Arvind’s Telecom Unit to Acquire Enkay Tech
Mumbai: Syntel Telecom, the telecommunications unit of Arvind, has agreed to buy enterprise unified communications provider Enkay Technologies as the 80-year-old textiles and fabrics major moves to diversify and strengthen its telecommunication and engineering segment.
Arvind has signed a definitive agreement to buy Enkay, which is the market leader in India in the unified communication segment, multiple sources with direct knowledge of the matter told ET. The transaction is expected to be announced as early as this week.
Arvind and Enkay declined to comment. Mumbai-based investment bank Singhi Advisors was the sole advisor and process runner for the transaction, sources said.
Syntel was founded in 1989. Arvind is the flagship company of Ahmedabadbased Lalbhai Group, one of India’s largest textiles and fabrics companies. Arvind owns brands such as Flying Machine, Newport and Excalibur and has licensed international brands such as Arrow and Tommy Hilfiger and retails it through its nationwide network.
The transaction will be a major step in Arvind’s diversification into other businesses, sources said.
Enkay holds the largest market share in the enterprise segment of unified communications and collaboration solutions business and is currently the segment leader and preferred a business partner in the Indian hospitality segment.
With a revenue of over ₹ 100 crore and a gross margin of around 25%, the 25-yearold Mumbai-based company has a pan-India distribution and service-cum-support infrastructure with eight branch offices serving both direct enterprise customers and channel partners across India.
Syntel and Enkay are the largest peers in the unified communications and collaboration solutions, both retail and enterprise segments in India, with Syntel addressing the markets through its large distribution channel.
Deal will enable Arvind to diversify its business and strengthen its telecom and engineering segment