Omnitech Info eyes China, Far East

Company is also ready to set up subsidiaries abroad.

Mumbai-based Omnitech Info Solutions Ltd, provider of IT solutions and technology services like infrastructure management services (IMS) and software testing, is eyeing China and South East Asian countries like Singapore and Malaysia for its overseas business.

The company, which is basically looking for strategic alliances, is also ready to set up subsidiaries there. Omnitech has already finalised at least a couple of deals for acquisition.

"We want to grow our overseas business. At present, it forms 27 per cent of our total revenues. Our overseas business presently extends to US, Japan, West Asia, Europe and Canada, of which we have two subsidiaries, one each in the US and Japan," said Atul Hemani, Managing Director of Omnitech InfoSolutions Ltd. He added that the acquisitions will be of companies involved in IMS and/or software testing and cater to international clients.

For the acquisitions, setting up of overseas offices as well as for enhancing its existing facilities, the company is entering the capital market on July 19, with an initial public offering of equity shares aggregating to Rs 35 crore in the price band of Rs 90 per equity share to Rs 105 per equity share of Rs 10 each.

The core strength of Omnitech's business lies in offering several IT services and products like infrastructure management services, software testing, systems integration solutions, framework solutions and products to sectors like Enterprise Resource Planning (ERPs), BFSI (banking, financial services & insurance), manufacturing, Customer Relationship Managements (CRMs) and Government bodies.

Omnitech is also aiming to grab 35-40 per cent chunk of the global market in the next three years by increasing its international business from current 27 per cent to 50 per cent by next year.

"The global market for IMS itself is $150 billion and there is still a lot to happen in this market," added Hemani.

Moreover, the global market for software businesses stands at $80 billion, while the market for software testing itself is around $13 billion.

The company's topline for the year ended March 31, 2007 stood at Rs 77.80 crore and it earned a PAT of Rs 11.83 crore.

Post-issue, at the higher band, the company's market capitalisation would be valued at around Rs 138 crore.