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13 | Teledata Informatics: Acquisition Story

Even as Teledata basks in acquired eSys strengths, re-structuring might take a toll on stability

Saturday, July 21, 2007

It was a frantic year for Teledata. With a strategic $105 mn investment, the company acquired majority stake in IT distribution major, eSys Technologies. Interestingly, the acquisition seemed to spur off an entire re-structuring exercise, as Teledata announced plans to hive off its marine and technology divisions into separate bodies, to be listed separately on the NSE and BSE.

Teledata Technology Solutions, the demerged entity for the technology division, will consolidate all technology related subsidiaries including eSys. Which seemed to be at the heart of this consolidation with Vikas Goel, presently eSys MD, proposed to head TTS as CEO.

The eSys acquisition added hardware and distribution strengths to Teledatas existing software offerings. eSys brought with it strengths like vendor and partner relationships, reach, logistics efficiency, and manufacturing capability. The company that emerged was an end-to-end solutions provider with seamless IT solutions ranging from hardware to solutions and servicesleading to an SI offering. The result: a couple of new projects on the basis of its synergistic portfolio. This included a project in Bihar for 1,000 schools, and from Nagaland State Council of Educational Research and Training. It also picked up a BOOT project for 800 primary schools from Gujarat.

l Start-up Year: 1990 l Products & Services: Marine, e-learning, education, technologies, networking and communication l Employees: 3,750 l Address: 2AB, Gee Gee Emerald 151, Village Road Nungambakkam Chennai 600 034 l Tel: 28207991/ 92 l Fax: 28250091 l Website: www.teledatain.com

Highlights	Acquired global distribution major eSys Global presence went up to 48 countries and 166 cities
Strengths	p The eSys acquisition added hardware and distribution strengths p With synergies falling in place, pitching for big ecosystem deals will be easier
Weaknesses	q Dual focus on distribution plus SI could be a challenge q Consolidation of subsidiaries could cause short-term instability

Gr Capt K Balasubramanian, chairman

K Padmanabhan, promoter and MD
NC Rangarajan, chief administrative officer
Jamshed Pandey, VP, Strategic Initiatives
N Ramanathan, company secretary
M Deepak Bhattad, group finance manager

Teledata also went ahead with organic expansion with plans to pump in Rs 250 crore for setting up a PC manufacturing unit in Baddi, Himachal Pradesh with an installed annual capacity of 1.2 mn units, to be operational by Q3 FY 08. DQ

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