Allied Digital Services : On An Acquisition Spree

Allied Digital Services went ahead with its IPO plans in July 2007 with an
offer of 45,22,435 equity shares for Rs 10 each. It also acquired 51 percent
stake in Bengaluru-based Digicomp Complete Solutions in March 2008. These
initiatives saw the company post a turnover of Rs 297 crore in 2007-08, up from
Rs 156 crore the previous year.

It also tied up with media major Bennett Coleman & Co Ltd where the latter
picked a five percent stake in Allied company in lieu of advertising space
across their various brands. This marketing move helped Allied in creating a
strong national brand and in getting incremental business as well.

At the start of last fiscal, Allied tied up with the US-based Echelon for
intelligent building management solutions and also adapted Ciscos' CCRE to cater
to the real-estate business.

This year, Allied also acquired 81 percent stake in the US-based remote
management services provider EnPointe Global Services, for an equity valuation
of $30 million in a cash and equity-swap deal. EnPointe Global Services, with
revenues over $340 million, is a carved out subsidiary of EnPointe Technologies
Inc.

Aiming to reach out to global customers, Allied started liasoning offices in
Sydney and New Jersey. And to make its processes more systematic, it decided to
go for a SAP implementation internally as it increased its manpower strength by
56 percent. The company bagged two major awards last fiscal. It was judged as
the 'Most Successful Solution Provider' by DQ Channels and was also given the
'Key Strategic Win —West' award by Novell at its annual partner meet.

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Profile
CEO: Bimal Raj Startup-year: 1995 Employees: 1,500 Address: Third Floor, Kimatrai Building, 77/79, Maharishi Karve Marg, Marine Lines, Mumbai - 400002 Tel: 022-22002020 Website:www.alliedindia.com SILVER CLUB RANK (2006-07): 8

Last year, Allied launched its Remote Management Services Center (STPI unit)
consisting of network operation center and information security operation center
at Navi Mumbai. With this setup it intends to address the international markets
for these services with highly competitive prices by leveraging the lower cost
of technical manpower in India. This fiscal, it will expand to

35,000 sq ft corporate office in Mumbai and enhance its warehousing space across
12 locations.