eInfochips to invest $10-m in three years

Pragati Simlote

NEW DELHI: Having set its sights on the Japanese market, Ahmedabad-based eInfochips Ltd, provider of silicon design, embedded systems and software services, is planning to expand its India operations.

The company is planning to set up campuses in Ahmedabad and Pune and invest $8 million - $10 million in the next three years.

eInfochips is also looking towards increasing its headcount to more than 1,000 employees by 2008 with 700 engineers in Ahmedabad and 300 in Pune. Currently, eInfochips has 450 engineers working across in Ahmedabad, Pune and Santa Clara (CA).

Having grown at around 60 percent in the last two years, eInfochips is now targeting 80 percent growth. In the next fiscal, it plans to increase its current turnover of $10 million to $18 million.

The company is also examining the IPO route to finance its investments. Plans are also on the anvil of opening a design center in Bangalore so as to be close to the customer. It is also open to acquiring a small design company in order to further grow its expertise.

Detailing the overseas expansion plans of the company, eInfochips founder & CEO Pratul Shroff said that the company plans to look at Europe after consolidating its Japanese operations.

eInfochips is partnering with Cubic Micro to set up eInfochips KK (eInfochips Japan).

“We would start its office there by the end of the next quarter with around 10-15 engineers and two sales people. The Japan subsidiary will undertake chip design services like testing (system level testing of chips), board level designs, verification of the chips, etc. To overcome the language barrier, we are training 15 of our engineers in Japanese language and knowledge of Japanese culture and business etiquette so that they can go and work there,” he added.

Majority of the company's revenues come from the US. It has three offices in the US and employs 40 engineers and eight sales people there. The company plans to open two more offices in the US.

The company currently provides services like verification of chips, design (SOCO) integration and chip layout.

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