NYSE-listed firm will soon launch its solutions distribution business in India
MUMBAI: New York Stock Exchange listed Avnet Inc on Friday strengthened its presence in the Indian market through an acquisition of Mumbai-based systems integrator Ontrack Solutions, for an undisclosed sum.
Ontrack closed last fiscal with revenues of $13 million and has over 160 employees on board.
The acquisition is expected to diversify the $16-billion Avnet, currently into distribution of electronic components, embedded systems, enterprise computer and storage products, to services area.
Currently, the services comprise a small portion of the overall company’s revenues.
“India is the fastest growing IT market in Asia and no one can afford to miss the opportunity. The country will become a base for world wide SI practice,” K P Tang, president, Asia Pacific, Avnet Technology, Hong Kong, said.
Avnet has two primary divisions - electronics marketing and technology solutions, with the former being 59% of revenues. Electronics marketing distributes — semiconductors, interconnect, passive, and electronic devises.
The technology solutions group markets enterprise and embedded technology products and services from leading computer manufacturers and software suppliers.
So far, the electronic marketing division has been present in the country, which distributes products for principals such as Kingstone, AMP, and Gigabyte. Its revenues from India were $120 million last year.
The company will soon launch its solutions distribution business in India.
“We aren’t in the enterprise storage market in the country, which is estimated to be over a billion dollars. But, we will enter that space, and will launch value added distribution solutions with key vendors,” Jaideep Malhotra, vice president and general manager, of the company said.
Now, being part of a larger organisation, Ontrack can bid for larger systems integration projects and also tap into Avnet’s enterprise clients.
g_rabin@dnaindia.net
