Datamatics to invest $5-10 mn in JV

Datamatics Ltd will invest $5-10 million in the United States-based White Label Inc, a joint venture formed with the Mariner group of US to provide consultancy for IT global sourcing strategies.

Datamatics would hold 51 per cent stake in White Label, while Mariner group would invest $3-5 million in the joint venture.

"We expect revenues of $10-15 million in the first year of JV's operations," Datamatics Ltd managing director Rahul Kanodia told PTI in Mumbai on Thursday.

Datamatics signed the joint venture agreement on September 9, 2003, and expects 70 per cent of business to accrue to Indian entity, Kanodia said.

White Label Inc would focus on high level strategic consulting and rope in chief executive level professionals to assist clients in designing global strategies, he said.

"Initially, about five professionals will be part of operations and at peak of business, over 15 CEO level persons will be involved in consultancy work," he said.

Prior to signing the JV pact, Datamatics has already executed two projects through White Label Inc for the Western Union and Carnival Cruises, he said.