Hit By Molasses Decontrol, Ashok Organic Eyes Computer Market
The company has tied-up with the US-based Tech 2000, a specialist supplier of computer hardware.
Tech 2000 has a strategic alliance with Northamber plc, UK, a (POUND SYMBOL) 232 million (Rs1,300 crore ) specialist supplier of computer hardware, software, computer printers and peripheral products and other electronic transmission equipment.
Ashok Kadakia, chairman & managing director of Ashok Organic, said the company initially plans to import the products, assemble them and finally produce the products indigenously. Both the partners will initially invest Rs 25 lakh each in the 50:50 joint venture.
The new company, christened Tech 2000 India, will distribute Bluepoint SVGA monitors, Seagate hard disk drive, modems and Hewlett Packard products. It will target the middle and high-end users.
The business will concentrate on volumes as the company will deal only with top manufacturers.
Since the company's forte is high-value chemicals, the diversification into the computer industry seems unrelated as no synergy is involved. Kadakia explained that after the decontrol of molasses, the company was badly hit and diversification appeared to be the only solution to its problems.
The company, he added, chose the information technology industry because of its rapid growth prospects.