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Deal Alert: Aditya Birla PE Invests Rs.95-Cr in telecom tech firm Alphion India

From the Press Release:

Aditya Birla Capital Advisors (ABCAP), the private equity arm of the Aditya Birla Financial Services Group (ABFSG), today announced an investment of Rs. 95 Crores from Aditya Birla Private Equity – Fund I in Alphion India Private Limited (AIPL). AIPL is the principal subsidiary of Princeton, USA based Alphion Corporation (Alphion).

Alphion develops, manufactures and globally provides optical Fiber-To-The-Premises (FTTx) access systems, subsystems and integrated photonic devices. Their access systems offer optical networking solutions for the rapidly emerging FTTx market and the portfolio includes a full range of products for central office, outside plant, customer premise and network management. Alphion is a full member of the ITU FSAN group and a leader in developing key technologies for the next generation of passive optical networks. Alphion is the pioneer in developing all optical PON (passive optical network) network extension solutions to extend the reach of broadband services. Alphion GPON solutions enable the convergence of wireless and wire-line networks as it is suitable not only for multiple-play voice, high speed Internet, data and video services but also for backhaul of WiMax, 2G/3G/4G cellular and future wireless networks.

Commenting on the occasion, Bharat Banka, Chief Executive Officer, Aditya Birla Capital Advisors Pvt. Ltd. said “Alphion is a unique player in the telecom sector offering proprietary R&D based, very high speed optical networking systems and solutions which empower carriers and local service providers to deliver high quality services with substantially lower operating costs. Apart from India, where we expect encouraging growth prospects with investments in broadband and data services infrastructure, Alphion is also positioned to capture customers in other emerging markets. We are excited to partner with Alphion and play a value-added role”.

Mr. Banka further added “As per published research and internal estimates, the global market for PON equipment currently is about US$ 4 billion p.a. and is growing at a CAGR of 20%. The current Indian market for PON equipment is estimated at about US$ 300 million p.a. and is expected to grow rapidly as service providers are in the process of rolling out FTTx services across India. Alphion currently has significant market share of this segment in India and emerging markets and is poised to further expand its position.”

“We are pleased to have ABCAP join us as a major partner,” commented Dr. Bharat P. Dave, Chairman and Managing Director of AIPL and Chairman, President and Chief Executive Officer of Alphion Corporation, “Their strong endorsement of Alphion and our vision will allow us to continue to be a leading provider of FTTx network solutions in India as well as other emerging global markets.”

About Alphion
The Alphion Group of Companies consists of US-based Alphion Corporation and Alphion India Private Limited, its principal subsidiary in India. Alphion develops, manufactures and markets communications systems, subsystems, integrated and discrete photonic components based on its proprietary QLight® technology platform. Alphion products are sold worldwide to service providers and OEMs in the Fiber-to the-Premises (FTTP), telecommunications, CATV, fiber optic sensing, test & measurement, medical imaging, and defense system markets. Alphion offers a growing line of broadband access products, which support complete end-to-end GPON network solutions. The AOLT-4000 Optical Line Terminal, AONT-100/200/300 Optical Network Terminal family, and Passive Optical Splitter family are in full compliance with the International Telecommunications Union’s standard for GPON equipment (ITU-T G.984). This ensures that the Alphion product family meets the stringent carrier-class requirements and interoperates with a broad spectrum of other manufacturers’ GPON equipment. Alphion is a member of both FSAN (www.fsanweb.org) – a consortium of carriers and equipment suppliers developing tomorrow’s broadband network standards and the ITU (www.itu.int).

Alphion India Private Limited has operations in Mumbai, Chennai, Bangalore, New Delhi, and Gurgaon. For more information about Alphion and its products, visit www.alphion.com

About Aditya Birla Capital Advisors

Aditya Birla Capital Advisors Private Limited (ABCAP) offers asset management and advisory services in Private Equity, to domestic & global investors. The company has adopted a unique investment style of partnering with its portfolio companies by providing strategic and operational intervention and has its focus on growth investments in mid-market companies, with India as the investment destination.

ABCAP currently manages Rs.1100 Crores in two funds, Aditya Birla Private Equity – Fund I (Fund I) and Aditya Birla Private Equity – Sunrise Fund (Sunrise Fund). Fund I is growth capital focused and targets minority stakes while investing in mid-cap, high-growth, India-centric companies, and has a sector-agnostic approach. Fund I has invested in GEI Industrial Systems, Credit Analysis and Research (CARE) and Anupam Industries. Sunrise Fund is uniquely focused on providing growth capital to proven businesses/ concepts within sectors in early stage of exponential growth. Sunrise Fund has invested in SMS Paryavaran.

For more information, please visit www.adityabirla-pe.com

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