Transcon Infotech plans Rs 50 cr US arm

The Mumbai-based software company Transcon Research and Infotech Ltd (TRIL), a Bombay Stock Exchange (BSE)-listed entity, has decided to set up a wholly owned subsidiary in the US with an investment of around Rs 50 crore.

The company, accredited with ISO 9002 by Bureau of Indian Standard, received necessary permission from the Reserve Bank of India (RBI) for investing in US, said a company release on Monday.

TRIL which is mainly into computer-aided designing (CAD) and has a large number of clients in Gujarat and Maharashtra, has been focused on the software development and CAD data conversion business while its value-added services include CAD conversion, 2D, 3D design and drafting and onsite consulting including portal development.

"The company has finalised a plan to acquire 7,000 square feet of new premises in Maharashtra for new development centre which will be used for development of e-commerce related applications and portals and will also develop software for the clients of the proposed subsidiary in the US. The initial investment for the new centre will be Rs 20 crore and we are planning to add 700 new personnel in the next five years while we are looking aggressively on the US market," mentioned the release.

"Over the last few years, the company has executed a large number of software development and CAD conversion projects for its global clientele including projects of structural drawing conversion of RSC Commercial Services, Germany, ship project drawing conversion by CAD-CAM Services Inc, US and also architechtural drawing conversion for Caldyne System, US. The company recently did a project for Western Railways called 'System Maps,' said a company official.

TRIL was incorporated in 1994 in Mumbai with focus on image analysis and multi-media system, restructured its business operations to software development and CAD/GIS data conversion business.

"The company feels that the US is the biggest market for software development and 80 per cent of the business is generated from there, so there is a need for this new subsidiary. The second biggest market for us is Europe but there are problems regarding language there. So the need of the hour for now is to strengthen the US operations," said the official.