Digital Equipment (India) Ltd, which became a subsidiary of Compaq recently following its global acquisition, will now be known as Compaq Computer Technologies India Ltd.
This change in name will echo the new status of the company as a subsidiary of Compaq. Following this decision, the company plans to seek the shareholders' approval to ratify the name change.
As a result of the recent merger of Compaq Computer Corporation and DEIL, the company has also announced changes in the board of directors of the merged Indian entity. Paul Chan, vice president and managing director, Asia-Pacific division of Compaq, has been appointed as chairman of the board.
The new directors inducted are Tan Cahoon Seng, vice president, finance and strategic planning, Asia Pacific division of Compaq and Ben Wells, vice president and corporate treasurer, Compaq Som Mittal, who has been recently elevated as the managing director of Digital India, will head all of Compaq's business in India.
According to Paul Chan, as a result of the merger, Compaq is reviewing its structures on a world-wide basis. "As part of this evaluation, Compaq is looking at all of its affiliates business in India to determine the best corporate structure going forward. Until such decision is made, the respective legal entities will continue as separate entities under a common management, thereby presenting a single face to the customer," he said.
Although, Compaq has merged most of Digital's units worldwide with it, its Indian subsidiary Digital India remains the only subsidiary which is not yet a 100 per cent wholly-owned subsidiary. This has left Digital India to retain its individual identity in India. Digital, which has finished 10th year of operation in the country, has recorded a profit after tax (PAT) of Rs 27.4 crore, an increase of 8.5 per cent over the previous year.
"The company recorded a faster than industry growth in product volumes and emerged as No 2 in PC server sales and in the top 5 in desktop revenues for the year," said Som Mittal. Digital's income also rose to Rs 353.8 crore, an increase of 25 per cent over the previous year's figure of Rs 284.1 crore. However, the company's profit before tax of Rs 36.2 crore was marginally lower by 6 per cent than the previous year's figure of Rs 38.7 crore.
DEIL's earnings per share works out to Rs 8.4 against the previous year's Rs 7.7. " All the company's lines of business remained profitable," claimed Digital. The board of directors have recommended a dividend of 15 per cent on the equity share capital of Rs 32.73 crore. The company paid a dividend of 15 per cent for the fiscal year 1997.
