nifty50 index which has given a return 2.24 percent during the same period.
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