CALCUTTA, FEBRUARY 21: Calcutta-based Kanika Infotech Ltd and Atlanta-based Cybertron Inc on Monday announced the formation of a 50:50 joint venture company to be named Kanika Infotech Inc. The new JV company will be incorporated in Atlanta, USA, shortly and will provide total e-commerce solutions.Kanika, which has its satellite development centre at Hyderabad, will develop software in Calcutta to be sold to the US, particularly to the customers in Atlanta.
Atlanta houses the largest number of websites and second largest Internet connections in the world after San Francisco. It is also the activity hub in USA for finance, manufacturing, trading, media and broadcasting, etc with companies like Coke, CNN having its headquarters there.
Elaborating on the pact, Kanika's managing director Sunil K Mall said, "Present business scenario demands that the company delivering the best possible solutions should be able to do so in the faster possible time and that too at very competitive price. This would be possible with the alliance as Cybertron has the required market presence and Kanika has the required technological expertise in terms of skilled software professional and also offshore development centre in India with necessary infrastructure for developing any solutions for the clients based overseas."
Mall said Cybertron's president David Doyle James would be the president of the JV company initially. Since the new company's customer base is in the US, it is logical that someone based there would be the head of the joint venture company, he explained.
He said James has also been inducted on the board of Kanika Infotech Ltd.Through this JV, Kanika aims to gain sufficient expertise in e-commerce B2B and B2C applications, and also expects to fetch a lot of revenues. Moreover, the company will be able to create its presence in the US market. Kanika expects to earn a revenue of approximately $1 million during the next year from this tie-up.
James said Cyberton had developed a new product called Net Cashier which is a catalogue oriented e-commerce solution. It can be tailored to meet the needs of the individual client and if necessary the `Just in Time' processing can communicate the order to the supply chain to satisfy the customer while keeping the inventory and overhead down to the minimum.Cybertron has agreed to license this product to Kanika Infotech in India, which will allow the latter to sell, use and modify e-commerce software. The company also has its own web server for web hosting services and also e-commerce solutions for which Kanika will be getting space.
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