Pioneer Onlines new facility by May end

The company was allotted an acre of land adjacent to the Vanenburg IT park in Madhapur by the state government. The new facility will have a built-up area of 1.2 lakh sqft and will house the company's all three business units, eLabs, Nvision and the ISP division.

The company has raised Rs 7 crore of the proposed expenditure through term loans from SBI, and the rest through equity contribution from the promoters.

"We are planning to increase our team strength to 300 from the existing 200 by the time we move to our own campus," P Sridhar Reddy, the managing director of Pioneer Online, said at a press conference today.

The company has so far invested Rs 13.3 crore, out of which Rs 8.3 crore was received from IDBI as venture funding and the rest was funded by the promoters.

Pioneer has signed an MoU with state government's eSeva on Tuesday under which the latter will sell the company's Voice-over Internet Protocol (VoIP) calling cards and dial-up cards.

"Our Pioneer Fone cards provide best quality in voice, connectivity and customer card at cheaper rates," Reddy claimed.

An international call to the landlines of US, Canada, UK, Singapore, Germany and Australia will cost less than Rs 2 per minute and the cards are available within a price range of Rs 75 to 625.

The cards will be made available throughout the state within six to eight weeks starting with the twin cities from February 6.

"Our objective is to make the company reach Rs 100 crore turnover in the next three years," Sridhar Reddy said.

Pioneer Online posted Rs 1.7 crore profit on a turnover of Rs 17 crore and expects to clock Rs 2.5 crore profit on a turnover of Rs 21 crore in the current financial year.