Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that the company successfully demonstrated 4G/5G network and applications on an end-to-end indigenous network, using its designed-and-made in India hardware and software products, in the presence of Hon’ble Prime Minister of India, Shri Narendra Modi, at the India Mobile Congress (IMC) being held at Pragati Maidan, New Delhi.
The end-to-end network showed a full range of innovative wireless and wireline products from Tejas Networks and its subsidiary Saankhya Labs. These included advanced 4G and 5G macro Radio Access Network (RAN) equipment and broadcast radios, multi-terabit optical aggregation and backbone equipment, all managed from a versatile, universal network management system. Also on display was the world’s first ultra-converged broadband product (TJ1400 UCB) that combines 4G/5G Radio RAN, fiber broadband access (GPON/XGS-PON OLT), and packet-optical transport technologies in a single, compact shelf. The demonstrations included multiple use cases over the 4G/5G network such as video calling, Direct to Mobile (D2M) broadcasting and e-learning.
Mr. Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Today’s successful live demonstration of indigenous end-to-end network and applications is a critical milestone in India’s journey towards achieving Atmanirbharta in telecom technologies. We are committed to continue building on this success by sustaining our R&D and manufacturing investments, with a vision to create a global-scale telecom OEM from India in the coming years”.
Dr. Kumar N. Sivarajan, Chief Technology Officer of Tejas Networks said, “We are delighted to have played a leadership role in setting up India’s most comprehensive end-to-end indigenous technology demonstrator, covering our latest 4G and 5G RAN equipment as well as our optical transport and access product. It reinforces our position as India’s leading deep-technology innovator in the telecom product space, with a complete portfolio of products to deliver ubiquitous high-speed connectivity in urban, semi-urban, rural and remote areas.”
The end-to-end network showed a full range of innovative wireless and wireline products from Tejas Networks and its subsidiary Saankhya Labs. These included advanced 4G and 5G macro Radio Access Network (RAN) equipment and broadcast radios, multi-terabit optical aggregation and backbone equipment, all managed from a versatile, universal network management system. Also on display was the world’s first ultra-converged broadband product (TJ1400 UCB) that combines 4G/5G Radio RAN, fiber broadband access (GPON/XGS-PON OLT), and packet-optical transport technologies in a single, compact shelf. The demonstrations included multiple use cases over the 4G/5G network such as video calling, Direct to Mobile (D2M) broadcasting and e-learning.
Mr. Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Today’s successful live demonstration of indigenous end-to-end network and applications is a critical milestone in India’s journey towards achieving Atmanirbharta in telecom technologies. We are committed to continue building on this success by sustaining our R&D and manufacturing investments, with a vision to create a global-scale telecom OEM from India in the coming years”.
Dr. Kumar N. Sivarajan, Chief Technology Officer of Tejas Networks said, “We are delighted to have played a leadership role in setting up India’s most comprehensive end-to-end indigenous technology demonstrator, covering our latest 4G and 5G RAN equipment as well as our optical transport and access product. It reinforces our position as India’s leading deep-technology innovator in the telecom product space, with a complete portfolio of products to deliver ubiquitous high-speed connectivity in urban, semi-urban, rural and remote areas.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] (“Company”) had acquired 64.40% of shares of Saankhya Labs Private Limited (‘Saankhya Labs’) in July 2022. In view to consolidate and merge the operations of Saankhya Labs and its subsidiary, Saankhya Strategic Electronics Private Limited (“Saankhya Strategic”) with the Company, the Board of Directors of Tejas Networks have approved a scheme of amalgamation through a National Company Law Tribunal (“NCLT”) approved process.
As consideration for the said amalgamation and based on the independent valuation report and fairness opinion, issued by the Registered Valuer and Independent Merchant Banker, respectively, the Company will issue 3,871,084 equity shares of Tejas Networks to Saankhya Labs shareholders holding 35.60% equity shares, using the swap ratio of 112 shares of Tejas Networks for 100 shares of Saankhya Labs. The Appointed Date for the amalgamation has been fixed as July 1, 2022.
