The Employees of Sai Info system seems to be in a shock when they learned that theirChairman and Managing Director Sunil Kakkad went missing after doing a scam of Rs1,000 crore.
The traces of him are still not yet discovered and most of the employees even feel that it was preplanned as the company was going through financial crunch.
According to sources close to the company, he has left the Ahmedabad based Rs 2000 crore Sai InfoSystems in the lurch and is likely to be in the United States of America.
Alok Gupta, ISODA, President says, “I do not know much about the incident but yesterday only I have come to know that it was a relatively large company but I believe that these type of companies are basically paper tigers. They doesn’t have margin to sustain in the market.”
Pavan Sanghvi, CEO, Technofirm has had done business in past with SIS. He opines, “I was involved in business with him but there are only few transactions that I have done with SIS. From the year 2000 we were supplying products to them and I stopped the business with SIS in 2008 because Kakkad always wanted to work with the large distributors. We came out of transactions from 2008 onwards. However, during the course of business any transactions done were completely transparent. But from the industry people I have heard number of times that he was creating problems with other dealers. He use to do major transactions from National distributors then partners’ community.”
Manish Mangal, Branch Manager, Radington, one of the major business associates with SIS informs, “No doubt that the company was going through the financial crunch and this was reflected in the business deals. But all what has happened has done suddenly. There’s no clarity and we never thought of this extreme step.”
As SIS organization and its employees come to terms with the fact that their promoter is now missing for over a week, he is likely to be in the US where most of his family members are based.
It may be recalled that Sunil Kakkad who established Rs 2000 crore turnover business Sai Info Sytem (SIS), was born on May 10, 1971, in the house of a well-known doctor of Tharad Dr Surendra Kakkad, he was brought up in north Gujarat.
Kakkad’s family is now settled in the US. Kakkad, the youngest son in the family, after studying engineering from PSGVP Mandals College of Engineering at Shahada in Maharashtra in 1992, founded Sai InfoSystem (SIS) with an investment of Rs70,000 in partnership with Vijay Mandora in Ahmedabad in April 1992.
As a strategy, in the initial years of operations, Kakkad started offering IT solutions, including PCs and hardware to companies operating from small offices or home. Having started with just four people, SIS soon diversified into manufacturing hardware, software development system integration and telecom services.
Eyeing the burgeoning opportunities in the retail segment, Kakkad forayed into retail business of computer peripherals as well under the brand name of eMall. And Kakkad was more than interested in entering the capital market. Before foraying into the telecom sector, SIS had planned to raise funds for expanding its retail chain of computer devices and IT solution across the country.
Interestingly, since the year 2008, Kakkad was planning to launch IPO. Initially he wanted to raise Rs200 crore. However, due to unfavorable market conditions in 2010, SIS shelved its IPO plans.
In early 2009, SIS entered the telecom sector and started manufacturing IP phones. Around the same time, SIS also aligned itself with BSNL, for video-telephony. Kakkad’s tale or meteoric rise and fall can only be described with his desire to achieve greater results with minimum effort and this is what takes big or small organizations down.