Sterlite Optical doubles Optical Fiber annual manufacturing capacity

Sterlite Optical Technologies Ltd on November 12, 2007 has announced that it has decided to double its Optical Fiber annual manufacturing capacity to 12 Million-km from its current capacity of 6 Million-Km. This brownfield expansion at the Company's existing facilities at Aurangabad, India is estimated to incur a CapEx of INR 140 Crores (US$ 35 Million) and commercial production is expected to commence by June 2009.

This state-of-the-art facility would be capable of manufacturing the Company's existing range of Optical Fiber Products as well as have the intrinsic capability to manufacture products as per evolving international telecom standards that are being introduced to cater to high bandwidth applications required by global markets.

The Company is in advanced stages of discussion with leading global manufacturing equipment and raw material suppliers to streamline its efforts towards the expansion project milestones.

The Company is a market leader in India and currently supplies over 45% of the country's demand and over 4% of the global demand for Optical Fiber. In H1 2007-08, the Company's export sales for its Optical Fibers accounted for about 55% of total revenues from sale of its Optical Fibers. The expanded capacity would primarily cater to the growing demand from
the Indian market and also enable the Company to grow its global market share.

Says Dr Anand Agarwal, CEO & Director, "Over the past several business quarters we have achieved tremendous success in key high-demand markets in several geographies and have established a loyal customer base. With the strong outlook by the Indian & Global Optical Fiber Industry, we are poised to take our place within the Top 5 manufacturers in the world and we believe that this capacity expansion would give us the strategic advantage to
capitalize on the available opportunities."

Industry Opportunities

Recent months have proven a revival in global demand for Optical fibers. As per CRU, UK, the global demand for Optical Fiber was 97.3 Million-km in Year 2006. This demand is close to that last seen in Year 2000, during the Telecom Boom. The industry anticipates in 2007 the global demand would be an all time high.

KMI Research, USA estimates a 9% CAGR in worldwide demand for Fiber Optic Cables from 2006 through 2012. Fiberto-the-Premise (FTTx) deployments would be a very significant contributor to this demand growth and sustenance.

The Ministry of Communication has a target of connecting 20 million broadband subscribers by 2010 and has resolved to make broadband in India further affordable to enable subscribers enter the Information Superhighway. To make this happen, several leading incumbents have already announced network expansions and the demand from the Indian Optical Fiber Industry is estimated to experience a Y-o-Y growth of about 30% from 2007 through 2010.

Sterlite Optical Technologies gets order from BSNL

Sterlite Optical Technologies Ltd has announced that the Company has received a contract from BSNL valued at Rs 1.43 Billion for supply of Copper Telecom Cables. These cables would be used to enhance BSNL's Pan-India network to provide basic telephony and broadband services.

In this regard the Company has issued the following Press Release:

"Sterlite Optical Technologies Ltd on November 06, 2007 has announced that it has received a contract from BSNL for manufacture and supply of 20 to 2000 pair Copper Telecom Cables. These cables would be used to enhance BSNL's Pan-India network to provide basic telephony and broadband services. The contract is valued at INR 1.43 Billion (~US$ 36 Million) and supplies would be completed within FY 2007-08. With the award of this contract, Sterlite has over 23% market share for Copper Telecom Cables in India in FY 2007-08.

The Ministry of Telecommunication, India has declared the Year 2007 as the 'Year of Broadband' and has resolved to make broadband in India further affordable and enable subscribers enter the Information Superhighway.

Broadband services have sparked off a fresh wave in demand for wireline connectivity with leading telecom incumbents in India opting to launch broadband services using the 'ADSL 2+' technology, which has given copper cables a fresh lease of life. The copper cables are used for the last mile wiring for landline phones while fiber optic cables are used up to the junction box.

Says Mr. K S Rao, CMO - Telecom, "The Ministry of Communication has a target of connecting 20 million broadband subscribers by 2010. We are grateful to BSNL for enabling us to provide infrastructure that is the lifeline for broadband and therein be a key contributor to India's Broadband Vision."

Sterlite Optical Technologies Q2FY07 Results

Sterlite Optical Technologies Ltd has announced the following Unaudited Results for the quarter ended September 30, 2007:

The Company has posted a net profit after tax of Rs 272.70 million for the quarter ended September 30, 2007 where as the same was at Rs 198.50 million for the quarter ended September 30, 2006. Total Income is Rs 4005.90 million for the quarter ended September 30, 2007 where as the same was at Rs 3801.30 million for the quarter ended September 30, 2006.

The Company has acquired 'Power Transmission Business' w.e.f. July 01, 2006. Hence figures for Half Year are not comparable to figures for the previous year. Technologies Ltd has announced the following Unaudited Results for the quarter ended September 30, 2007:

The Company has posted a net profit after tax of Rs 272.70 million for the quarter ended September 30, 2007 where as the same was at Rs 198.50 million for the quarter ended September 30, 2006. Total Income is Rs 4005.90 million for the quarter ended September 30, 2007 where as the same was at Rs 3801.30 million for the quarter ended September 30, 2006.

The Company has acquired 'Power Transmission Business' w.e.f. July 01, 2006. Hence figures for Half Year are not comparable to figures for the previous year.

Sterlite Optical Technologies

Sterlite Optical Technologies Ltd has informed that the Company acquired 58.70% holding in equity share capital of Sterlite Infrastructure Pvt Ltd (SIPL). With this investment SIPL has become subsidiary of the Company.

SIPL has been incorporated with the object to carry on business pertaining to infrastructure projects and telecommunications.

Sterlite Optical Technologies Ltd

Sterlite Optical Technologies Ltd has announced the launch of its range of Al-59 Alloy Power Transmission Conductors compliant with the Swedish Standard SS241814; suited for high power transfer. The Company has recently executed supplies valued at INR 280 Million (US$ 7 Million) of these specialized conductors to Sweden.

Reinforced' (ACSR), ACSR conductors are limited by a maximum current carrying capacity of 838 Amperes. The material of construction of Al-59 Alloy Conductors overcomes this limitation enabling Al-59 Alloy Conductors to transfer upto 1307 Amperes of current and evacuate upto 1405 MW of power (56% higher than ACSR Conductors). Additionally, Al-59 Alloy Conductors have 9% better 'Strength to Weight ratio' & 8% lower sag compared with ASCR conductors which enables effective optimization of lower designs and future-proofing of the grid.

Says Mr. Pravin Agarwal - Director of the Company "In view of the National Power Grid being created in India, we believe Al-59 Alloy Conductors would have a special significance while designing transmission line network, as the properties of these conductors enable superior power evacuation while optimizing the cost of the entire grid. We are glad to introduce a superior technology to the Indian Industry that has been widely proven in Europe."

The Company is significant contributor to the global power sector with a complete range of power transmission conductors at Extra High Voltage (400kV-800kV), High Voltage (66kV - 220kV) and power distribution conductors (11kv- 33kv). The Company has currently about 3% global market share for Power Transmission Conductors and these products have been sold in 38 countries across Africa, Middle East, Asia & Europe. The Company currently supplies about 27% of India's total demand for power transmission & distribution conductors.