Chirag Computer may take controlling stake in Ontrack

Desktop and laptop manufacturer, R P Group, may pick up an additional 5% stake in Ontrack Systems through an open offer to raise its stake to a controlling 51%.

The company, which retails under the brand name Chirag across India, is in the process of taking over 46% in Ontrack through R P Infosystems, the group’s flagship company, through an allotment of preferential shares.

Kaustav Ray, chairman, RP Group, told DNA that the group is open to more acquisitions.

The group is targeting a turnover of Rs 1,200 crore, riding on the Rs 5,000-crore ‘dumb terminals’ market this fiscal.

The company is banking on government contracts and corporate orders to boost its sales in this space. Dumb terminals are hooked on to a mother server and usually used in large establishments such as offices, banks, railways etc.

The company clocked a turnover of over Rs 900 crore last fiscal. Ray said, “We are exploring the dumb terminal market in a big way. We expect to bag orders worth Rs 200 crore in the current fiscal in this segment alone, which is growing at over 60%.”

Chirag has a pan-India presence. In a market comprising 75 lakh PC units in 2009-10, Chirag’s share was around five lakh units.

“Laptop movements have been slow, but India has 10 billion internet users and the SEC B, C and D towns have grown faster. We have a strong presence in these locations,” Ray said.

Chirag laptops are priced at around Rs 17,000 and its PCs at about Rs 12,000.