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British IT firms to start operations in Gujarat
Tuesday, 06 July 2004, 19:30 IST
GANDHINAGAR: Strengthening Gujarat's place on India's IT map, two British firms have announced plans to set up shop here.
The two companies, Quality BPO Services Limited and Allied Computers International (ACi), will start operations in Infocity, the IT park on the outskirts of this state capital.
While Quality BPO, a subsidiary of the Britain-based QX Limited, will start the first phase of its software development and financial accounting outsourcing unit, ACi is setting up India's first laptop manufacturing unit at Infocity.
Said Chris Robinson, CEO of Quality BPO: "We are planning to invest approximately 
80 million ($1.7 million) over the next three years in this venture. In the first phase, we will be employing around 250 professionals. Subsequently, many more supplementary jobs will be created."
"Our business model is simple. We are seeking to acquire companies in Britain with high running costs but low profits and moving them to Gujarat to achieve the opposite," Robinson told reporters.
"We have done it before with a British firm called another.com, which has an annual turnover of 80 million pounds and was losing 800,000 pounds per year. By moving the business to India, we have turned it around into a profitable business making 2.4 million pounds per year," he added.
Quality BPO is also developing a new concept called 'business start up outsourcing'.
Explaining, Robinson said investment in start-up companies is considered risky as they have a high failure rate in the first two years. The cost of a start up in Gujarat is one-fifth of the cost in Britain. Therefore, new services and ideas can be attempted with a far lower risk profile.
"Gujarat offers many benefits. With direct flights between Ahmedabad and London, the trip is only eight hours. Our team has been impressed by the high level of education in the state," he added.
The British notebook computer specialist ACi is equally enthusiastic.
Its laptop manufacturing unit will be a 100 percent export oriented unit but will also cater to the domestic market.
"ACi came to India with the mission of equipping the nation with state-of-the-art mobile computing technology at affordable prices. The facilities at Infocity will help bring prices of notebooks down even further," ACi chairman Hirji Patel told reporters.
"Current duty structures discourage the local manufacturer and favour established foreign brands. Our new plant will help combat this and ensure that ACi encourages local partners in India," he added.
ACi plans to start its first phase of operations by the end of the month.
In the first phase, the production capacity will be 7,000-10,000 laptops per month. Production capacity will be increased to 50,000 units per month by March 2005 with exports to Britain and emerging markets like Dubai, Sri Lanka, South Africa and East Africa.
The company plans to shift its entire production facilities in Britain to India by the end of September 2004.
Investments shall be in phases starting with 100 million and then going up to 200 million by the end of the year.
"Our decision to set up this unit was based on a thorough survey carried out by us in various states. We were offered excellent incentives by the state government and the IT park provided the total solution in terms of the complete package that a hardware unit like ours requires," said Patel.
Source: IANS
80 million ($1.7 million) over the next three years in this venture. In the first phase, we will be employing around 250 professionals. Subsequently, many more supplementary jobs will be created."
"Our business model is simple. We are seeking to acquire companies in Britain with high running costs but low profits and moving them to Gujarat to achieve the opposite," Robinson told reporters.
"We have done it before with a British firm called another.com, which has an annual turnover of 80 million pounds and was losing 800,000 pounds per year. By moving the business to India, we have turned it around into a profitable business making 2.4 million pounds per year," he added.
Quality BPO is also developing a new concept called 'business start up outsourcing'.
Explaining, Robinson said investment in start-up companies is considered risky as they have a high failure rate in the first two years. The cost of a start up in Gujarat is one-fifth of the cost in Britain. Therefore, new services and ideas can be attempted with a far lower risk profile.
"Gujarat offers many benefits. With direct flights between Ahmedabad and London, the trip is only eight hours. Our team has been impressed by the high level of education in the state," he added.
The British notebook computer specialist ACi is equally enthusiastic.
Its laptop manufacturing unit will be a 100 percent export oriented unit but will also cater to the domestic market.
"ACi came to India with the mission of equipping the nation with state-of-the-art mobile computing technology at affordable prices. The facilities at Infocity will help bring prices of notebooks down even further," ACi chairman Hirji Patel told reporters.
"Current duty structures discourage the local manufacturer and favour established foreign brands. Our new plant will help combat this and ensure that ACi encourages local partners in India," he added.
ACi plans to start its first phase of operations by the end of the month.
In the first phase, the production capacity will be 7,000-10,000 laptops per month. Production capacity will be increased to 50,000 units per month by March 2005 with exports to Britain and emerging markets like Dubai, Sri Lanka, South Africa and East Africa.
The company plans to shift its entire production facilities in Britain to India by the end of September 2004.
Investments shall be in phases starting with 100 million and then going up to 200 million by the end of the year.
"Our decision to set up this unit was based on a thorough survey carried out by us in various states. We were offered excellent incentives by the state government and the IT park provided the total solution in terms of the complete package that a hardware unit like ours requires," said Patel.
Source: IANS