Calcutta, Feb. 13: The West Bengal Electronics Industry Development Corporation Limited (WBEIDC), popularly known as Webel, has sent a proposal to the state's IT department to merge all its seven subsidiaries into a single entity.
According to sources, Webel had appointed consulting firm Deloitte India about six months ago to study the viability of the proposal.
"The firm recommended the amalgamation of all the companies and Webel's board of directors approved it in December. The decision will prove beneficial for Webel," a source said.
The seven companies under Webel are Webel Communication Industries Limited (Webcom), Webel Consumer Electronics Limited, Webel Technology Limited (WTL), Webel Informatics Limited (WIL), Webel Mediatronics Limited (WML), Webel Electronics Communications Limited (WECS) and Webel Venture Capital Limited (WVCL).
"Most of these companies were providing software solutions, digital networking and were into more or less similar businesses. While some are making profits, others are either suffering loss or are inoperative. Hence, the merger would bring in operational convenience to the company," said a source.
Webcom makes push-button telephones, while Webel Consumer Electronics used to manufacture television sets and audio digital video discs (DVD). The latter is non-functional at present, say company insiders.
WTL offers software services to several central and state government departments in Bengal and other states. WIL conducts diploma and certificate courses in software, hardware, networking and multimedia and a host of IT courses for beginners.
WML is engaged in the development, manufacturing, supply and turn-key project execution in the areas of studio and broadcasting system, community radio system, intelligent traffic control system, strategic electronics and IT applications and devices for people with disabilities.
Along with Webcom, WECS, which had a microprocessor-based product line serving defence and railways, has become obsolete.
WVCL is engaged in making investments primarily in equity and related instruments in entities engaged in the electronics, telecom and IT industries which also include networking, data communication, software development, multimedia, internet services and value added telecommunication services.
"The state IT department is expected to approve Webel's proposal soon and the merger is expected to materialise within the next two months. However, WTL might be left out of it as it is performing fairly well," said a source close to the development.
At present, WBEIDC, the mother company, employs over 100 permanent and contractual workers, while its seven subsidiaries engage around 200.