The proposed amalgamation will expand Tejas’s wireless offerings by adding Saankhya Lab’s 5G Open RAN (ORAN), 5G cellular broadcast and satellite communication products, in addition to enhancing the Company’s expertise in fabless semiconductor chip design. This amalgamation is expected to enhance operational, organizational and financial efficiencies, help achieve economies-of-scale by pooling of resources, drive synergies in revenue, costs and operations, and will help build a stronger base for future growth of the Company’s business.
The proposed amalgamation is subject to necessary approvals by SEBI, shareholders of the Company, Saankhya Labs, Saankhya Strategic, NCLT and other statutory and regulatory bodies, as may be required. Till such approvals are received, Saankhya Labs and Saankhya Strategic will continue to operate as majority-owned subsidiaries of Tejas Networks Limited.
As consideration for the said amalgamation and based on the independent valuation report and fairness opinion, issued by the Registered Valuer and Independent Merchant Banker, respectively, the Company will issue 3,871,084 equity shares of Tejas Networks to Saankhya Labs shareholders holding 35.60% equity shares, using the swap ratio of 112 shares of Tejas Networks for 100 shares of Saankhya Labs. The Appointed Date for the amalgamation has been fixed as July 1, 2022.
The proposed amalgamation will expand Tejas’s wireless offerings by adding Saankhya Lab’s 5G Open RAN (ORAN), 5G cellular broadcast and satellite communication products, in addition to enhancing the Company’s expertise in fabless semiconductor chip design. This amalgamation is expected to enhance operational, organizational and financial efficiencies, help achieve economies-of-scale by pooling of resources, drive synergies in revenue, costs and operations, and will help build a stronger base for future growth of the Company’s business.
The proposed amalgamation is subject to necessary approvals by SEBI, shareholders of the Company, Saankhya Labs, Saankhya Strategic, NCLT and other statutory and regulatory bodies, as may be required. Till such approvals are received, Saankhya Labs and Saankhya Strategic will continue to operate as majority-owned subsidiaries of Tejas Networks Limited.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has been awarded a contract worth Rs 298 crores for the supply, installation, commissioning and support of its state-of-the-art optical networking equipment, for the augmentation of PGCIL’s (NSE: POWERGRID) pan-India telecom backbone and access networks. As part of this contract, Tejas will deploy a wide range of its versatile family of products including TJ1600 multi-terabit OTN cross-connects and 100G/200G DWDM systems with advanced Flex-grid ROADM functionality, TJ1400P series of MPLS-TP/Carrier Ethernet switches, along with TejNMS, its universal, multi-technology network management system to create a scalable and high-capacity network for PGCIL.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to be selected by PGCIL for the capacity expansion of their nationwide backbone and access network, which further reinforces our position as a leading trusted telecom equipment provider for the critical infrastructure segment. This win is a strong endorsement of the competitiveness of our end-to-end portfolio of world-class optical networking products for Access, Metro and Backbone networks.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to be selected by PGCIL for the capacity expansion of their nationwide backbone and access network, which further reinforces our position as a leading trusted telecom equipment provider for the critical infrastructure segment. This win is a strong endorsement of the competitiveness of our end-to-end portfolio of world-class optical networking products for Access, Metro and Backbone networks.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the first quarter ended June 30, 2022. Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks.
For Q1-FY23, consolidated net revenue was Rs. 125.8 crore, which was a YoY decrease of 12.8%, resulting in a loss before tax of Rs. 12.9 crore as compared to a profit of Rs. 8.3 crore, for corresponding previous period. Loss after tax was Rs. 6.6 crore as compared to profit of Rs. 7.6 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continued to experience supply chain challenges and we could not manufacture enough products to make complete, balanced shipments against our open orders. We are re-engineering our supply chain processes and IT tools, to better manage the unpredictability of component supplies. With these changes, along with our strong order book of Rs 1,158 crores and advance inventory actions, we expect to see better revenue performance in the coming quarters. We continue to increase our R&D and manufacturing investments for 4G and 5G wireless products and are seeing a good pipeline of business building up”.
