Logix Microsystems plans foray in EU

Bangalore-based Rs 30 crore Logix Microsystems Ltd, a software products company focused on automotive e-retailing solutions, is planning to expand its operations in Europe and West Asia this year.

The company aims to launch its flagship product, izmocars, a portal that helps car manufacturers and dealers sell their products by using creatively-designed and developed streaming multi-media content.

Izmocars hosts interactive animations for each and every car that it features, which enables the viewers a "touch and feel" experience. One can take a car for a virtual spin, paint it in different colours from the available colour palette, and experience a 360 degree interior and exterior view. In addition the portal provides comprehensive information on all types of new and used cars.

Said Pankaj Patel, Vice President, Logix Microsystems Ltd, "We have been growing in the US. As we see a sign of slackness in the US market this year, we want to focus on other markets for growth. In order to keep our growth momentum intact, we have decided to expand outside the US and Europe and West Asia are natural choice for us to go forward. In addition, we have a huge untapped Indian market ahead of us, where we recently launched our product."

He said the company will open its office at London by the end of first quarter next fiscal and also open an office at Dubai to cater to the markets in the UAE. The London office will take care of the UK market to begin with.

As part of its growth strategy, the company recently launched its product under the Carazoo brand in India. Presently, there are 23,585 new car dealers in the US. Logix presently has 1,500 car dealers as its customers and aims to double the number over the next two years.

Car buyers can seek individual car prices, technical specifications and features, tools to compare cars of their choice, reviews, car accessories, financing tips, loan tips and insurance tips from izmocars.

Logix Microsystems is also planning to grow its business through the inorganic route.

The company, which raised Rs 98 crore through a QIP offering in September last year, is presently in the process of acquiring a company in the US. It has already made two acquisitions in the US like Carsite and ReckonUP. It is now planning to acquire a company in the auto accessories and leads management software space.

"We have shortlisted two-three companies and are doing the due diligence and we hope to conclude the deal by end of this financial year. The acquisitions being explored will place izmocars amongst the top three automotive e-retail solutions providers in the US," Patel said.

In India, the company has till now designed and hosted its car portal, Carazoo.com for only a Maruti dealer in Bangalore, since its launch in August 2007.

"The response in India is very slow. New car dealers are yet to understand the importance of online sales. Though internet penetration is wider in the country, car dealers are a bit slow in pushing sales through the net," he said.

Carazoo has a massive database of dealer information that allows a browser to select a dealer outlet for his car of choice according to desirable proximity and get a price quote by filling out a simple form or ask for a test drive free of cost.

The company's services are presently available in 42 cities and by April this year, it plans to launch its services in another 22 cities. In 42 cities, car buyers can getting pricing information and buy or sell new and used cars.