Psi Data To Pick Up Birla Tech For Rs 11.26 Crore

Software company PSI Data Systems, which was recently acquired by the A V Birla group, has decided to acquire 99.91 per cent stake in Birla Technologies-- a subsidiary of group flagship Grasim Industries.

This is a part of the group's strategy to integrate its software businesses under one umbrella. The proposed acquisition, which has already been approved by the PSI Data Systems board, will be for Rs 11.26 crore. The board of Grasim Industries is yet to consider the issue. Indian Rayon, another group company holds 70 per cent stake in PSI Data Systems.

Mukesh Patel, chief executive officer and business head of the group's software and IT services said, "Both the companies will continue to operate as separate entities but will approach the customer base jointly. The idea is to save cost across several support functions as we exercise growth plans in the near future."

PSI Data System specialises in enterprise integration and mobile applications and has an annual revenue in excess of Rs 30 crore. The company employs 250 employees across US, Europe and India.

"Distinctive advantages stem from the expanded footprint that the combined entity of PSI and BTL offer. Besides synergies in product offering and services to end users we will be geared to win and execute larger business deals, given out collected strength and expertise," Patel added.

PSI has reported a total income of Rs 17.49 crore for the quarter ended December 31 and 80.99 crore for the year ended December 31. It recorede a loss of Rs 4.21 crore in the quarter and Rs 8.5 crore for the year ended December 31, 2001.

The company has also inducted entrepreneur Damodar Ratha and president of the Alumni Association of the Massachussets Institute of Technology onto its board.