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Sanjai Kumar, CMD, RailTel
| Photo Credit:
Ravi M G _12343@Chennai
State-run RailTel Corporation is exploring ideas for its next phase of growth by diversifying into hardware manufacturing and artificial intelligence (AI) applications, even as it cautiously scouts international markets amid improving geopolitical ties for India.
The pivot is aimed at balancing its traditional order book of Telecom and EPC business with emerging opportunities in digital infrastructure.
Driven by the momentum of Atmanirbhar Bharat, the environment is becoming increasingly conducive for Indian companies to develop indigenous technology solutions. RailTel is actively exploring opportunities to leverage this trend and further diversify its revenue streams.
According to Sanjai Kumar, CMD, RailTel, “all possibilities are being explored,” and some discussions are on “at very preliminary levels.” Options explored could include own-hardware making, partnerships, joint R&D set-up for indigenous solutions and AI-based apps, including bugware, and also “possible acquisitions.”
“But these are early-stage discussions. There is no time frame or immediate urgency as all options will be weighed before firming up’ Kumar told businessline during an interview.
Hardware ambitions
According to him, RailTel weighing a shift into hardware is a strategic shift depending on the growing need for “self-reliance.”
The company is in exploratory discussions to develop products such as routers, switches and signalling-related equipment, potentially under its own brand, if required.
“Ownership of technology is no longer about a single lab doing R&D. Today it’s about assembling the right chips, applications and integration. If a suitable opportunity comes, we are open to acquisitions, partnerships or in-house R&D,” Kumar said.
Artificial intelligence is another frontier RailTel is actively exploring.
The company is in discussions with partners to deploy AI-based solutions in renewable energy projects.
There is a rising security and spyware concerns over imported chipsets in power back-up systems and other Indian installations which use such offerings. RailTel is exploring possibility to foray into AI-based applications that can detect such bugs.
The AI can be deployed to detect vulnerabilities in power grids, particularly as many inverters currently use imported components which can become a major security concern as per some recent news reports.
RailTel’s current network doesn’t have elements from countries sharing land border with India.
Railway orders hold firm
RailTel’s total order book currently stands at around ₹7,268 crore, with railway projects accounting for nearly 30 per cent. This includes signalling, telecom and the government-backed Kavach train collision-avoidance system.
Two large Kavach orders, worth nearly ₹500 crore combined, came in earlier this year.
The company expects Kavach to become a sizeable revenue driver over the next four to five years as tenders worth nearly ₹30,000 crore gradually materialise.
“Out of that kitty, our share could be around ₹4,000 crore, but it will come in phases,” Kumar said.
Overseas push under watchful eye
On the international front, RailTel has so far executed only one small project , an ₹6.9-crore digitalisation order in Jamaica for electronic cricket scoreboards at Sabina Park Stadium. The project was funded by the Government of India for the national cricket board.
But it is actively bidding for projects in Africa (Ethiopia, Kenya), South Asia (Sri Lanka, Nepal, Maldives), and the Caribbean.
The RailTel CMD confirmed that exploratory visits have been made even to Guyana, which has seen rising digital infrastructure demand following recent oil discoveries.
“We are making concentrated efforts and working with the Ministry of External Affairs to participate in tenders in coming days; diversifying beyond legacy Railway projects. But we are cautious , these are new geographies and competition is intense” Kumar said.
Financial position strong
RailTel remains debt-free and well-capitalised, with working capital needs comfortably met from internal accruals.
While the company is open to exploring project-financing models, such as build–operate–transfer (BOT) in IT infrastructure , it has so far relied on innovative partnerships, including private investment for its upcoming data centre in Noida.
Plans are also in place to rollout four to five Edge data centres this year, with a long-term ambition of building over 100 such facilities in response to surging demand.
Published on August 28, 2025
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