ESys to invest $238.09 M in India

By agencies   |   Monday, 14 May 2007, 07:00 Hrs
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eSys Technologies, a Singapore-based $2.1 billion IT major component with worldwide back office operation is investing $238.09 million in India, reports The Economic Times.

According to the report this includes $59.52 million investment in setting up a manufacturing plant at Nalagarh, Himachal Pradesh with an annual capacity of 1.2 million units and another $23.8 million in global back office operation in Chandigarh. The balance will be spending into its distribution business in the country.

To be the nerve centre of eSys worldwide business, it will give infinite operational scalability to the firm?s commercial dealings.

?The investment will happen over a period of three years. The global back office operations at the Rajiv Gandhi Chandigarh Technology Park (RGCTP), will be recruiting 2,000 persons initially. The number of recruitments will go up to 5,000 by 2010, thus making it the second largest employer in RGCTP after Infosys. Other than this, we will be investing about $166.7 million in strengthening our back-end operations and distribution network across the country,? Vikas Goel, CMD, eSys Technologies told ET.

Goel pioneered a concept of total business offshoring/ outsourcing (TBO) in which whole business in multiple locations are run from low-cost, high skilled countries. eSys would be using its nerve centre in India to carry out this concept of lower inventory costs, by providing global logistics, transactional services, sales and service support, reverse logistics and ERP. The cost of selling, general and administrative expenses reduced from 15 percent to four percent with this concept.

In 2005-06 financial year eSys saw a growth of 50 percent business growth in India. It also marked sales of $380.95 million in India. It plans to touch $595.23 million by 2008 from its Indian operations. ($1=42)

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