Abee Info to tie up with UK firm

The Pune-based computer hardware and peripherals manufacturing company Abee Info Consumables Ltd (AICL) may rope in a computer peripherals company in the UK as an equity partner in its upcoming 'Dial an easy fill' project.

The AICL board is slated to meet on December 9 to consider the proposal.

Last fortnight AICL, which is listed on the Bombay Stock Exchange, had signed an agreement with the Bangalore-based Select Technologies Ltd (STL), a wholly owned subsidiary of Wep Peripherals, for the supply of printer ribbons.

The company said it has also decided to enhance its ribbon production capacity at its plant in Himachal Pradesh.

"We are planning to set a chain of retail shops across the country in the next two years which will be under our 'Dial an easy fill' project. We are at an advanced stage of discussion with an UK-based company which may finally join us as an equity partner. We have called a board meeting on December 9 for approval. Once we get the approval, we will approach the government for rest of the formalities," said B B Somani, managing director, AICL.

However, Somani denied to divulge the name of the UK company.

AICL will set up 120 such shops across the country in 75 cities under the 'Abee Shoppe' brand name.

It will set up 50 shops by the end of March 2005, while the remaining seventy will start operating in fiscal 2005-06.

Under the facility, a customer, by making a phone call, will get the service of the company's engineers.

"Our engineers will not only go and refill the cartridge but will also help the customer to learn to refill cartridges of their printers. These shops will be run by franchisees," he said.

"The tie-up with the UK company will be solely for the 'Dial an easy fill' project while we will fund the capacity expansion of our ribbon plant through the company's own funds.

"At present we have the capacity to manufacture 5,000 ribbons in a day which we are planning to expand to 25,000," said Somani.

The company, after its agreement with STL, is targeting a significant rise in its turnover at the end of the next fiscal.

AICL has reported a sales turnover of Rs 3.50 crore in the first-half ended September, against a turnover of Rs 3.8 crore in last fiscal.

"The Select Technologies contract will definitely boost our turnover in the long time. We are hopeful to record a rise of over 75 per cent by the end of this fiscal with a Rs 6 crore turnover against Rs 3.8 crore turnover in last fiscal," Somani said.

At the end of last fiscal, AICL reported a profit after tax of Rs 2.17 crore.