Klg Systel Merges E-Com Subsidiary

The board of directors of KLG Systel has approved the scheme of amalgamation of its wholly owned subsidiary, Jaldi E Commerce, with the company.

Last year, KLG Systel, a CAD/CAE firm, acquired a 99.99 per cent stake in Jaldi E Commerce. Jaldi operates a comprehensive e-tailing website, jaldi.com.

The acquisition follows the company's decision to diversify into new areas including e-commerce and supply chain source network optimisation.

The decision to acquire an e-commerce firm was mainly due to CAD/CAE business of KLG Systel showing a decline in orders.

Jaldi has also recently entered into strategic tie-ups with some of the leading horizontal portals. During the calendar year 2002, it has also diversified into e-CRM and content creation services for international clients.

KLG Systel has created two business-to-business portals called Epcasia.com and Epcplanet.com. Jaldi had recently acquired the assets of the website, window2shop.com, along with the brand name.

The company is also planning to bring down costs and increase alternate sources of revenue.

According to an official communique to the Bombay Stock Exchange, KLG Systel has also established its branch office at the Dubai Internet City to market its services in the Middle East.

The board of directors has decided to extend the current financial period of KLG Systel from December 31, 2001, to March 31, 2002, making the current financial period of 15 months and thereafter next financial periods would end on March 31 every year.