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64 employees turn crorepati in eInfochips deal

571 employees to encash ESOPs worth Rs 300 crore

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The sale of a company to another is usually greeted with skepticism and concerns by employees of the takeover target, but not in this case. As many as 571 employees of Ahmedabad-based product engineering service company eInfochips have become crorepatis overnight following acquisition of the company by US-based Arrow Electronics. Insiders said that these employees will encash Employee Stock Option Plans (ESOPs) to the tune of Rs 300 crore that they received over the years from eInfochips.

"Eight of our employees will get more than Rs 10 crores each, while 56 others will get between Rs 1-10 crores each. It is a matter of great satisfaction for us that our employees are getting the due benefits," the company's founder and CEO Pratul Shroff, told DNA, after the deal was formally announced on Tuesday.

eInfochips has not disclosed the size of the deal because of regulatory compliance of NYSE-listed Arrow Electronics, which is ranked 118 in the list of Fortune 500 companies. However, market sources pegged the deal size at Rs 1,700-1,800 crore.

Set up in 1994 in Ahmedabad, eInfochips is a product engineering and software R&D services company, with over 500 product developments, and over 40 million deployments in 140 countries.

It deals in multiple domains, including aerospace & defence, automotive, consumer electronics and home and industrial automation among others. Close to 60 per cent of its revenues come from Fortune 500 companies.

eInfochips has development centres in Ahmedabad, Pune, Bengaluru, and Noida, of which close to 70 per cent staff strength is in Ahmedabad.

"I started giving ESOPs to employees in Ahmedabad when hardly any company in Bengaluru had started the scheme. It is nice to see employees making money. Also, 17 companies in Ahmedabad are founded by former employees of eInfochips. I am happy with this wealth creation," Shroff said further.

"It is a matter of pride that we created such a niche company from Ahmedabad. Most of our employees are recruited directly from local engineering colleges. People still don't believe that we are an Ahmedabad-based company," Shroff added.

The deal with Arrow Electronics will be a win-win situation for both companies as they will be able to club their product-service offerings to the clients. eInfochips has Intellectual Properties (IP), which will be speedily and efficiently monetised as Arrow Electronics has been dealing with these clients for years now.

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