Xenitis targets Rs 1,000 cr revenue in FY 2006-07

Pragati Simlote

NEW DELHI: Xenitis Group of Companies is targeting a revenue of Rs 1,000 crore in the next financial year.

The company expects to close FY 2005-06 with revenue of more than Rs 500 crore. It also has plans to come out with an IPO of Rs 250 crore in July — August 2006 to finance expansion activities of its IT arm.

Detailing the investment plans of the company, Xenitis Infotech MD Taghagatha Datta said, “We would use the money to concentrate on different technologies and develop products, undertake R&D and set up additional manufacturing facilities. Xenitis is tying up with a Chinese TFT manufacturer KTC to set up a TFT and CRT monitor manufacturing facility. We plan to invest Rs 50 crore in this venture.”

The Xenitis Group is also venturing into new areas like manufacturing of two-wheelers, launching a TV channel, etc. Xenitis Infotech manufactures the Aamar PC brand of PCs. Datta informed that the group is targeting a turnover of Rs 5,000 crore in the next five years, out of which the IT division is expected to contribute more than Rs 1,000 crore.

Xenitis Infotech also manufactures components in collaboration with China based Unitek Computer Company at its own facility in West Bengal. The company currently exports IT components to countries like Bangladesh and Nepal. Going forward, it plans to tap markets like Dubai and CIS for exports.

Xenitis national manager channels and distribution and overseas business Arup Sarkar said, “Currently, the contribution of exports to the company's overall revenue is very little. Going forward, we see around 40 percent of the company's 2006-07 revenue coming in from exports.”

To penetrate the domestic market further, the company plans to set up branded retail shops called 'Zone Xenitis' all over India. Sarkar said, “We will setting up 500 retail shops all over India, the first batch of which is expected to open by April 10, 2006. The shops would be managed by us while the supply of products would be done through Iris.”

“We are also planning to start a rural channel by appointing around 10,000 LIC agents all over India for marketing our products on a commission basis. We would train them and supply them with market collaterals. In turn they would give us leads of interested customers and Xenitis would follow the leads to generate business,” he added.

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