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Thursday, July 9, 1998

BPL spins off its systems subsidiary to group firm 

K Baburajan  
Bangalore, July 8: BPL Ltd has spun off its US-based subsisiary BPL Systems Ltd to group company BPL Telecom Ltd. BPL Systems Ltd will be the marketing arm of BPL Telecom which is venturing into overseas markets with its information technology business division.

Senior officials in BPL Telecom Ltd, Bangalore said the US subsidiary will be headed by BPL Business Telecom Group chairman and managing director Rajeev Chandrasekhar. In the last fiscal BPL Ltd had transferred the infotech (IT) business, which was under the company's corporate information system division (CISD), to BPL Telecom. At present, CISD focuses on the in-house software applications of the Rs 3,000-crore BPL group.

The development stems from the fact that the colour television manufacturing company has recently floated a subsidiary in the US, Kleer Industries Inc, to market colour monitors and other related products abroad. BPL Ltd feels that there is no need for two outfits under the same company, the sources said. BPL Telecom, atpresent, has around 35 software professionals in the US to take up various projects for its overseas customers. The company has plans to increase the number up to 100 to expand branches there. In India, BPL Telecom has a staff strength of more than 150 software personnel, in addition to 800 others in different categories. The company reported a software revenue of Rs 3.5 crore from the country and software exports of Rs 3.2 crore for 1996-97.

With the Internet segment opening up to private participation in a big way BPL Telecom is entering into strategic alliances with major companies in the UK and US for the purpose. "Our entry into the segment as an Internet Solution Provider (ISP) will mark yet another diversification of the telecom business group," sources said.

BPL Telecom is entering into a strategic alliance with LHS of Germany for billing and customer care for cellular services on global system for mobile communication (GSM) basis. LHS is a leading player worldwide for its various telecom servicesincluding paging and cellular operations. The offshore projects include developing of DSP algorithms for answering machines for Analog Devices of the US and Windows-based fax-cum-data modern device drivers and software for Sanyo Electric Company, Japan. BPL Telecom is also working with Toshiba and Harris of the US on joint projects.

The company offers software development services in fixed line billing operations, manufacturing applications, business and commercial applications, Y2K services and call centre application like interactive voice mail response and signature verification system.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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