Mr. Venkatesh Gadiyar, CFO said, “During Q1, we saw margin pressure due to industry-wide increase in component prices over last few quarters, which we could not pass on to some of our customers with whom we had agreed for fixed price deals. Our cash position continues to be healthy and as on June 30, 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,739 crore and we continue to be a debt-free Company”.
For Q1-FY23, consolidated net revenue was Rs. 125.8 crore, which was a YoY decrease of 12.8%, resulting in a loss before tax of Rs. 12.9 crore as compared to a profit of Rs. 8.3 crore, for corresponding previous period. Loss after tax was Rs. 6.6 crore as compared to profit of Rs. 7.6 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continued to experience supply chain challenges and we could not manufacture enough products to make complete, balanced shipments against our open orders. We are re-engineering our supply chain processes and IT tools, to better manage the unpredictability of component supplies. With these changes, along with our strong order book of Rs 1,158 crores and advance inventory actions, we expect to see better revenue performance in the coming quarters. We continue to increase our R&D and manufacturing investments for 4G and 5G wireless products and are seeing a good pipeline of business building up”.
Mr. Venkatesh Gadiyar, CFO said, “During Q1, we saw margin pressure due to industry-wide increase in component prices over last few quarters, which we could not pass on to some of our customers with whom we had agreed for fixed price deals. Our cash position continues to be healthy and as on June 30, 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,739 crore and we continue to be a debt-free Company”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced the appointment of Prof. Bhaskar Ramamurthi and Mr. P. R. Ramesh as Independent (Additional) Directors with effect from June 27, 2022. These appointments are based on the recommendation of the Nomination and Remuneration Committee of the Board and is subject to the approval of shareholders. The company also announced that Dr. Gururaj Deshpande, who has been a Board member of Tejas Networks since its inception in year 2000, has resigned from his present position as a Non-Executive Director with effect from June 28, 2022.
Prof. Bhaskar Ramamurthi was the Director of IIT Madras from 2011 to 2022. An alumnus of IIT Madras and the University of California, Santa Barbara, Prof. Bhaskar is a Fellow of Indian National Academy of Engineering (INAE) as well as IEEE, and has won several awards for his world-class research in electronics and communications engineering. Prof. Ramamurthi is an honorary Director of the Centre of Excellence in Wireless Technology (CEWiT), a public-private initiative at the IIT-M Research Park and has also served on the Board of Oil India Limited (OIL) and Bharat Electronics Limited (BEL).
Mr. P. R. Ramesh was the Chairman of Deloitte India and has over 40 years of experience in the profession, having served as a member of Deloitte Global Board and Deloitte Asia Pacific Board. Mr. Ramesh is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) and has also been associated with various Regulatory and Industry Bodies. He has extensive experience working with clients in manufacturing, banking and financial services, technology, media, telecommunications, energy and resources and consumer business sectors throughout his professional career.
Commenting on his association with the company, Dr. Gururaj Deshpande said, “I have been associated with Tejas Networks since the beginning, as an investor as well as a Board member. It has been an absolute pleasure to have been a part of the Board and working with the team at Tejas. I truly enjoyed the experience of seeing the company grow from a startup to India’s largest indigenous telecom products company. I strongly believe that with the Tata relationship, the company has all the ingredients needed to become a globally leading telecom OEM. I will always treasure my long association with Tejas and will remain a committed well-wisher of the company.”
