Financial Daily from THE HINDU group of publications
Tuesday, Aug 10, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 10, 2004 |
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Info-Tech
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Mergers & Acquisitions eSys eyes acquisitions to ramp up business Moumita Bakshi
New Delhi , Aug. 9 WITHIN a year of acquiring Chennai-based Nebula Technologies, IT products distribution company eSys is eyeing another strategic takeover of a distribution firm in India, in a bid to expand its existing portfolio and foray into new customer segments. "We are looking for a strategic acquisition that would bring us new vendor relationships. We plan to acquire a firm that would allow us to expand the existing distribution lines into peripherals, systems or software, to give us a complete portfolio. Alternatively, we are looking for a company that will open new customer segments such as corporate sales," Mr Neeraj Chauhan, Director (International Operations) of eSys Distribution, told Business Line. He said the company was currently evaluating some proposals, but declined to divulge the name the firms it was talking to. "We expect to clinch an acquisition deal in six to nine months," Mr Chauhan said. The company last year acquired Nebula to ramp up its network of offices in India. Globally too, acquisitions have been in line with company's growth strategy. "We acquired businesses of SMG Companies in Italy and Poland, Be2Be in Belgium and Winsys in Austria. Apart from that, a local distribution set-up in Croatia from Novosel was also acquired. In Asia, eSys acquired business of Trimex International in Seoul in 2001 to set up Korean operations," Mr Chauhan said. He said all the companies that were acquired were local distribution companies with sales and logistics structure and the acquisitions helped eSys gain immediate access to specific target markets and local sales expertise. eSys Technologies India was established in 2000 as a subsidiary of eSys Singapore, and is into IT distribution and PC business. The company, which currently offers PCs targeted at the low and mid segments in India, plans to foray into the high-end segment. "We will soon have a full range of systems. The company will launch new PC models including eSys PC-2800 DHE priced at about Rs 26,000 and eSys PC-2800 DHP priced at about Rs 52,000," Mr Chauhan said adding that sSys felt the features of the high end models would be positioned five per cent lower than its counterparts in the market. eSys, which had clocked revenues of Rs 120 crore from direct sales of components and PCs in the country in 2003-04, expects to notch about Rs 600 crore this year. In addition, the company also has a dollar sale portfolio worth about Rs 400 crore annually.
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