GS Group, a Russian high tech and telecom holding, continues its global expansion with a clear focus on Asia. Almost two years after the launch of a broadcasting joint-venture in Cambodia, the Russian manufacturer of TV receivers and software for TV operators is putting together another partnership in Bangladesh.
The project, which GS is pursuing with Beximco, one of Bangladesh’s largest multi-sector conglomerates, is expected to provide the first legitimate option for satellite TV in that country, a move intended to curb the current ‘pilfering’ of TV signals from neighboring India.
In the new JV, called Beximco Communications Ltd. (BCL), the Russian company will hold a 45% stake and plans to invest in excess of 500 million rubles (approximately $14 million) by 2017. GS will handle technology integration and management, while Beximco brings licenses, investment (amount to be determined), and support dealing with the local government.
BCL is expected to launch commercial activity by the end of this year, with upwards of 300,000 local users connected in 2015. The partners hope to add as many as 400,000 new subscribers each following year.
For the St. Petersburg-based company, Asia is a clear priority. In July 2012, GS Group launched a similar project in Cambodia with a 51% stake in the Royal Group of Companies (RGC), a joint venture now operating under the One TV brand. Two months later, the Russian firm announced plans for Pakistan. More recently, strategies for Indonesia and broader Southeast Asia were discussed.
GS has business interests in other continents, too. Earlier this spring it added the largest Portuguese IT player to its portfolio, unlocking previously untouched markets from the UK to Mozambique, by way of their new asset’s proprietary chip technology.
By 2017, the Russian company plans to invest as much as $300 million into its overseas projects.
Source: GS Group
