Source: Economic Times

Opting for Chandigarh as its global head-quarters and back-office, eSys, a Singapore based $2-billion IT component distribution major that manufactures 5,000 personal computers a month and supplies more than 25,000 PCs to leading international computer brands each year, will provide round-the-clock services from Chandigarh to 40 of its offices across the globe.

It confirms an investment of Rs. 30-crore that will be deployed for infrastructural development of the 6-acre campus it proposes to set up in Chandigarh, while offering logistics, reverse logistics (RMA), warehousing, invoicing, insurance transactions and transport tracking services.

Akashdeep Sharma, Director – eSys Technologies India confirming the firm’s future plans, says: “Our business to consumer (B to C) business will be handled out of Chandigarh, and it will provide specialised supply chain management services to all our international clients.” As well, as part of its Total Business Outsourcing (TBO) model, eSys will extend its supply chain management services to a number of Indian players, by running pilot projects with Indian corporate giants.

With the construction of eSys’ Chandigarh office scheduled to begin in two weeks time, mid-2008 will see more than 2,000-people employed, and by end-2009, the staff headcount could go up 3,000. In addition, to its Chandigarh plans, eSys will also be moving its PC manufacturing facility from Singapore to Nalagarh (Himachal Pradesh).

According to company officials, since the time PCs were exported to India, Singapore’s excise duty has gone up to 12%, leading to an increase in countervailing duty (CVD), which is the reason why eSys is setting up base in India,. Consequently, a 12-acre plot has already been acquired for the purpose, and construction is scheduled to begin end-August, along with PC line production.

With 23% of the global market share, eSys, the largest hard disk drive distribution firm will be setting up its new manufacturing plant with an initial investment outlay of Rs. 50-crore, escalating to Rs. 250-crore, within the next three years. As well, it plans to increase its installed capacity in India from 3,00,000-units to 3-million units per annum, even as, manufacturing personal computers, it brings an in-house hardware distribution chain for its international clients.

Business wise and big on business smarts, eSys knows relocation of its global headquarters to India, will help it save 80% on production costs, and see a 50% drop in its manufacturing costs.