The Indian Space Research Organisation (Isro) is betting on its transponder and satellite launch business to help the agency continue to grow rapidly in the future. While Isro plans to more than double its transponder capacity to 500 by 2012, the agency has six more contracts to launch satellites for foreign clients.

According to K R Sridhara Murthi, executive director, Antrix Corporation (the commercial arm of Isro), the organisation has made slow but steady progress in the booming, capital-intensive satellite launch market.

The segment contributed over $20 million or 10 per cent of Isro’s total pre-audited revenues of Rs 1,000 crore ($208 million) for financial year 2009 (FY09).

“We have so far put 16 foreign satellites from countries such as Belgium, Canada, Korea, Germany, Japan and Indonesia in space, mostly riding piggyback with our own satellites. We now have six contracts and will launch these satellites this year and early 2010,” he said.

The contracts include Xsat for University of Singapore, Alsat 2a from Algeria, a set of nano-satellites from Canada NLS6, Japan’s Prottieres, an European environmental mapping satellite and Sapphire for a Canadian firm.

“We are in talks with various agencies and firms for more contracts and expect to close a few soon,” Murthi said.

The explosion in the number of DTH (direct-to-home) players has meant more demand for satellite transponders. This bread and butter business contributed 60 per cent of Isro’s revenues in FY09, up 50 per cent from the previous year. “We see more potential in this segment. We will progressively increase the transponder capacity to 500 from the present 211 by 2012 through addition of satellites and new frequency bands,” he said.

Isro will also expand transponder offering to other countries in Africa, West Asia and South-East Asia. At present, it offers services only in India, Sri Lanka and Bangladesh.

“We are now exploring newer markets such as Latin America and Africa in both government and private sector. However, getting growth here will take time,” Murthi added.