The Chennai-based Software Solution Integrated Ltd (SSIL) has received Reserve Bank of India (RBI) clearance for turning its US operations into a wholly-owned subsidiary with a direct investment of $2,00,000.
So far, SSIL has invested $50,000 towards equity participation in its US operation Clientsoft Inc, California. The company has been incorporated in the US and has started functioning as a wholly-owned subsidiary.
According to SSIL chairman and CEO, Kalpathi S Suresh, Clientsoft Inc will focus on providing quality software professionals on a contractual basis to its clients in the USA. SSIL, which is involved in training software professionals, providing consultancy and knowledge-based services, also plans to expand its operations.
As a first step, the company's training division, is set to expand operation in India by establishing its own centres in Delhi, Mumbai and Ahmedabad with a view to turn into a major player in the IT training field on the likes of NIIT and Aptech. The company will embark on a franchising scheme in Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. Such franchisees are expected to come up in other parts of the country in the future. The company also plans to turn into an Internet service provider (ISP) this year to utilise its knowledge base on Internet and intranets. Its consulting division is currently evaluating the viability of setting up an ISP for the company. The consulting division is further planning to acquire another ERP (enterprise-wide resource planning) product to enhance its expertise in this field. The division expects to cash in on the growing need for SAP talent in India and abroad by placing skilled personnel for positions abroad through its subsidiary.
The `knowledge division' of the company plans to focus on promoting its software through CDROMs and web-based products.
Additional investments are also planned to reach markets worldwide through the Internet in future.
This division also plans to set up a `School of Technology and Management' (STM) to provide orientation to its own employees as well as those in its franchisees.
SSIL had a turnover of Rs 23.30 crore for the year ended June 30, 1997 compared to Rs 13.50 crore last period. It has made a profit after tax (PAT) of Rs 6.18 crore this year compared to Rs 4.84 crore in the previous corresponding period.
