Company plans to increase bandwidth
capacity to 75 mbps by April 2005
K BALARAM REDDY
Hyderabad, 21 April
City based Southern Online Bio
Technologies limited, formerly Southern Online Services
Limited, is planning to increase its bandwidth capacity
from the existing 44 mega bytes per second (mbps) to 75
mbps by April 2005. The company is the largest B-category
internet service provider (ISP) in the country.Of the
44 mbps capacity, the company sources 2 mbps from Dishnet
DSL,4 mbps from VSNL and 38 mbps from Bharti BT. "The
company sees huge untapped potential for selling additional
bandwidth in Hyderabad city itself. At present, negotiations
are on with bandwidth providers," N Satish Kumar,
managing director of Southern Online Bio Technologies,
told Business Standard. The company offers dial-up connections,
leased lines, wireless hosting and cable services in three
cities in the state -- Hyderabad, Karimnagar and Kakinada.
Satish Kumar said that the significant
fall in bandwidth prices from Rs. 42 lakh per mbps in
1999 to Rs 12 lakh currently was helping ISPs attract
new customers. He said the company was mainly focusing
on the corporate segment which comprised 80 per cent of
the total customer base.
Southern Online Services limited
recently announced plans to enter the biotechnology segment
by acquiring a company Southern Biofe Bio Fuels Private
Limited. It held an extraordinary general meeting of shareholders
on March 25, which approved of the change of name from
Southern Online Services limited to Southern Bio Technologies
The EGM had approved of the proposal
to raise authorized capital from Rs 6 crore to Rs 12 crore.
The company has sought approval from Sebi for rights issue
to allot 62,96,603 equity shares of Rs 10 each in the
ratio of 1:1 to the shareholders. Of these shares, 3,43,097
equity shares will be issued to the shareholders of Southern
Biofe Bio fuels in exchange for purchase of shares of
Southern Biofe Bio fuels.
Southern Bio plans to set up a
biodiesel plant Samsthan Narayanpur in Nalgonda district.
The plant will procure oil-bearing seeds such as Pongamia
Pinnata, Jatropha Curcas etc by entering into buyback
arrangements with farmers and tribals.
The bio-diesel project is estimated
to cost Rs 14.84 crore. About Rs 6 crore is being mopped
up through internal accruals and the remaining Rs 9 crore
is yet to be mobilised either through debt or equity,
Sathish Kumar said.
bio-diesel plant project is being appraised by German
Technical Cooperation (GTZ) , a financial institution.
The technology producing biodiesel is to be sourced from
LURGI of Germany, a leader in biotechnology, Sathish Kumar
said. The company is currently holding talks with International
Finance Corporation (IFC) and a few venture capital funds
in Germany, he added.