Fortune India :
31st May 2002

The magic hand of Mr.R.Karthik has converted an insignificant Indore - based company arraigned before BIFR into a force to be reckoned with in the IT field. Eonour technologies have now emerged as an admirable provider of total solutions with a focus on enterprise application integration (EAI) and supply chain management (SCM).

At a time when the information technology companies in general have hit a rough patch , a relatively small and little known company styled as eonour technologies (ETL) is making rapid strides. Bought from a junkyard in Indore and shifted to Chennai by an enthusiastic and ambitious young man, Mr.R.Karthik, this BIFR (Board of Industrial and Financial Reconstruction) company has started making waves by emerging as an admirable provider of the total solutions with a focus enterprise application integration (EAI) and supply chain management (SCM).

The company, which has already acquired ISO 9001 certification, can today boast of prestigious clients like United Parcel Service of Singapore, Hyundai Motors, LT, Hero Honda Motors, Kinetic Engineering, Amara Raja Batteries, Guangdong Electronics Impex Corp. China, Penta Daewha Auto Parts, and Legend Electronics , Hong Kong, among others.

On the financial front also , the company has started doing very well. In the fiscal 2002, while most of the IT companies showed a sharp deceleration in business and earnings, ETL put up a heart - warning show. With the total sales expanding from Rs 47.37 crore in 2001-01 to Rs.65.46 crore , an increase of 38 per cent , the gross profit rose from Rs. 17.21 crore to Rs.21.08 crore. As depreciation claimed Rs.4.08 crore, more than double of previous year's Rs 2 crore , and the company had to provide for taxation at Rs. 4 lakh ( nil), the net profit worked out at Rs. 16.95 crore compared to Rs.15.20 crore in the previous year, a moderate improvement of 11.49 per cent.

A highly satisafied Mr.Karthik attributes the success of ETL to the managements growth strategy, which characterises the company's parternerships and strategic alliances with renowned frims in their respective fields, which have enabled the company to offer total one source solutions. These include Euro RSCG (online branding and web communication solutions), Acer (web servers and other hardware), Precon technology , UK, dotcom ERP Singapore, Komputer Wisman of Brunei and Akela of Romania ( Marketing in these reigons), eBiz Exec Australia (marketing in Australia and New Zealand ), Birla Institue of Scientific Research ( bioinformatics).

Another secret of success of eonour is Mr.R.Karthik's successful drive for moving up the value chain. Says the young CEO " we realised that with recessionary trends in the economy , the way to retain and maintain the exixsting customers and also to attract new ones is to offer value added products that offer a greater return on investment on investment.The realisationhas transalated into eonour gaining expertise in SCM products."SCM involves coordinating and integrating withing and among companies, the flow of materials, information and finances as they move form supplier to manufacturer to wholesaler , to retailer and ultimately to customer.Major companies are investing in SCM even in recession , as streamlining of purchases and distribution saves them huge costs.

Mr. Karthik is hughly optimistic about Eonour's future outlook."As of today, our Order book is strong with orders worth Rs.69 crore on hand,' he reveals and adds, " and this figure does not factor in the inorganic growth from acquisition."

However , the young CEO is not resting on his laurels."this is just the beginning . Now the company has entered into two new fields, viz, embedded technology and bio informatics. We plan to develop embedded software in alliance with Advanced Training Institute for Information Technology. We have also tied up with line digital, South korea,, for providing solutions for mobile devices through embedded technologies."

As far as bioinformatics is concerned, eonour has entered into an alliance with prestigious institutions like Birla Institute of Scientific Research, Jaipur, and University of Pune. It is developing comphrehensive software tools which will help analysing and testing in the field of biotechnology.

Having laid down a solid foundation, Mr. Karthik is now exploring avenues for speeding up the growth by acquisitions and IPR's." We are carving out an M&A strategy that will enable the management to expand it's business activities in a harmonious way," he adds.

My ultimate aim is to emerge as a global player in the technology arena. In fact , it is with this thinking in mind that we have changed the name of the company from eonour software to eonour technologies," maintains Mr. Karthik with dreams in his eyes.


For further details please contact:info@eonour.com