A company like Arrow acquiring eInfochips is a welcome step. The deal will showcase the world the kind of company that has grown out of Gujarat, says Vivek Ogra
The sale of eInfochips to US tech giant Arrow Electronics will bring more attention to Gujarat, said local IT players. It will showcase Gujarat's potential in technology sector, which may bring more players to the state and create jobs for local students in engineering colleges.
"A company like Arrow acquiring eInfochips is a welcome step. The deal will showcase the world the kind of company that has grown out of Gujarat. Not only it has unlocked value for the company, its promoters and its employees, it will also bring eyeballs of global technology companies to Gujarat. The move will also increase Gujarat's footprint in IT sector," said Vivek Ogra, chairman of GESIA IT Association, which represents companies in IT and ITeS sector in Gujarat.
Ogra said that the deal will only make eInfochips bigger by giving boost to its growth and will also encourage other companies who have created their own Intellectual Property (IP) as well as others to create IP as well as to encash upon it. "Such deals expedite the monetisation of IP. Companies small in size, although having developed IP, take time to monetize. However, a large company like Arrow, which has a better connect with users of IP, can do it in a matter of years and this will bring more business to Gujarat," said Ogra adding that more such deals will increase the presence of Multinational IT companies in Gujarat. In November 2017, another Ahmedabad-based IT company Motif Inc was sold to Nasdaq listed Teletech Holdings. Earlier, UK giant Sophos bought Network Security Company, Cyberoam and Sterlite Technologies took over Elitecore.
eInfochips founder Pratul Shroff said that the deal will make players realise the potential Gujarat has in creating niche technology companies, which can encourage more multinational tech companies to invest in Gujarat. A former employee of one of the local companies that have been acquired told DNA that such acquisition have dual benefits, one monetary and second career opportunities.
"Such niche companies in Gujarat offered ESOPs. At the time of their sale, they unlocked tremendous wealth for employees. Those who have remained with the companies, rather than moving to other destination, got a deal better than expected. Also in terms of career opportunities, such deals open avenues Indian companies cannot offer. The global management and scale is something, you don't get in local Indian companies," said a former employee.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "eInfochips")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}