Infotech Ltd(TIL) is focussing on building its overseas
direct marketing network to push growth in the system
integration business. The business, which was earlier
hit by problems faced by its key customer Unisys and the
lack of effective direct marketing set-up overseas, is
likely to see a 15% growth in the coming years.
managed to improve its performance in the last year with
a strong focus cost control and investment in strengthening
its overseas direct marketing network.
Unisys, the erstwhile joint venture partner and key client,
has turned around through stringent cost control measures.
is expected that the improvement to the growth prospects
of Unisys globally will provide good opportunities for
TIL due to its long-term relationship. Further, the system
integration business is on the growth path and the increased
business prospects from some of its other key clients
like Motorola and Diebold will ensure that the growth
is sustainable for the next two years.
company''s investments and efforts in strengthening its
overseas direct marketing network should start generating
positive results as we go forward," says analysts
with IDBI Capital Market. "Since TIL has the necessary
repository of knowledge from conceptualisation to designing
to implementation for the customer,we believe there is
a good growth opportunity for the company to seize it,"
the company see the manufacturing segment putting up a
better performance. In the manufacturing segment,TIL manufactures
range of microprocessor based products,printed circuit
board assemblies,contract manufacturing of complex electro
the most exhilarating story lies in its contract manufacturing
agreement signed in 2002 with Diebold of US - a global
leader in the integrated financial service systems. TIL
manufactures Diebold - ATM ''s (automated teller machines)
for the distribution of Diebold ATM ''s in India and to
other parts of south and south east Asia.
the retail banking is in its infancy in India,it is believed
that there is a growing opportunity to sell ATM ''s and
manage the same as we go forward. Another positive development
for TIL has been the addition of new customers and the
prospective strong clientele in future.
company is looking forward to some big deals through its
existing customer base,which includes the likes of Motorola,Unisys
has made a strong turnaround in the last fiscal (FY04)
with a revenue growth of 29%YoY,against a decline of 4.6%in
FY03 over FY02. Of the 3 major lines of business - system
integration (78%of FY04 revenues), manufacturing services
(19%)have shown decent to strong growth rates in FY04,however
the performance of the IT training business continues
to be lackluster for the third consecutive year.
Infotech has made a successful and profitable entry into
the business process outsourcing services by taking up
a 40% stake in SITEL India (50%subsidiary of SITEL Corporation,USA)at
a cost of Rs107mn.The call centre business is expected
to scale up significantly, post the November,once the
backlash against outsourcing
eventually subsides. the business process outsourcing
services by taking up a 40%stake in SITEL India (50%USA)at
a cost of Rs107mn.