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Computech Intl set to launch low-priced PCs

Our Bureau

CALCUTTA, June 20

COMPUTECH International Ltd will soon launch personal computers priced at below Rs. 15,000. A tie-up has been forged with Bell Inc. of the US for sourcing of components.

Both companies would also jointly market PCs manufactured at Computech's Silvassa plant in SAARC and South-East Asian nations.

Mr. S.K. Rateria, Chairman of Computech International, told a news conference here that the idea was to penetrate upcountry markets with lower-end and affordable PCs. With the hardware business picking up, Computech was hopeful of selling 3,000 PCs -- bo th lower end and top end -- every month to begin with.

According to him, a total investment of Rs. 47 crores has been planned on augmenting its capabilities in the IT arena. Within the next four months, Rs. 22 crores would be invested in the hardware and software businesses. Besides, an investment of Rs. 8 c rores had been earmarked for Internet services which would be offered under a new company that has been formed for the purpose. The new company, Vedanth.com Worldwide Ltd, has been granted `B Category' ISP licence.

To begin with, Internet services would be offered in Calcutta. Later, the services would be extended to Siliguri, Guwahati and Rourkela. In the next two years, the service would cover the entire country. The Internet project would entail a cumulative inv estment of Rs. 200 crores in the long term. This would be raised through internal resources and equity dilution.

Computech would also lay stress on software development, especially ERP solutions for small and medium enterprises. Its ERP solutions were being upgraded for Web-enablement and interface with customer relationship management. Last fiscal, Computech softw are business generated a revenue of Rs. 30 crores.

During 1999-2000, Computech International's turnover stood at Rs. 73.12 crores against Rs. 78.09 crores in 1998-99. The lower turnover has been attributed to hiving off the transport agency and trading activities last year. The profit before tax stood at Rs. 16.93 crores (Rs. 10.68 crores). A turnover target of Rs. 138 crores has been pegged for the current year.

To expand its shareholders' base, Computech has split its fully paid-up shares of the face value of Rs. 10 each into two shares of the face value of Rs. 5 each.