L G Software India (LGSI), the wholly-owned local software arm of the $73-billion LG Group, is planning to design and develop Java-based software applications for consumer devices at its facility in Bangalore.
The move is a fallout of an international pact between the parent firms, L G Group and Sun Microsystems.
With LG and Sun, drawing up plans to expand local operations through their respective subsidiaries, there is synergy between the two companies to co-operate.
LGSI may in the long run use its Bangalore facility as an export base for developing software for its range of appliances like phones, Web TV, white goods, air conditioners etc. Data broadcasting would be another major segment. LGSI has a capital base of Rs 20 crore, the company has set a revenue target of Rs 24 crore during the current year and hopes to almost double it next year.
LGSI has, however, for the time being, decided to hold back plans to become an internet service provider. The company has adopted a wait-and-watch strategy and plans to scrutinise the development of the market over the next few years.
Sources in LG said the company can launch the services within a short time with support from group company, LG Internet.
LG has chalked out a plan to develop LGSI into one of the "largest and best" software development & services companies in the country by 2005 with 3000 plus skilled software professionals under its fold. LGSI will develop its unit at Bangalore for sourcing most of its non-Korean global software and information technology requirements.
The company will infuse funds for developing its domestic software operations in phases over the next few years, including setting up software development centres in Mumbai, Delhi and Hyderabad by the end of 1998.
Funding for the software projects in the country will be carried out in phases and is likely to increase once the group's other projects take off.
The LG Group has already planned to invest $600 million over the next few years in the country, of which, 289 million has been earmarked for consumer products and white goods division.
LGSI, which currently develops software for mobile phones, network computers and television, may in the future meet a substantial portion of the group's software requirements for its wide range of consumer electronics and white goods.
As per LG's global plan, Bangalore will be one of the three major software development centres(SDC) which will come up in the US and Poland.
