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MRO-Tek ties up with IL&FS

IL&FS' venture capital funding arm, IVC, will invest Rs 20 million in the company in the form of non-convertible debentures.

T O D A Y

• Global Slum • Embedded software     may attract duty • IHS wants to buy     out India partner • Max Touch is renting     out cell phones • IL&FS lays Rs 20m     bet on MRO-Tek

By 2000, an option will be available for IVC to convert them into equity. IF IVC opts for equity, its share will be 5 per cent. In 1996, IVCM, a British venture capital company, invested Rs 40 million in MRO-Tek, which translates into a 42 per cent stake.

IVC's participation is expected to accelerate MRO-Tek's growth, leading to greater market share. The funds will be used to finance some of MRO-Tek's plans, which include tie-ups with two American companies.

While refusing to divulge the names of the companies, the chairman and managing director of the company, S Narayanan, said that one of them would be for the sale of network computers in India and the other for remote access products.

The NCs would be available in the Indian market within three months and would be priced at Rs 30,000, he said.

The company is "taking a risk'' with the product, since the market for it is still nascent, he added. Depending on the kind of business generated, MRO-Tek will also get into manufacturing NCs in India.

The decade-old company, which manufactures modems, multiplexers and cables for networking, recently opened a second centre in Bangalore. It is looking at a 50 per cent growth over the previous year and is confident of reporting a Rs 200-million turnover by March end.

It has a tie-up with RAD of Israel for modems, Fore Systems of the US for ATMs and with Zyxel of Taiwan for cables. The alliance with Fore Systems was signed last month. Narayanan said the market for ATMs is worth Rs 100 million.

- Compiled from the Indian media

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