Speaking to reporters Modi-GBC chairman BK Modi said the company coming out with a Rs 12.4-crore rights issue to enhance its equity base. The company is converting the promoters' loans into equity as part of Modi GBC's equity restructuring plan.

The two promoters will underwrite the entire rights issue equally so that equity sharing ratio between them is maintained. Modicorp and GBC hold 40 per cent each in the company while, 20 per cent is being held by the public at large.

Modi GBC also plans to bring in an additional Rs 3 crore over the next six months. "We are yet to decide whether the forthcoming fund would be in terms of equity or loans," Modi GBC's newly appointed chief executive officer Sutendra Kumar said.

GBC president Govi Reddy said the company is working on arenewed focus in India. "We are targeting a 40 per cent compounded growth every year," he said.

GBC is also taking management control of the company which was previously in the hands of Modicorp. The company's board will now have Reddy as one of the directors.

Modi GBC's performance has been below par during the last 11 years of operations in the country and is in the red at present. "At some point in time we were also thinking of pulling out of the joint venture," Kumar said.

"But now we have worked out a complementary between the two partners where the company's operations and marketing will be handled by GBC while, Modicorp would provide assistance in the form of liason and other forms of assistance," Kumar added.

Modi GBC plans a major revamp of its marketing exercise and will launch its latest products in the country. The company's marketing is being looked after by GBC vice-president Asia Pacific Charles K Shattuck.

New firm to tap Internet segment on cards: Modicorp plans to float anew company to tap the Internet market. Company chairman BK Modi told The Financial Express that the group has applied for a licence to become an Internet service provider.

Modicorp is reworking its focus and will lay emphasis on the information technology segment, he added. Significantly, the office automation joint venture Modi Xerox has also set up a new subsidiary Modi Xerox Software Services Ltd.

While Xerox will look after the hardware part, Modicorp will handle the software development operations, Modi said.