Videocon Telecom enters new businesses, expects Rs 1678 crore revenue this financial year

Videocon Telecom, the telecom arm of Videocon Group said that it is all set to deliver a consolidated topline revenue of Rs 1658 crore in the current financial year i.e. 2017-18 from its existing, newly setup and upcoming business lines.

Among the new business lines that the company is venturing into will include retailing of CCTV Cameras; smartphone accessories, Smart Homes & city solutions and Mobile VAS.

The company says that these new verticals will add a top line revenue of Rs 300 crore during the FY' and the remaining ₹1,358 crore from the existing business this year.

Self-sustaining business lines are the company's mantra while selecting the new business to venture into. All the business lines, be it existing, newly setup or upcoming, our first criteria is that the business should be cash positive from the word go, and we don't have to burn any money to make it run" said Arvind Bali, CEO, Videocon Telecom.

Among the company's existing business lines is its Broadband & FTTH business in Punjab, Haryana & Himachal Pradesh. The company is the market leader in Punjab and aims to maintain its revenue & customer market share (RMS & CMS). Videocon plans to expand its footprint in the circle by adding another 15 percent fiber this year in addition to its existing 6000 KM fiber. "Maintaining our leadership position in Punjab, we aspire to increase our RMS from by another 4 percentby 2020," said Bali.

Videocon also provides B2B enterprise communication solutions under the brand name 'Videocon Edge'.

"Looking at the potential of the market, we had set up the enterprise communication solutions vertical last year. The vertical has done fairly well last year, created a good funnel of enterprise and government sector customers. The enterprise communication solutions market is estimated at ₹1,600 crore, and considering we are a recent entrant in the market, we are targeting a fair market share this financial year. Our ambition is to be among the top three players in the market by 2020," Bali said.

Videocon is also venturing into the Smartphone accessories market and will offer the range of products including Smart-watches, Smart-bands, Bluetooth headphones & speakers, power banks, earphones, chargers, cables etc. "Smartphone accessories market is an approx Rs 8000 Cr market in India, and likely to grow by 20% YoY. We are quite excited about this new venture. Stay tuned for more updates," he added

"Our tower business although is small, but is profitable. Our focus this year will be to sweat the asset by increasing tenancy on our existing towers and diligently add new towers considering tenancy the potential," he further added.