Tuesday, May 15, 2007

M&A activities in Indian GIS industry

M&A activities in Indian GIS Industry seems to be on the rise..

1. A press release from Infotech, today, indicates that they have acquired majority stake in a Hyderabad based GIS start-up Geospace Integra. I had mentioned about Geospace Integra in one of my earlier post and was impressed to see the company growth since its inception about a year back. What's surprising is that the company put itself on the block within the first year of inception! What's even more surprising is that Infotech, one of the reasonably successful Indian GIS companies, in India felt the need to acquire another Indian company to grow it's India market !!! Read press release at..

-------------

Infotech Enterprises makes strategic investment to address geospatial market opportunities in India and Middle East

Infotech Enterprises Ltd on May 15, 2007 has announced its strategic move to address Geospatial business opportunities in India and the Middle East by taking majority stake in Hyderabad-based Geospatial Integrated Solution Pvt Ltd (Geospace Integra).The geospatial market in India and Middle East is estimated at Rs 1000 crore and is expected to see a 12% growth rate over the next five years. The India government's Open Map Policy and Survey of India's large-scale mapping initiatives are unlocking geospatial opportunities in several areas. These include land records; urban planning; environment, forestry and natural resources; utility infrastructure planning and management; and defence. Similarly, the rapid pace of infrastructure development in the Middle East has led to a growing demand for geospatial services in that region.The Company is a world leader in geospatial services, particularly for the telecom, utilities and government markets in North America, Europe and Australia. It also enjoys a significant presence in the telecom and utility segments in India. By investing in Geospace Integra and leveraging the combined entity's strengths, the Company moves into an even stronger position to address the high-growth geospatial markets in India and the Middle East.Under the terms of the agreement, the Company and Geospace Integra will consolidate their geospatial business in India and Middle East into a single entity led by Chandrasekhar Nori. Chandrasekhar Nori has over 25 years of experience in Remote Sensing and mapping industry in India. He is credited with engineering and development of photowriting and imaging technology for Indian defence industry. The new entity will operate as a subsidiary of the Company.BVR Mohan Reddy, the Company's Chairman and Managing Director commented: "As we continue to reinforce our leadership position in the global geospatial markets, India and the Middle East become increasingly strategic to our growth objectives. By leveraging the knowledge and experience of Geospace Integra, supported by Chandrasekhar Nori's leadership, we have a compelling value proposition for customers in these markets. We expect to achieve Rs 100 Crore revenue in the next 3 years from our India and Middle East business."
Source: Equity Bulls
---------

2. November 2006, I met with one of the founders of Manchitra Service who mentioned to me that they are existing out of business and and company will have new owners. There was no formal news about this transaction but a visit at the Manchitra website will indicate some changes in the management team.

3. A leading global street mapping company has closed (or is very close to finalizing) the deal to acquire a Pune based GIS data company to further it's Indian street data plans (I hope that there is a formal company release soon)

Although the size of these deals is not known and is not likely to be too big, it's a good pointer to the fact that GIS industry in Investing - in India based GIS business! As I said earlier, a bright future ahead!!

Manoj Misra

2 comments:

Anonymous said...

I searched for Geospace Integra investment press release and could not find it. Do you have a source for it?

Manoj Misra said...

http://www.equitybulls.com/admin/news2006/news_det.asp?id=12206

Visit Me Again!!!


All Points Blog