Facing stiff competition from foreign telecom equipment makers, Shyam Telecom has shut down its Gurgaon-based wireless signal booster manufacturing facility and outsourced the operations of this division.
"The manufacturing operations of repeater division were consistently dropping with diminishing profitability due to stiff competition.
The company has vacated the said premises and resolve to outsource the manufacturing operations," the company said in a BSE filing today. Shyam Telecom specialises in radio network or signal- based equipment.
It said that in the last few quarters, the size and quantum of the manufacturing operations even did not justify the manpower and space which the company was occupying.
In quarter ended December 2014, the company posted net loss of Rs 2.29 crore and revenues earned were Rs 86.15 crore. Shares of Shyam Telecom were trading at Rs 33.90 apiece, down by 0.44 per cent in afternoon session on BSE. PTI