Infotech Enterprises Ltd (IEL), the Hyderabad-based company into geographical information system (GIS) and engineering services, is planning a foray into the electronics design segment.
"Electronics designing is something we are currently working on. In fact, we are already in this field in different verticals. All that we have to do now is to bring those capabilities into a single vertical and hone up skills further to meet the demands of the electronics industry," chairman and managing director B V R Mohan Reddy said.
The company is already working with a consumer goods company to provide designs for the latter's electronic gadgets. It is also providing VLSI solutions to few other clients. "I think in the next one year, we will be ready for electronics design services," Reddy said.
Interestingly, the company is eyeing a firm foothold in the Japanese market, which is considered one of the biggest electronics market in the world. IEL will, however, start with mechanical designs in Japan."(Japanese) Language and their possessiveness about the intellectual property (IP) make it difficult for any company to penetrate the market in Japan. However, we are close to making a breakthrough and we would sign our first contract there with a large customer in October," he said. Reddy added that once the company puts in place a team for the vertical, it will explore opportunities in the segment in Japan in the future.
Infotech Enterprises is expecting to cross the Rs 1,000-mark in revenues this year. The company had clocked revenues of Rs 889.75 crore in the financial year ended March 2009.
The company is also planning to further sharpen its focus on the segments it currently has a presence in. "We do not intend to make any changes to the business plan. There is no course correction. Instead, we plan to dig deep into GIS and engineering services segments, where we are strong. We would also like to focus on adjacencies in these segments to maximise the returns," Reddy said.
He added that the GIS market is valued at $10 billion globally and the design-engineering segment is about "hundreds of billions"
"As we dig deep into our strengths like GIS, we are finding several new areas. For instance, we are now working on telco-engineering for telecom companies. Before telcos set up their assets and equipment, they map the area. We help them in using GIS during the planning phase by analysing the topography and other details. In the engineering segment, after-market support is a major challenge, particularly in areas like aerospace and rail engineering. We are gearing services in these areas, too," he said.
Reddy said Infotech was now seeing the signals of a reversal in slowdown. "The number of customers putting out RFPs is on the rise. There is a significant change in the market in the last six weeks. Telecom, power sector and government are the major sectors seeking services like ours," he said.
Source: DNA
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