Info-tech

Infotech Enterprises in talks to buy aero engineering service firm

Our Bureau Hyderabad | Updated on February 08, 2011 Published on February 07, 2011

Mr Krishna Bodanapu (left), President, Engineering,Infotech Enterprises Ltd, with Mr Rajendra Velagapudi,Senior Vice-President, Aerospace Operations Unit, announcingthe ‘Integrated global aerospace accelerated growth plan’ inHyderabad on Monday. — P.V. Sivakumar   -  Business Line

Infotech Enterprises, an engineering services and GIS solutions company, is in advanced talks with a European company focussed on aviation practice. “We might close the deal in the next few months,” said Mr Krishna Bodanapu, President (Engineering) of Infotech.

Addressing a press conference here on Monday, he said the company has merged different streams of activity such as strategic business initiative to form Integrated Global Aerospace practice.

“We have been reactive to certain tasks required by our clients. But we would like to proactively develop products and sell those ideas to our clients,” he said.

The global aerospace engineering services spend was expected to double to $14 billion in 2020 from $7 billion in 2009-10. “The rising engineering costs and decline in resource availability have forced engineering entities across the world to turn to India and China,” he said.

Aviation competencies

“We see gaps in our aviation competencies. For one, we are strong in metallic structures. We can absorb abilities to gain strength in composite structures,” Mr Rajendra Velagapudi, Senior Vice-President and Global Delivery Head (Aerospace) of Infotech said, commenting on the proposed acquisition.

As part of attracting customers, the company has lined up discussions with 65 companies, including some OEMs (original equipment manufacturers) at the Aero India 2011 meet to be held in Bangalore from February 9.

Mr Krishna said the company would recruit 1,800-2,000 more employees in 2011-12. At present, it employed 8,500 people. The Kakinada SEZ would have 200 employees from the present 50 in the next six months.

The other focus area would be concentration on 10 countries, including Japan, in order to tap the potential markets for engineering services and GIS services.

He said the company might go for a change in name in two years in order to reflect the strengths in engineering services and GIS. “The present name suggests the generic industry of IT,” he said.

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Published on February 07, 2011
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