Badri Gomatam, Group CTO, STL

Sterlite Technologies Limited (STL) is a leading global optical and digital solutions company providing advanced offerings to build 5G, rural, FTTx, enterprise and data centre networks. STL delivers high-performance optical networks and digital transformation services. Badri Gomatam, Group CTO, STL, discusses the current and upcoming priority areas for the company as well as emerging growth areas…

What are the current focus areas of STL?

We have three main businesses within STL:

Optical network business: This business focuses on fibre optic cables and associated accessories. This segment has been instrumental in expanding our customer base across the US and Europe, with notable projects in sectors like railways and fixed wireless access in India.

Global services: STL is one of the largest fibre deployment companies in India, having laid about 20,000 km of cables. Our services business is divided into two segments: system integration and managed services. Through system integration, we handle large-scale government projects. Managed services focus on IT infrastructure, including networking systems, storage and databases.

STL digital: This arm focuses on application development, ERP solutions and digital transformation services. STL Digital achieved an EBITDA breakeven in the third quarter (Q3) of FY2024-25.  We recently executed the VRISE programme for Vedanta at record speed.

What were STL’s key highlights in 2024?

STL takes pride in connecting the world through our business-to-business model.

In India, STL plays a vital role in government initiatives such as BharatNet, which aims to deploy fibre connectivity to every gram panchayat. We are actively working on Phases I and II of BharatNet across multiple states. In a significant move, STL announced the winning of the Jammu & Kashmir leg of the BharatNet III project in consortium with Dilip Buildcon Limited. This Rs 26 billion project strongly aligns with STL’s aim to transform lives by connecting the world and contributing to nation-building efforts.

What sets STL apart from its competition?

By integrating cutting-edge technologies, STL has demonstrated a 26 per cent faster fibre deployment compared to conventional methods, with nearly 4x fewer fibre cuts. STL’s proven expertise in complex projects is evident in the successful execution of the Network for Spectrum project, where we built the world’s largest intrusion-proof network spanning over 10,000 km for the Indian Armed Forces. With the new BharatNet project in Jammu & Kashmir, STL is focused on expanding broadband connectivity to villages. STL has also been a strong partner in earlier BharatNet phases, executing projects such as Mahanet in Maharashtra and T-Fibre in Telangana.

What inspired the company to delve into the data centre industry?

The shift from enterprise-managed servers to colocated data centres has been a significant industry trend. AI applications, which require substantial computational power and real-time processing, are a key driver of this trend.

Our focus is on providing tailored connectivity solutions that optimise data centre infrastructure. We have been developing products specifically designed for GPU-dense data centres and introducing innovations like the 7-core multicore fibre for quantum computing and silicon photonics. Our solutions are positioned to support the rising demands of these high-performance environments.

Does STL have any initiatives in the pipeline for data centres?

STL’s data centre solutions are designed to optimise both copper and fibre optic cabling, ensuring that the footprint of cabling in data centre racks is efficiently utilised. With the rise of high bandwidth requirements, especially in quantum computing, fibre optic cables have become essential in modern data centres. Our focus on innovation has led to the development of AI-powered tools for fibre roll-out and improved data centre cabling solutions. Additionally, STL’s patent count currently stands at 740, with 10 new patents filed in Q3 FY2025.

What are your strategic plans for the next year?

Our strategy remains multi-faceted. We are making significant strides in growing our data centre and enterprise product portfolio, which contributed 22 per cent of our quarterly Optical Networking Business revenues. This market segment is expected to drive strong growth in the medium term. Another focus is on expanding our footprint in key markets such as the US and Europe, while increasing the attach rate of our optical connectivity products. STL continues its efforts toward sustainability by installing 4,523 kW solar panels in our manufacturing plants to reduce our carbon footprint, as well as initiatives like the Swashthya Suraksha healthcare programme. Further, we aim to complete the demerger of our business segments by Q1 FY2026 and maintain a sharp focus on profitability, customer satisfaction and value creation.