News By Tag
News By Location
Technology Giant Celframe to enter Natural Resources Sector with Billions
Celframe the New York based technology giant who ended another year with its huge surge in profits is now looking for new sectors to invest their huge war chest of cash.
Celframe’s ever-increasing cash hoard was touched upon briefly during Celframe’s earning conference via videocon yesterday. When asked if Celframe was pursuing a different investment strategy vis-a-vis its cash holdings, Celframe President Arun Pudur responded. “We want to maintain flexibility and agility with our growth. I think everyone who knows us knows that we don’t burn cash that much compared to most other Technology companies. We don’t want to do things that will jeopardise the company, and will continue to invest conservatively like we have done all these years. We’ve done a very good job in an extremely difficult market and have done things in Celframe’s best interest. We acquired a few companies, acquired intellectual property, invested in new emerging products including our cloud security and now moving our product line into cloud. What we’re doing with cash, the cash we do spend, we’re doing an extremely good job and are very frugal. Now we have decided that we have more cash than what is needed for our day to day operations and have decided to enter the natural resources sector and invest on environmentally sustainable technologies to extract resources with minimal impact to nature and also the community”.
And while no one can dispute Celframe’s frugality, Celframe went on an investing spree last 3-4 years acquiring small and medium enterprises who have immense potential to grow and have in turn absorbed those technologies to make their billions.
Arun Pudur continued, “I’m not sentimental about holding on to the cash. We will continually ask ourselves what’s in Celframe’s best interest and always do what is needed to achieve that. It’s a topic for the board on an on-going basis and we will continue to discuss it."
Promptly squashing that notion of a query raised by a business analyst that Celframe was reluctant to initiate an IPO because it might indicate its ability to innovate is sloping downward, Arun says “I think that anyone looking at us and our track record would not come to any conclusion that we’re waving a white flag on technology innovation. We’ve had a series of unbelievable products, the best products of the world according to our customers. We’ve got a pipeline that’s unbelievable. Our focus is now to create more value for our cash. You must note that all this cash was privately earned without a single dollar of loans or public money."
Still, Celframe in typical fashion said that the perception that accompanies an IPO wouldn’t prevent it from listing its company shares if that was deemed to be in the company’s best interest. For now it can only warn Rio-Tinto, Anglo-American, Glencore and all other mining giants to watch out for this new entry who has bought companies like Microsoft & its likes to their keens and will do the same in the resources venture.
# # #
Celframe is a Global IT major which defines, designs and delivers IT-enabled business Products and solutions that help Global companies win in a flat world.