Mr. N Ganapathy Subramaniam, Chairman of the Board of Tejas Networks said, “I would like to applaud Dr. Deshpande for his vision in helping create India’s largest telecom product company and thank him for his extraordinary contributions in helping the company achieve all the success over the years.” Welcoming the new Independent Directors Mr. Subramaniam said, “We are delighted to welcome Prof. Ramamurthi and Mr. Ramesh to our Board. They are highly respected professionals in their field and their deep knowledge and domain experience will be very valuable to our company during the next phase of our growth, as we aspire to become a top-tier, global end-to-end telecom products company.”
Mr. Sanjay Nayak, CEO and MD of Tejas Networks added, “We are excited that Prof Bhaskar Ramamurthi and Mr. P. R. Ramesh, two distinguished industry veterans, have agreed to join our Board. I look forward to working with them and am confident that the company will immensely benefit from their vast background and invaluable experience, as we scale up our organization to achieve global success. Dr. Deshpande has been a guiding force behind Tejas from the day it was founded and I would like to convey my sincere appreciation and gratitude to Dr. Deshpande. On behalf of the entire team at Tejas, I would like to thank him for his valuable guidance, mentorship and generous support over the last 22 years. His deep insights on strategic as well as operational matters helped us navigate various challenges and achieve significant success.”
Prof. Bhaskar Ramamurthi was the Director of IIT Madras from 2011 to 2022. An alumnus of IIT Madras and the University of California, Santa Barbara, Prof. Bhaskar is a Fellow of Indian National Academy of Engineering (INAE) as well as IEEE, and has won several awards for his world-class research in electronics and communications engineering. Prof. Ramamurthi is an honorary Director of the Centre of Excellence in Wireless Technology (CEWiT), a public-private initiative at the IIT-M Research Park and has also served on the Board of Oil India Limited (OIL) and Bharat Electronics Limited (BEL).
Mr. P. R. Ramesh was the Chairman of Deloitte India and has over 40 years of experience in the profession, having served as a member of Deloitte Global Board and Deloitte Asia Pacific Board. Mr. Ramesh is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) and has also been associated with various Regulatory and Industry Bodies. He has extensive experience working with clients in manufacturing, banking and financial services, technology, media, telecommunications, energy and resources and consumer business sectors throughout his professional career.
Commenting on his association with the company, Dr. Gururaj Deshpande said, “I have been associated with Tejas Networks since the beginning, as an investor as well as a Board member. It has been an absolute pleasure to have been a part of the Board and working with the team at Tejas. I truly enjoyed the experience of seeing the company grow from a startup to India’s largest indigenous telecom products company. I strongly believe that with the Tata relationship, the company has all the ingredients needed to become a globally leading telecom OEM. I will always treasure my long association with Tejas and will remain a committed well-wisher of the company.”
Mr. N Ganapathy Subramaniam, Chairman of the Board of Tejas Networks said, “I would like to applaud Dr. Deshpande for his vision in helping create India’s largest telecom product company and thank him for his extraordinary contributions in helping the company achieve all the success over the years.” Welcoming the new Independent Directors Mr. Subramaniam said, “We are delighted to welcome Prof. Ramamurthi and Mr. Ramesh to our Board. They are highly respected professionals in their field and their deep knowledge and domain experience will be very valuable to our company during the next phase of our growth, as we aspire to become a top-tier, global end-to-end telecom products company.”
Mr. Sanjay Nayak, CEO and MD of Tejas Networks added, “We are excited that Prof Bhaskar Ramamurthi and Mr. P. R. Ramesh, two distinguished industry veterans, have agreed to join our Board. I look forward to working with them and am confident that the company will immensely benefit from their vast background and invaluable experience, as we scale up our organization to achieve global success. Dr. Deshpande has been a guiding force behind Tejas from the day it was founded and I would like to convey my sincere appreciation and gratitude to Dr. Deshpande. On behalf of the entire team at Tejas, I would like to thank him for his valuable guidance, mentorship and generous support over the last 22 years. His deep insights on strategic as well as operational matters helped us navigate various challenges and achieve significant success.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that Mr. Balakrishnan V, Non-Executive Chairman of the Board of the Company has decided to step down from his position and that the Board has approved the appointment of Mr. N. Ganapathy Subramaniam as the Non-Executive Chairman of the Board with effect from May 18, 2022. Mr. N. Ganapathy Subramaniam is a Nominee Director of Panatone Finvest Ltd.
