Infotech Sales Proceeds For CTV Biz

Mumbai: | Updated: Nov 17 2003, 05:30am hrs
Close on the heels of announcing its plans to sell off its information systems division Onida Infotech, the Rs 750-crore Mirc Electronics Ltd is expected to have recently concluded a deal with an unnamed company which would buy Onida Infotech. Prior to the move, Onida Infotech was into SAP implementation.

Although the company is tight-lipped about the name of the buyer for Onida Infotech due to competitive strategies, Mirc Electronics Ltd chief executive officer GS Sundar told FE that the main objective behind the move is to utilise the money which will be raised from the sale of Onida Infotech to refocus on Mircs core CTV business, undertake financial restructuring and build the brand image of its high-end CTVs.

On the companys new plans, said Mr Sundar: A sales force of around 75 employees, which was actively involved with Onida Infotech, will have to leave. This is because Mirc Electronics streamlined its SAP implementation internally in 2001 and there was not much of SAP implementation activity happening at Onida Infotech. In order to sell off the company, a resolution was recently passed for the undertakings sale.

Mirc Electronics Ltd are the makers of Onida, KY Thunder, Science of Sound Series, Web Cruiser and Igo range of CTVs. Mr Sundar refused to divulge further details on how much money the company is planning to raise from the sale of Onida Infotech.

As for its existing line of CTV business, this years festive season has been reasonably good for the company. It achieved an overall sales growth of over 25 per cent compared to the previous growth of around 15 per cent. During the festive season this year, Mirc has been able to establish its newer product categories such as washing machines and digital versatile disks (DVDs).

In October itself, the company was able to garner revenues worth Rs 8 crore in the washing machines category and Rs 4 crore in the DVD segment.