Hinduja Global Solutions Ltd announced on Monday, March 9, that its broadband subsidiary, OneOTT Intertainment Ltd (OIL), has signed a memorandum of understanding with the State Transformation Commission to expand digital connectivity across Uttar Pradesh under project GANGA. According to the exchange filing, the initiative aims to connect more than two million households over the next 2-3 years by expanding broadband infrastructure across the state. This multi-year initiative promises substantial job creation and local entrepreneur development, though it unfolds as HGS grapples with declining profitability and stagnant revenue in its core business process management sector.
Under the programme, 8,000–10,000 local entrepreneurs will be developed as digital service providers (DSPs) at the Nyaya Panchayat level. As reported by CNBC TV18, these DSPs will deliver services including high-speed wired broadband for homes and enterprises. The initiative is expected to generate more than one lakh direct and indirect jobs across the state, with a focus on encouraging youth participation and women entrepreneurship. Beyond digital access, Project GANGA is projected to strengthen digital education, healthcare, and business services, aiming to ensure affordable digital access for underserved communities.
Manoj Kumar Singh, CEO at State Transformation Commission, stated that project GANGA is designed to strengthen digital infrastructure in Uttar Pradesh and support digital education, healthcare access and connectivity for businesses and public services. According to Singh, by empowering local entrepreneurs, the programme will strengthen service delivery and ensure affordable digital access for underserved communities. The project outlines the development of 8,000 to 10,000 local entrepreneurs as Digital Service Providers (DSPs) at the Nyaya Panchayat level, with specific focus on fostering youth and women's entrepreneurship.
Vynsley Fernandes, Whole-Time Director, HGS and MD & CEO, OIL, emphasized that by combining the Government's digital vision with OIL's execution capabilities, they aim to expand connectivity while creating sustainable livelihoods through entrepreneurship. OneOTT Intertainment currently operates broadband services in over 350 cities and towns, with its network reaching more than one million retail customers through its ONE Broadband brand. The Indian telecom sector is experiencing robust growth, driven by rapid 5G deployment and increasing broadband penetration, with a projected market size of $48.61 billion in 2025 and a 9.40% CAGR. This sector-wide expansion provides a conducive macro environment for such infrastructure projects.
Despite the promising digital expansion, HGS faces significant internal financial headwinds that raise questions about strategic capital allocation. The company has reported poor sales growth of -2.45% over the past five years and stagnant revenue in recent periods. Profitability remains a major concern, with a low return on equity of 1.60% and a low interest coverage ratio. Notably, HGS's trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio stands at a deeply negative -34.3x as of March 2026, indicating substantial losses. The company also carries contingent liabilities of ₹2,498 crore, raising concerns about the advisability of undertaking a large-scale infrastructure project like Project GANGA that may require significant capital investment.
