Mirc to venture into software development

agencyfaqs! News Bureau

Mumbai

Mirc Electronics, makers of the Onida brand of television sets, is ready jump on to the software development bandwagon. To this end, the company is working at setting up a 100 per cent subsidiary which it plans to spin off in the next two months. Gulu Mirchandani, chairman of Mirc, told reporters that the initial investment in the venture will be something between Rs 3 and 5 crore. He also said that Onida has completed its in house ERP project and now its plans to do it for other companies."

Mirc plans to go solo on this project - at least for the time being. The chairman told reporters that Mirc has no plans to either acquire or tie-up with any software company. Since the project is still at an initial stage of development, that may not be necessary either. However, the company might have to consider that option at a later date.

Several analysts are of the view that the company might have a revaluation in its stock price with the new venture. In any case, Onida is one of the dominant players in the black and white television sets segment in the rural markets. The last one year has seen the company recovering lost ground ion a big way.

Its market share in the color television sets segment has improved from 9 to 13 per cent. The brand also has a 13 per cent market share of the rural B&W TV sets market. Analysts feel that the company has a strong potential for growth, as it is one of the few consumer durables company that has displayed remarkable innovativeness in its product development. Mirc has made also made a big breakthrough in the export market and has become a leading brand in the Persian Gulf.

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