Mr. Balakrishnan V, after serving as the Non-Executive Chairman of the Board for more than 7 years, has also resigned as an Independent Director effective Apr 23, 2022. Commenting on his association with the Company, Mr. Balakrishnan said, “Tejas Networks is a great company with wonderful founders and I enjoyed every moment working with the team. Consequent to the change in control, Tejas has a bigger platform to build a truly global product company from India. I have expressed my desire to leave and the Board has kindly consented. I wish Tejas all the very best in its future endeavors.”
Mr. N. Ganapathy Subramaniam, the incoming Chairman said, “Bala has done an outstanding job of guiding Tejas Networks in its journey from a startup to India’s first listed deep-technology telecom product company, which is now poised to tap global opportunities. We sincerely thank Bala for his invaluable contributions to the Company’s success and wish him all the best in his future endeavors”.
The Tejas Board expressed its deep appreciation and admiration for the skillful manner in which Mr. Balakrishnan V steered and positioned the company during his tenure. Mr. Sanjay Nayak, CEO & MD said, “working with Bala has been an absolute pleasure and a great learning experience. His sharp sense of business judgement and understanding of corporate governance issues was truly admirable and he instilled a culture of excellence in all aspects of our Company. I am thankful to him for having guided me over the years, and would like to place on record my sincere appreciation for the strong contribution that Bala has made to the success of Tejas Networks.”
Welcoming the incoming Chairman, Mr. Nayak said, “I am delighted that Mr. Subramaniam is taking over as the Chairman of our Board at this exciting stage of our Company. He brings in a rich strategic as well as operational experience, strong domain knowledge and a stellar track record of scaling-up companies from India to global scale. I look forward to his valuable insights and guidance, as we set our sights to tap the global market place.”
Mr. Balakrishnan V, after serving as the Non-Executive Chairman of the Board for more than 7 years, has also resigned as an Independent Director effective Apr 23, 2022. Commenting on his association with the Company, Mr. Balakrishnan said, “Tejas Networks is a great company with wonderful founders and I enjoyed every moment working with the team. Consequent to the change in control, Tejas has a bigger platform to build a truly global product company from India. I have expressed my desire to leave and the Board has kindly consented. I wish Tejas all the very best in its future endeavors.”
Mr. N. Ganapathy Subramaniam, the incoming Chairman said, “Bala has done an outstanding job of guiding Tejas Networks in its journey from a startup to India’s first listed deep-technology telecom product company, which is now poised to tap global opportunities. We sincerely thank Bala for his invaluable contributions to the Company’s success and wish him all the best in his future endeavors”.
The Tejas Board expressed its deep appreciation and admiration for the skillful manner in which Mr. Balakrishnan V steered and positioned the company during his tenure. Mr. Sanjay Nayak, CEO & MD said, “working with Bala has been an absolute pleasure and a great learning experience. His sharp sense of business judgement and understanding of corporate governance issues was truly admirable and he instilled a culture of excellence in all aspects of our Company. I am thankful to him for having guided me over the years, and would like to place on record my sincere appreciation for the strong contribution that Bala has made to the success of Tejas Networks.”
Welcoming the incoming Chairman, Mr. Nayak said, “I am delighted that Mr. Subramaniam is taking over as the Chairman of our Board at this exciting stage of our Company. He brings in a rich strategic as well as operational experience, strong domain knowledge and a stellar track record of scaling-up companies from India to global scale. I look forward to his valuable insights and guidance, as we set our sights to tap the global market place.”
