Syntel Inc, a US-based $100-million software player, will be floating a 100 per cent Indian subsidiary soon after its listing on the New York Stock Exchange.
According to company sources, the terms and size of the subsidiary will be decided after June when the New York listing is complete.
The Michigan-based firm, promoted by non-resident Indian Bharat Desai has a development centre at Mumbai and three in the US.
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It intends to expand its software development centres in India and has already procured 30,000 square feet of office property in Chennai.
It has also finalised a deal to procure another 20,000 square feet of office space in a suburb here.The development centre is investing around Rs 20 crore for expanding its base here.
Syntel India will also be sourcing software for AT& T's telecom project at Florida, and will be developing and maintaining software for Norfolk Southern, the US railroad major.
An identical project for Aramco in Saudi Arabia, is also being undertaken by Syntel India.
Company officials refused to divulge details regarding the billing procedure involved, or the total business volumes.
However, they confirmed that initial billing would be around $5 million. Syntel India has a complex set of billing procedures which ensures it bills its principal in the US for contracts which are handed to it .
According to Achut Godbole, managing director, Syntel India, "The turnover for 1995-96 in India was around Rs 30 crore and is expected to double by the end of the current financial year.
Syntel India has independently procured and implemented contracts in Malta and the Middle-East" he added.
Syntel India is primarily engaged in developing projects for Fortune 500 companies through Syntel Inc. It has 65-70 per cent projects on IBM mainframes and around 30-35 per cent on UNIX and the client/server.