The tie-up is a strategic step by Salora International to consolidate its foray into the area of information technology. In the last few months, Salora has promoted three IT ventures: Jadoonet, which provides a cost effective solution for Internet access through the television; Encompass Software, which develops Web-enabling software solutions and FX Infotechnologies, which distributes IT hardware through various channels.

Says Jiwarajka, "having invested in these three companies we have got the front-end solution in place. For the back-end and middle-end solutions, we have invested in Logic++. Using the same core technologies, Salora will have access to several high-end products to respond to new market opportunities."

For this alliance Salora will have a two-fold revenue model. It will market Logic++ products in India, and secondly with the Logic++ stock going up, Salora will also benefit. Logic++ is expecting a venture capital funding of the order of US$ 5 million. Post VC funding, Salora will have a 11 per cent stake in Logic++. According to Jiwarajka, "while their core competency is product development, our strength lies in sourcing, production and marketing." Logic++ CEO and President Sudhin Mishra says, "the current infrastructure for e-commerce in the country is not very conducive forthe common man to participate in the business effectively.

The available resources in the market today make costs and connectivity prohibitive for most new entrants. Lack of reliable, fast and low cost Internet access, inadequate infrastructure resulting in routing congestion, under-performance of low cost servers and high set-up and operational costs are barriers to e-commerce for many." Mishra adds, "the alliance aims at addressing these issues.

The focus will be on low-cost, high-performance Internet access using current infrastructure. Scalable Internet access high performance web servers at low cost and customised and generalized software are some of the solutions that this alliance will provide."