Allied Computer of UK to set up unit in Gujarat

Allied Computers International (Asia) (ACIL), a 100 per cent subsidiary of the UK-based Allied Computer Industries Plc, will set up a notebook manufacturing plant in Gujarat.

The facility is expected to be commissioned by the second half of the current financial year. It will located at Infocity, the IT and ITES-BPO park set up by Creative IT Inc in association with the Gujarat government.

ACIL, which recently entered the Indian laptop market, is targeting a 10 per cent market share in the Indian laptop industry in the next two years. It also plans an initial public offer (IPO) to raise capital for its operations in the country.

"ACIL has decided to start manufacturing its notebooks from within Infocity, which is strategically located between Ahmedabad and Gandhinagar. An official announcement is likely to be made in the first week of July," said a source close to the company.

ACIL may invest Rs 100 crore in the initial phase, the source added. None of the companies selling laptops/ notebooks in India have a manufacturing facility in the country at present.

IBM Corporation, which dominates the Indian laptop market, has recently filed an application with the Foreign Investment Promotion Board (FIPB) for setting up a facility in India through IBM Global Services India.

ACIL has 11 varieties of notebooks/ laptops being sold in the UK. Some of these are now also available in India. ACIL plans to widen its marketing network once it kicks off manufacturing at Infocity.

While it has been selling the Ethos V notebook in India, ACIL also plans to shortly introduce its Emerald C and other Emerald branded variants "" priced between Rs 29000 and Rs 35,000.

"With laptop sales on the rise in India "" around 49,000 machines were sold last year "" the size of the market is expected to grow to 65,000 in the next year. ACIL targets at least 10 per cent of this market, with pricing the key strategy. Its products are a cheaper option for students in various management and other academic institutions, where using a notebook is almost mandatory," said an industry source.

While ACIL officials were not available for comment, a source at Infocity confirmed that ACIL has signed an agreement with it to start operations.