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Cerebra mulls JV with Singapore IT firm

Fakir Chand in Bangalore

Cerebra Integrated Technologies Ltd, one of the leading Bangalore-based one-stop total IT solutions providers, is planning to set up a joint venture in collaboration with Day Software Technology Pte Ltd in Singapore for manufacturing hardware products and developing software solutions.

According to a memorandum of agreement signed by the two companies here on Wednesday, the joint venture is likely to go on stream next year.

Officials of both the companies, however, refused to divulge details of the proposed investments, controlling stakes, and the profile of products as plans are still on the drawing board.

The Singapore-based Day Software has core expertise in the area of Internet home banking and Internet home shopping, besides proprietary licensed legal information systems and accounting products.

"The MoA is aimed at providing software and hardware products for the Asia-Pacific region, which is set to witness a boom in technology spending in the coming years," declared K L David Tai, CEO of Day Software.

As its first foray in the Asian region outside India, Cerebra will be targeting the APAC region to market aggressively its array of hardware products being manufactured at its systems integrated division facility in Bangalore.

Its range of products include servers, desktops, notebooks, rack mounted servers, and high-end 8-way Intel Pentium Xeon-based servers.

"Day Software will provide a platform for Cerebra to tap the huge potential of the APAC market for its products, and take up projects on turn-key basis through the joint venture for offering total IT solutions, including software to our Asian customers," David affirmed.

The two-year-old Day Software with a turnover of Singapore dollar 7.5 million already boasts of a customer base of 370 companies in the region, with its services and products constituting major sources of revenue streams.

According to Cerebra chairman and managing director V Ranganathan, the company plans to have additional manufacturing facility at Singapore in the form of the proposed JV to leverage its strength in the hardware segment.

"We would like to cash in on the growing customer base of Day Software by developing those technologies and products which will address the Internet market. Our software division will develop applications for the hardware products for offering integrated solutions to our APAC customers," Ranganathan stated.

Cerebra's surface mounted technology division, which began operations early this year, manufactures motherboards, network interface cards, AGP cards, and memory modules, in addition to integration of UPS, hubs, and switches.

"Our software services are in the domain of eCRM, healthcare, banking & finance, and WAP. We will be developing applications for Day Software products that address the Internet home-baking and home-shopping," said Cerebra's CEO for software division Sriram Mahalingam.

Cerebra has recently announced of its foray into the European market with offices at Amsterdam in the Netherlands and another at Frankfurt in Germany to identify new projects, tie-ups, and setting up of subsidiaries at a later stage.

"We are in the process of tying up with a UK-based software major for joint collaboration in developing products and solutions in the convergence area," Ranganathan claimed, but did not disclose the name of the UK IT company.

According to the unaudited results of the public listed company, the profit after tax for the fiscal 2000-01 is around Rs 30.50 million on a total revenue of Rs 520 million as against Rs 14.20 million and Rs 300 million, respectively, during the corresponding period of 1999-2000.

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