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K Baburajan
Bangalore, Sept 16: The US-based Phoenix Home Life Mutual Insurance Company and Command Systems Inc have parted ways in India. The $2.6 billion Phoenix Home Life Mutual Insurance Company has diluted its 49 per cent stake in Command International Software, a joint venture subsidiary with Command Systems in the country.
The decision to part ways is expected to enhance the existing identity of both their subsidiary firms here. However, Phoenix will continue its operations through its fully-owned outfit in the country. It is understood that while disinvesting the stake in the Indian venture, Phoenix has picked up some equity holding in Command Systems in the US. The exact quantum of the Phoenix stake in Command Systems is not available.
As per the new strategy, both the Indian subsidiary companies -- Command International Software and Phoenix Global Solutions India -- will operate under different heads. While Sathish Bangalore will be responsible for Phoenix Global, an export-oriented unit under the softwaretechnology park (STP) scheme in India, Command Systems has appointed HR Mohankumar as the new country CEO.
Command International has been operating from its Infantry Road office in Bangalore while Phoenix Global has opened a new facility in Basavangudi. Earlier, the operations of both the companies in India were under a single head and so also under a single roof.
``We had acquired a 35,000 sq feet building in Basavangudi and it is expected to house around 300 software professionals by 1999. The existing number of software engineers is about 100,'' said sources in Phoenix Global Solutions. However, Sathish Bangalore, CEO of the company, refused to comment on the issue.
The company has pumped in around Rs 15 crore to set up the new premises. It also has plans to hike its equity capital from the present $1 million to $2 million. Phoenix Global has already sought necessary clearances from the Reserve Bank of India in this regard.
Phoenix is currently holding talks with leading software companies in theUS to deliver services on insurance software. It had signed a memorandum of understanding with IBM's insurance division to provide software on insurance.
In order to cop up with the emerging trends, the company also plans to diversify into Internet services and multimedia-related activities aimed at the insurance firms. Phoenix has already made a headway in Internet services in US markets.
Phoenix has also initiated a new programme, Building Bridges, which promotes the importance of estate planning and focuses on helping policy holders preserve wealth as it passes from one generation to the next.
Command International Software, which has received RBI clearance for a wholly-owned outfit in India, provides software consulting and management to address systems problems brought on by the century change.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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