Allion of Taiwan to pick up stake in LanBit India
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MUMBAI 7 APRIL
THE $120m Taiwanese company Allion is planning to pick up an equity stake in LanBit (India), a computer hardware company making networking products like modems, CD servers and PC communication accessories.
Confirming the move, LanBit managing director Manoj Kumar told The Economic Times, ''LanBit has a technical association with the Taiwanese firm and markets its products under the brand name 'LanBit'. We are in talks for foreign equity participation and expect to finalise the deal by end-1999.”
The move to offer a stake to the Taiwanese firm is in line with the long-term strategies of the company, involving consolidation of various networking products, Mr Kumar said.
LanBit (India) has chalked out a Rs 15-crore expansion plan over the next 18 months.
''Over a longer period, we plan to buy out the brand 'LanBit' from the Taiwanese firm and will market products all over the globe from India,” said Mr Kumar. The brand acquisition is expected to cost around $300,000.
LanBit (India) claims it has a 30 per cent market share in the Indian modem market and expects to close the year 1998-99 with a turnover of over Rs 45 crore.
The company also wants to integrate backwards to set up a manufacturing facility in India. The total investment involved in setting up the unit is estimated at Rs 10 crore.
LanBit (India) is also putting up a laboratory for testing modems to make them compatible with different software and hardware standards.
In order to finance the projects, the company is planning a private placement of equity shares with private equity investors.
''The initial response from private equity funds, both domestic and foreign ones, has been good and we expect some developments within six months,” said Mr Kumar.
(Source:ET,India) |
