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PPP scooting up the value chain

Raja Simhan T.E.

Bharat Kumar

CHENNAI, Jan. 18

``SOFTWARE company _ in the project business _ planning to develop products _ will move up the value chain.'' That is the typical small-sized Indian software company for you: Lots of talent but little marketing power and hence comparatively little revenu e.

But one small firm has not only jumped straight on to the software product bandwagon but has used the power of the Internet to generate revenues. The result? It has a concrete revenue model to flaunt to venture capitalists that it hopes to source funds f rom, for expansion. The fact that it currently works under the proprietorship model makes the case even more interesting to study.

Speaking to Business Line, Mr. B. Shrinivas, one of the three promoters of Plans, Proposals and Projects (PPPIndia), said: ``Our firm has a working revenue model with its products on the Internet. PPPShar and netMailshar have together clocked about 3,500 downloads from users all over the world. A few lakh visitors to our Web site have checked out our product in the form of downloads for trial versions.''

The revenue for the past year was about Rs. 65 lakhs, with much of it coming in from customers who downloaded the software tools over the Internet. The company employs about 20 software developers.

It is now looking to expand its development strength in terms of infrastructure and manpower. According to Mr. Shrinivas, ``The said funds will come in two phases. We expect between Rs. 15 crores and Rs. 25 crores to be roped in, in about three or four m onths. We are targeting investments of Rs. 300 crores from venture capitalists and other such investors over the next five years.''

The funds will be used to expand the firm's infrastructure for software development and to set up marketing offices across the world. Mr. Shrinivas said: ``We believe that direct presence in various countries where our customers reside will help increase the installed base of our products.'' The firm has identified land near Chennai for setting up its expanded development facility.

However, PPP is not confining its hopes of roping in funds from investors alone. Said Mr. B. Parameshwar Babu, another of the promoters: ``We are in talks with network equipment manufacturers, Web hosting companies and Internet service providers, especia lly in the US and Singapore. If such partners can add value to our business while generating revenue for us, then we can still grow and sustain ourselves at the same time.''

``For instance, we currently have an offer from a small network equipment company that says it can sell 3,000 copies of our software per month if bundled with their product. We are evaluating the offer,'' he said.

Among bigger players, Corel and 3Com are in talks with PPP to explore possibilities. Such players are ready to purchase between 25,000 and 30,000 licences for the products initially, according to Mr. Babu.

The firm is also looking at setting up multiple joint ventures for marketing its products worldwide. Under such an agreement, PPP will continue to develop products while the joint venture will resell them.

Available for download at www.pppindia.com, PPPshar enables users to share one Internet account among multiple users, while netMailshar allows users to have independent e-mail accounts through one Internet connection. Another product is due for launch so on by the company: Mail Assistant. This product allows users to have their e-mail read to them orally.