Chennai-based IT solutions firm Zylog Systems Ltd is looking to increase its presence in Australia by setting up its own office there with an initial investment of around $2.5 million (around Rs 12 crore). Besides, its plans for acquisition, mainly in the ERP space, in the range of $75 million to $100 million, is ongoing, said company officials.
We already have a prese-nce with our Silvanus360 vers-ion in Australia and around 14 people working in places like Sydney and Melbourne. We are planning to set up our own off-ice in Australia with an initial investment of $2-2.5 million, said Ram Sesharathnam, managing director and COO, Zylog Systems Ltd.
It is expected to complete launch of the Australian office in next two quarters and would look into requirement for add-itional investment in a later stage. We will look at strengthening performance of our products including FieldPower, legacy migration and bank companion in Australia, he said.
The company is also working on increasing sales of its products including FieldPower, a field service management software which provides end to end solution for cost effective service management in European countries, he added.
It also looking at an acquisition in US in the ERP space, in the range of $75 million to $100 million, said S P Srihari, global chief financial officer, Zylog Systems Ltd. We have around three to four leads in the US on this. It would either be an acquisition of the said size or two acquisitions in the $50million to $60 million range, he said.
The company has an order pipeline of $210 million in its kitty to be completed in the next six to 12 months. Of this, $38 million are newly signed in the present fiscal, he added.
It also expects expansion in the e-governance and wi-fi space in the domestic market. With presence in six states with wi-fi services, including Karnataka, Andhra Pradesh, Gujarat and Uttar Pradesh, it is planning to expand to Haryana and Rajasthan looking at potential rural broadband opportunities, he added. With presence in around 150 locations till June 30, 2011, the company expects to increase presence to 196 locations.
The company registered an increase of 27.50 per cent in net profit at Rs 44.97 crore in the quarter ended June 30, 2011, as compared to Rs 35.27 crore posted in the same period of previous fiscal. The gross revenue stood at Rs 513.59 crore during the first months of current fiscal, as against Rs 463.38 crore posted during the corresponding period of previous fiscal.
