• PAGE ONE
• INDEX
• HOME

Vakrangee plans to set up jt venture in US

Our Bureau

MUMBAI, March 8

VAKRANGEE Softwares Ltd is planning to set up a joint venture company Indus Web Services Inc. in the US.

Vakrangee would hold 75 per cent of the initial paid-up capital of $1 million while ``six US-professionals'' would hold the rest in the form of sweat equity in the new company, said Mr. Dinesh Nandwana, Managing Director of Vakrangee.

The new company would get itself listed on Nasdaq within a year's time, said Mr. Nandwana. Indus Web was expected to generate revenues of $7 millions in its first year of operation alone.

The New York-based company will be completely concerned with Web development, business-to-business applications and high end solutions for clients in the US. A large part of its business would be outsourced from Vakrangee in India, Mr. Nandwana said.

Vakrangee also plans to open marketing offices in Singapore, Jakarta and Sydney soon and go in for expansion of its infrastructure in India this April. The company had a turnover of Rs. 9 crores for the nine months ended December 31, 1999 and hopes to sh ow business worth Rs. 9 crores in its fourth quarter, due to its system of accounting on approval basis where bills were accounted for only when received, said Mr. Nandwana.

Tata Finance Ltd holds a 7.5 per cent stake in Vakrangee Softwares, with the promoters holding 36 per cent. The rest is with financial institutions and companies and with the public.