Genex Infosys to diversify into e-commerce services

Genex Infosys Limited, a leading IT firm in the country, is going to set up a new company to diversify into the fast-growing e-commerce services business space, seeing tremendous potential in this sector.

The new company, Loginex Limited, will provide services focusing on digitising the logistics and supply chain management eco-system of the country.

Genex Infosys Ltd took the decision to set up the new company in its board of directors' meeting on 31 August.

Loginex Ltd aims to win the trust of global brands of repute for managing their logistics services.

Genex Infosys will hold 75% share and a Bangladeshi IT expert in the UK will hold a 25% share of the new company.

IT experts recruited by both the entrepreneurs will provide app-based services, like tracking products from warehouses to customers and other logistic services, for e-commerce businesses.

Loginex Ltd's paid-up capital will be Tk10 lakh and it is expected to start operations by January 2022.

The new firm of Genex Infosys will generate approximate revenue of Tk15 crore yearly, on average.

Jewel Rashed Sarker, company secretary of Genex Infosys told The Business Standard, "During the pandemic, the demand for digitising logistics and supply chain management services increased and the company saw a huge potential in this sector."

"As the services are IT-based and app-based, the investment needed is not a lot like for other corporations, but returns will be high. We expect around Tk15 crore in revenues from the new firm, annually," he said.

Earlier in May this year, Genex Infosys entered the telecom infrastructure business in a joint venture. 

Genex Infrastructure Limited is the new entity of that company, where Genex Infosys Limited will hold 75% equity.

Genex Infosys was listed on the stock exchanges in 2019. 

The company is engaged in call center services, website development, marketing of software products, and providing maintenance and support services to both domestic and international clients.

Genex Infosys' paid-up capital is Tk103.22 crore.

In the first nine months of 2020-2021, the company's net revenue went down 4.89% to Tk84.48 crore, from Tk88.83cr for the same time frame in the previous year.

Its profits rose to Tk31.62 crore from Tk31.06 crore in the July-March period of FY20.

In FY20, its revenue increased 9.78% to Tk103.66 crore, from Tk94.33 crore in the previous year.

Its net profits rose 63.87% compared to the previous year, to Tk32.1 crore from Tk19.6 crore.