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Nortel India inks 
75 Crore deals with local firms
By siliconindia
|
Thursday, 26 March 2009, 19:03 IST
Bangalore: Despite Nortel Networks filed for bankruptcy in the U.S. its Indian subsidiary Nortel India has signed around 100 contracts worth 
75 crore with domestic companies, reported The Economic Times.
According to a company executive, though about 70 percent of the signings have been renewals of existing contracts, Nortel India has managed to rope in some new customers including Reliance Communications and Union Bank of India. Moreover, Nortel's one of the old clients State Bank of India has renewed its contract with the company.
Nortel had filed an application on January 14 for creditor protection of its U.S., Canada and certain EMEA business ostensibly to deal with cost and debt burden and restructure its operations.
Meanwhile, Nortel's affiliates in Asia, including LG Nortel and in the Caribbean and Latin America, as well as its government solutions business are not included in these proceedings.
"I don't think there is any flutter in the market following Nortel's decision and they continue to maintain their market position," said Mohammad Saif, Deputy Director-consulting, ICT Practice, Frost & Sullivan, South Asia & Middle East.
While subsidiaries of most of the companies who have filed for bankruptcy tend to struggle in acquiring new business, Nortel seems to have not impacted by this. "We had some doubts and apprehension when the filing was made but Nortel has been very proactive with us, we are extremely satisfied," opined Pritesh Thakkar, Veep, IT, Axis Bank.
75 crore with domestic companies, reported The Economic Times.
According to a company executive, though about 70 percent of the signings have been renewals of existing contracts, Nortel India has managed to rope in some new customers including Reliance Communications and Union Bank of India. Moreover, Nortel's one of the old clients State Bank of India has renewed its contract with the company.
Nortel had filed an application on January 14 for creditor protection of its U.S., Canada and certain EMEA business ostensibly to deal with cost and debt burden and restructure its operations.
Meanwhile, Nortel's affiliates in Asia, including LG Nortel and in the Caribbean and Latin America, as well as its government solutions business are not included in these proceedings.
"I don't think there is any flutter in the market following Nortel's decision and they continue to maintain their market position," said Mohammad Saif, Deputy Director-consulting, ICT Practice, Frost & Sullivan, South Asia & Middle East.
While subsidiaries of most of the companies who have filed for bankruptcy tend to struggle in acquiring new business, Nortel seems to have not impacted by this. "We had some doubts and apprehension when the filing was made but Nortel has been very proactive with us, we are extremely satisfied," opined Pritesh Thakkar, Veep, IT, Axis Bank.