Aftek to open shop in UK

Shubhendu Parth& Rahul Gupta

MUMBAI: As part of its strategic initiatives and investments in new geographies, Mumbai-based Aftek Infosys, an IT products and services has signed a memorandum of understanding with a UK-based company- Talgeri, to float a joint venture company called Aftek 3G Tel.

Confirming the news, Aftek’s Chairman and CEO Ranjit Dhuru informed Cyber News Service that the company would be investing around £2.5 million, over the next two years, in this newly formed venture. CTO of the UK based 3G products and services company 3–formerly Hutchison 3G, UK–Niren Talgeri would be the CEO, while Ranjit Dhuru would be the Chairman of the new company. The company is expected to inform the stock exchange about the development soon.

Sources also informed that while Talgeri had already set up the company–Aftek 3G Tel–some time back in the UK, negotiation to formalize the Memorandum of Understanding (MoU) with Aftek Infosys was initiated around two months back.

According to the MoU, Aftek would be acquiring 49 percent stake in Talgeri’s venture, which has an expertise in areas of wireless and mobile, particularly in the 3G and other emerging technologies. Beside the development of critical intellectual property (IP) based components and products based on these IPRs, the joint venture would also work towards bagging service business in the mobile and wireless space from several clients including 3.

Talking about the new venture, Dhuru said, 'The joint venture provides Aftek with an avenue to exploit the strong growth opportunities in the mobile and wireless and 3G space. Backed by our success in creating strong IP based components and new IPRs and the expertise to convert them into products, we are hopeful that the joint venture will help us gain a strong foothold in UK.'

He also said that beside the IPRs owned by Talgeri, the alliance would also bring into Aftek 3G Tel, his capabilities and experience at creating new IPRs and the strong relationship with 3. 'In the long-term we expect the 3G Tel team under Telgiri’s leadership to create products in the 3G space. However, our immediate gains come from the substantial business in terms of services from the sector,' Dhuru stressed.

Talking about the proposed £2.5 million investment, he said that the amount would be spent in creating the infrastructure to convert the IPRs held within Aftek 3G Tel and those acquired by 3 in the recent past into viable products.

Towards this, and to execute service contracts that would flow into the company via the joint venture, Aftek would also be augmenting the staff strength at Aftek 3G Tel. 3G technology in UK is currently spearheaded by 3–the main agency of Hutchison Whampoa, the Hong Kong based ports and telecom group, which is investing over US $16 billion in 3G technology over the next two years in UK

Niran Talgeri, CEO, Aftek 3G Tel said, 'From ideating to creating, productizing and maintaining new IPR based components and products, there is a lot of work involved. Of course, the value addition that brings with it too. The investments being made in the 3G space is a testimony of the huge growth potential that exists in this area.'

Aftek, a dominant player in the enterprise business management solutions space with focus on infrastructure, information and processes management had only recently acquired a 49 percent stake in Arexera Information technologies GmbH, a Munich-based company with considerable experience in the development of innovative technologies and complex solutions in the fields of knowledge management, data compression and content management.

The Aftek Infosys scrip ended at Rs 242.40, down 6.89 per cent from the previous close of Rs 260.35, at the Bombay Stock Exchange today.