IP SOFT (IPS), a Singapore-headquartered supply chain services major, is acquiring majority stake in the Chennai-based print and packaging company Scantrans. IPS, listed on Singapore Stock Exchange (SGX), is picking up 55% stake in Scantrans for over $5 million (Rs 20 crore).
IPS, with annualised revenue of over $130 million, is a significant player in the integrated supply chain services market across Asia-Pacific and counts high technology clients like Apple, Dell,HP and Intuit as its key accounts. Print and packaging and media replication figure prominently in its supply chain services play.
Set up in 1994, Scantrans has clients across sectors like pharma, electronics goods and hardware, FMCG and automobiles. It is projected to end the year with a turnover in excess of Rs 40 crore during the ongoing financial year. The customer list includes names like Cipla, Orchid, Flextronics, Motorola, Panasonic, Ford and BMW. Veda Corporate Advisors was advisor in this cross-border deal.
"We decided to fastrack our progress in the print and packaging segment through inorganic growth given the robust business growth in recent years. We hope to set up a facility up north as well given that several companies have been moving there to take advantage of the excise benefits offered by state governments," IP Soft MD Srihari Raghavan told ET. "By early next year we are hoping to pump investments into media replication business in India," he added.
The deal will help Scantrans leverage on IPS international client base in Indian market. Scantrans MD Ravi Krishnan said the company was targeting revenue of Rs 150 crore in the next three years, and was already beginning to work with IPS' international customers in India. Post-acquisition, the management structure at Scantrans will remain unchanged.