GX Group eyes 66% revenue growth to Rs 500 cr in 2 yrs, to double exports
Benefits from the telecom production-linked incentive (PLI) scheme are one of the key growth drivers, said GX Group chief. (Representative photo)
Telecom gear maker GX Group expects its revenue to grow by 66 per cent to Rs 500 crore by financial year 2026, on account of growth in domestic business as well as exports, a top company official has said.
The company makes Gigabit Passive Optical Network (GPON) gears that are required to run fibre-based broadband networks. GX Group also makes routers and switches as well as Internet of Things (IoT) devices in India.
GX Group CEO Paritosh Prajapati said that the company is looking to expand its manufacturing unit in India with an investment of Rs 100 crore in the current financial year.
According to him, benefits from the telecom production-linked incentive (PLI) scheme are one of the key growth drivers for the company.
“We have achieved a 40 per cent year-on-year (YoY) growth in consecutive years, supporting us to grow from a Rs 300 crore to a Rs 500 crore company within the next two financial years.
“We are planning to build India as our Global hub, therefore, we are transferring technology and knowledge and investing in our new research and development centre in Chennai,” Prajapati said.
GX Group was the first telecom gear maker to meet PLI targets and receive the incentives from the government.
“We anticipate a 120 per cent export increase to major telcos in Africa, Europe and South East Asian countries, primarily by shifting from software to hardware export,” Prajapati said.
He said that GX Group production capacity has increased nearly five times since the day of the inception of our manufacturing facility.
“This financial year we are looking around and finding a facility. It will cost around Rs 100 crores, for the land, machinery and building.
“We are growing our production capacity to support new markets, along with new product lines where the new facility is under evaluation. Here we are in talks with State governments like Gujarat, Tamil Nadu and UP for the best possible access to the export market, along with skilled manpower availability,” Prajapati said.
When asked about local value addition, he said that the company is increasing local value addition to enable it to reduce cost and timely delivery of products.
“We believe in growing together, and to that end, we are partnering with SMEs and sub-vendors for consumables and raw materials and by training them with our European Union manufacturing team, we aim to build an ecosystem focused on components for broadband equipment to become Atmanirbhar,” Prajapati said.
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First Published: Jun 09 2024 | 2:52 PM IST