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Preeti Pandey

Mumbai , Sept. 4

THE proceeds from Aptech Ltd's proposed $30 million GDR issue would be used for funding acquisitions both IT and non-IT training facilities, a senior company official said. The company is in the process of identifying firms and is expected to clinch a deal by end of this year.

"We would be looking at firms with overseas presence particularly in the developed countries,'' said Mr Pramod Khera, CEO and Managing Director, Aptech Ltd.

"The primary purpose of the GDR is for acquisitions and we are looking at two to three acquisitions. We are in the process of identifying firms and the deals should be completed by the year-end. Since we do not have a presence in the developed markets, we would extend our presence in these regions through the (acquired) companies," Mr Khera said.

While the Global Depository Receipts, to be listed on the Luxembourg Stock Exchange, would be issued by end-September, the acquisitions should be completed by the year-end, Mr Khera, told Business Line.

Currently, Aptech has established its presence in 52 countries and these international markets account for 35-40 per cent of the company's overall revenues. With its future thrust on China, Colombia, Latin America, Vietnam and Russia, the IT-training company expects revenues from global markets to grow to 50 per cent.

According to Mr Khera, the fomal educational system in these regions is not strong giving Aptech an immense opportunity. "These countries represent a really big market with nearly 100 per cent growth," he said.

And given the huge opportunities available world wide for animation and multimedia, Arena Multimedia, the multimedia division of Aptech, would open its centres in the Philippines, Ireland, China and Korea. The global animation industry would touch $30 billion by 2005 and represents huge opportunities for Indian companies to provide outsourcing services in animation, multimedia gaming and digitising films, added Mr Khera. The total animation production by Indian companies amounted to $600 million in 2001 and would reach $1.5 billion in 2005.

Incidentally, companies shorlisted for the proposed acquisition could also be content providers in domains such as HR, accounting and banking. "We are a IT-training company and we are looking at extending our content to non-IT areas," revealed Mr Khera.

Aptech has already entered into a tie-up with UK-based Tack to offer sales programmes and plans to broaden the course with its recently-launched programmes for the BPO/ITES segments and film studies.

The non-IT offerings are expected to contribute substantially towards the company's revenues over the coming years.

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Aptech GDR proceeds to fund acquisitions

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