|
Dr
Rama Rao:
A Practical Dreamer
Dr Rama Rao came to the US in 1979 to earn
his PhD in physics at the University of Illinois at Chicago,
because he felt he could "learn more here than in 15
years" in his native India. But he also had a dream of
starting his own high technology company, developing and manufacturing
laser products for industry and commercial use. That dream
is a reality, and he is now CEO of Excel Technology (OTC,
Holbrook).
Excel made news in March as the "little fish swallowing
the big fish," when it announced its intention to take
over Quantronix (OTC, Smith-town), a $29-M company. Excel's
reported sales in 1991 were $250,000. Dr Rao said he was drawn
to Quantronix for its manufacturing abilities and customer
base, while Quantronix could benefit by Excel's high technology
laser products and energetic leadership. Shareholders are
expected to approve the takeover Oct 1.
In 1986, Dr Rao tried and failed to get the backing of NYC
financial institutions because of his lack of experience,
but with the encouragement of his wife, Triveni, who also
has a PhD in physics, he pursued federal agencies, including
the Small Business Innovative Research Program and the National
Aeronautics and Space Administration, to get $1-M in start
up funding to develop his idea for a multiple-use laser product
that could be used for a variety of medical and other functions.
"Hospitals were paying $100,000 for just one of the laser
systems," Dr Rao said. Seeking funds to market the product,
Excel went public in May 1991, raising $4-M.
Excel is now ready to market a new product, a dental laser
that will reduce pain and is non-invasive, an important consideration
in AIDS prevention. The US market for the product is estimated
to exceed $100-M by 1995. Rao has developed a financial package
to make the $30,000-$45,000 product attractive to dentists.
When speaking of his "dream" and the future of
his company, Dr. Rao likens Excel to Computer Assoc. (NYSE,
Islandia), a $1.4-B company whose CEO Charles Wang also began
on a shoestring. Although Excel began in a garage, Dr Rao
hopes to steer its growth into a $100-M company in five years.
"I hope I have the courage and strength of Charles Wang."
His management style lies in finding the right experts,
with the "passion and belief and desire to be winners."
With the dental laser comes an expansion into commercial uses,
from the current scientific/industrial base. Dr. Rao anticipates
that each division of the new company will be headed by one
such expert, who will then be responsible for promoting that
division's products. "This is a third wave of management
generation, and they're not content to sit back and collect
bonuses. They want to be apart of the growth;" Dr Rao
said.
LI is Excel's base of operations because of the positive
atmosphere for high technology companies, with the proximity
to Grumman (NYSE, Bethpage), Brookhaven National Laboratory
(Upton) and SUNY Stony Brook, according to Dr Rao. The second
factor is the human one. LI has a technical workforce, one
that, in Dr Rao's view, has the loyalty and stability necessary
to build a high technology company. With the 200 Quantronix
employees and Excel's 12, he hopes to add another 200 to the
staff when the dental laser takes off. - ABB
|
