Silicon Graphics Keen On India Investments

The US-based $ 2.7 billion technical computing major Silicon Graphics Inc. (SGI ) is looking at investing in Indian technology companies in the digital graphic industry. This investment will come from the $ 100 million kitty that SGI has set aside for acquiring strategic stakes in technology companies.

"As part of the corporate strategy, we are actively looking at this option," said Jansen B Ek, vice-president, SGI (Asia Pacific) told Business Standard yesterday. "The investments will be made in companies that have synergy with our business strategy," he added.

SGI is looking at companies that have expertise in Lynx platform, digital graphic technology, application service providers and broadband Internet technology. "We will shortlist a couple of companies in the Indian market and a decision will be taken at a corporate level," Ek said.

 

He clarified that for now, SGI was interested in investing in India and not in buyouts.

SGI is also looking at working together with educational institutions. It is already working with the Regional Engineering College, Trichi and P S G Institute, Koimbatore. The company has helped these institutions to set up research laboratories in visual graphics. "Besides these two institutes, we are planning similar research laboratories in other institutes in India," Ek said.

Silicon Graphics also plans to set up graphic research centers in India. "We have about 600 such centers worldwide. This will be actively extended to India as well," he said.

Besides, the company is looking at upgrading its Indian operations to one of a value-added service centre, support centre and more research-oriented activities in the country. "We are looking at various options, including adding more research activities to India, and technical support services," Ek said.

The company has already invested $5 million in its Indian operations from the announced $15 million for its three-year investment plan.

"Of the $15 million fund, we have already invested $5 million in our Indian operations. Similar investments will follow this year," he added. The company's turnover from the Indian operations for the year ending June 1999, was Rs 83 crore. "We are looking at 35 per cent growth in India," Ek said.

SGI sells its products in India through distributors and value added resellers like Tata Elxi, CMC, Discreet Logic, Crompton Greaves Informatics and Summit Data Products.