Infotech Bags $48 M Contract From Canadas Bombardier

Hyderabad: | Updated: Sep 18 2003, 05:30am hrs
Infotech Enterprises Ltd, an engineering design, geographical information systems (GIS) and IT solutions provider, has bagged a $48 million, four-year long-term contract from Canada-based Bombardier Transportation, a global leader in rail equipment manufacturing and servicing.

The global major is expected to extend the contract for an additional four years based on the successful completion of the initial contract, the company said here on Wednesday.

An agreement to this effect has been signed with Bombardier recently in the US. Accordingly, Infotech will set up an engineering service unit (ESU) in Hyderabad with an initial capacity of 800 seats, to be ramped after 12 months.

As per the terms and conditions of agreement, Infotech will provide Bombardier with a range of services in design engineering projects for the railway industry. The ESU will also execute projects in the area of software development services and embedded services, the company added.

The company has start the work at its existing facility in Madhapur, which has a 1.75 lakh sq ft area. Two floors have been earmarked for the project. The company will deploy nearly 800 professionals in the next 12-15 months and will ramp up further, a company spokesperson told FE. We are looking at persons specialising in locomotive manufacturing technologies and engineering skills, he added.

Commenting on the contract, Infotech chairman and managing director, BVR Mohan Reddy, said: Our engagement with Bombardier is a strong reflection of our strength in design engineering services, and our service leadership extends into railways along with aerospace, automotive and industrial products.

According to company president and executive director, Sudhir Sethi, When the unit completes the ramp up phase and reaches a stabilised level, we will target a business of over $12 million per year from this relationship.

Bombardiers relationship with India goes back 35 years with the manufacturing and supply of electric locomotives, traffic management systems and several other railway products to Indian Railways.