The Hindu : Aftek Infosys picks up 49 p.c. stake in German firm

Online edition of India's National Newspaper
Friday, May 30, 2003

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Aftek Infosys picks up 49 p.c. stake in German firm

By Our Staff Reporter

BANGALORE MAY 29. Immense opportunities in information technology, biotechnology, manufacturing and automotive segments beckon Indian firms interested in setting up business partnerships in Munich, Germany. With support from the marketing and inward investment agency for media and ICT, the Munich-based gotoBavaria, ten Indian IT firms including Spatika and Aftek Infosys have already established their presence in the German State. The Mumbai-based Aftek Infosys has made one of the largest investments in Munich. The company has acquired a stake in the Munich-based Arexera Information Technologies GmbH, a knowledge management and data compression firm. The acquisition has led Aftek to increase its revenues from the European geography. "We have seen a 34 per cent increase in business from Europe where our business is relegated to Germany. There is a lot of opportunities for small and mid-size enterprises interested in pursuing business here,'' Ranji Dhuru, Chairman and CEO, Aftek Infosys, said.

Aftek Infosys has picked up a 49 per cent stake in Arexera for an all-cash deal of 8.86 million Euro. It has retained the right to acquire the entire 100 per cent equity in Arexera based on certain predetermined milestones over the next two years.

Meanwhile, the company plans to explore more joint ventures and partnerships to increase its financial position. A JV with a U.K.-based IT firm operating in area of mobile and wireless computing is in the pipeline, according to Mr. Dhuru.

For the nine-months ended March 2003, Aftek posted a net income of Rs. 66.06 crores with a net profit of Rs. 30.92 crores.

"We would like to think of the investment made by Aftek in Munich as a precursor to the many investments that are slated to flow in Europe. Eventhough the U.S. is still the most preferred destination for Indian IT companies, the persistent sluggishness in the economy coupled with the weakening dollar is frustrating big-ticket investments. In this context, Munich provides the perfect gateway to Europe,'' emphasised Pter Englert, Head of International Operations, gotoBavaria.

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