Aptech Priming Major Overseas Expansion Plan

Aptech Ltd, the information technology major, will embark on an ambitious overseas expansion plan over the next two-three years, setting up 100 centres across Asia, Africa, Latin America, United Kingdom and the US.

Diversification is also on cards, moving from a pure training institution to a software development and on-line multimodal technology usage corporate. All the projects will commence in a phased manner and Aptech will explore the option of tapping the markets overseas to raise more funds in Jan-Feb 1999, top officials said. The current expansion would be made mainly through internal accruals.

According to the plan, more subsidiaries will be set up in the US (Aptech Worldwide Corporation already exists in the US), with 24 more to be set up in 20 countries by the end of this year, mainly across Middle East, eastern Europe, Latin America and south-east Asia. Speaking of the expansion plan, Ganesh Natarajan, managing director, Aptech Ltd, said, "We had to look beyond simply providing diversified products in the markets here. The expansion would have to be through the overseas route, with the focus being in the US and Latin American markets." At least 20-25 centres would be set up across Asia (barring China, Japan and Indonesia considering recent events), 25 across the African continent and another 45 centres in eastern Europe.

 

Aptech would set up 100 per cent subsidiaries across the US markets but would look at joint ventures in the south-east Asian markets (where it proposes to set up 8 software development centres by next year). Aptech already has a company in Kuala Lumpur - Hexaware Technologies Sdn. Bhd.

"We have reoriented our efforts to deliver education in multiple forms - from video to CBT to CD-ROM and Internet. The development centres have now moved into the on-line training module with Crossware applications to provide a new range of products for Indian and international markets," he added.

Aptech will set up 2,500 development centres across the country in the next 18 months. Natarajan assessed that the software boom would continue over the next 2-3 years, with the recent government sops aiding the growth.

Aptech Ltd recorded a turnover of Rs 120.56 crore for the six months ended June 30, 1998, growing by 41 per cent from Rs 85.2 crore for the corresponding period last year. Profit after tax rose by 50 per cent from Rs 9.1 crore to Rs 13.74 crore in the current year. The Aptech scrip at the secondary markets has witnessed low trading interest in recent months, with the scrip closing at Rs 505 at the Bombay Stock Exchange yesterday against a previous close of Rs 496.