Allied Computers to shift laptops unit to Mumbai

The UK-based Allied Computers Industries Plc (ACI), a laptop maker, is shifting its manufacturing base to India in a bid to reduce cost and also offer very cheap machines locally.

The company is also planning to tap the Indian public market during the next fiscal with an issue worth at least Rs 100 crore.

Started by Indian entrepreneur Hirji Patel in 1992, ACI will be moving its manufacturing facility from the UK to Mumbai in the next six months. The unit has a capacity to manufacture 2,000 notebooks a month. ACI sells around 20,000 laptops per year, including exports to the Middle East.

"Our objective is to make laptops as affordable as possible and we intend to offer our laptops at the cost of an assembled PC which costs around Rs 15,000. To this end, we are taking steps to manage costs in an efficient way," Patel said.

The company is launching a basic laptop for Rs 29,999. This model comes with a VIA chipset, 60GB hard disk, memory upto 512 MB, optical drive and a Linux operating system.

According to Patel, the shift will save ACI about 20 per cent in manufacturing cost. "Taking this further, to expand our operations in the country and make affordable laptops, we intend to raise money in India with an issue of at least Rs 100 crore during 2005-06."

Patel said ACI intends to sell 60,000 laptops during the current year which will see it turnover touching Rs 100 crore from the current Rs 12 crore in its Indian operations.

In addition to this operation, ACI has extensive network of service care centres across India and it offers services to any brand of laptop.