Rs 77 Crore Expansion By Systems America

Internet technology company Systems America has charted out an ambitious expansion plan of Rs 77 crore, part of which _ about Rs 55 crore _ will be raised through an initial public offering.

Moreover, the company has also earmarked Rs 25 crore for mergers with companies in the WAP, CRM and eCRM arena in the domestic market. Earlier, it had wanted to acquire companies in the foreign market.

"With the focus of development shifting to India, we are also shifting the focus of acquisition to India," said Adesh Kumar Tyagi, chairman and chief executive officer of Systems America. It is also learnt that the firm is in the process of appointing agencies to help it identify companies to be acquired.

 

The company is also in the process of raising funds in the form of debts and is in talks with various financial institutions for the purpose. "We are in the process of raising some funds in the form of debts," he said.

In addition, the company is also finalising a joint venture with Rockwell to out-source development work. "We have already signed the memorandum of understanding with Rockwell and the joint venture will be finalised soon," Tyagi said.

As a part of its thrust in the Internet space, the company will soon launch an aerospace and defence business-to-business online exchange.

it also plans to launch an automobile online exchange, which will provide services outside India.

As part of its India-centric model, the company has now shifted its development and support service centre to India.

"It is true that we have an India-centric model for development. But we do still have a strong marketing team and on-sight development team in the US," Tyagi said.

In addition, the company is also planning to expand its existing facilities as well as set up new sales offices in various parts. "We are opening new offices in Australia and Japan this year," he pointed out.

Systems America has also tied up with IBI Inc of the US for e-business solutions to corporates. Its e-innovations centre in Bangalore caters to the needs of various portals that the company has planned.

Besides, the e-innovations centre at the Software Technology Park here provides professional e-business services, including strategy consulting, systems architecture, application and technology infrastructure for companies on a turn-key basis. According to Tyagi, the company will soon offer

call centre services in the Indian market.