Growth Tech budgets $100m for buildout of Innovative Systems
Published:Wednesday | July 13, 2022 | 12:07 AM
To access this article in full please login or register today
Growth Tech, the company that now owns majority shares in electronic products and office supplies retailer Innovative Systems Limited, says it will be pouring $100 million into expanding the newly acquired business. At the top of Growth Tech’s...
Growth Tech, the company that now owns majority shares in electronic products and office supplies retailer Innovative Systems Limited, says it will be pouring $100 million into expanding the newly acquired business.
At the top of Growth Tech's agenda are plans to market Innovative Systems' product line more aggressively to attract more retail and business customers.
Innovative Systems trades in technology devices and systems, stationery and other office supplies, but sees the sale of office furniture as a future possibility for diversification, according to Executive Chairman Garth Walker.
“Since taking over the business in May, we have made a major push into the B2B space. We are very happy with the progress that we have made so far because, for the first time, we have started supplying the B2B market with stationery items,” Walker told the Financial Gleaner.
“Whether or not we decide to enter the office furniture side of the business, time will tell. We don't have that on the horizon for the near future, but the demand will dictate how soon we enter that space,” he added.
Innovative's goal is to grow revenues by 50 per cent within the first year of acquisition, largely from B2B, or business-to-business, sales. To date, the company has acquired little over 20 B2B clients across major sectors, such as financial and banking, manufacturing, technology, and business process outsourcing, through its newly formed B2B business unit.
Growth Tech will utilise a portion of the $100-million capex budget to expand Innovative Systems beyond Kingston.
The tech retailer, which has been in business for over 35 years, comprises two Innovative Superstores in Kingston, the second of which was opened during the pandemic. Walker wants to add another two or three stores outside of the capital, the locations for which are still to be determined.
In the meantime, the company will seek to leverage sales through its newly launched e-commerce website and an islandwide delivery service.
Walker told the Financial Gleaner that there is another deal in play for Innovative Systems, but declined to disclose the details, saying the agreement is now at a sensitive stage.
Innovative Systems was acquired by Growth Tech Group in May.