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|April 21, 1998||
Geometric sets up 100 per cent US subsidiary
Geometric Software Services Company Limited has set up a 100 per cent subsidiary in the US. Geometric was spun off as a separate company from Godrej and Boyce in 1994.
According to GSSL Managing Director Manu Parpia the subsidiary, Geometric Software Services Inc, will become fully functional by June.
"The working of the subsidiary is important to us as it will directly interact with our customers in the US, find the needs of the market and give the parent company the feedback. This is essential as we can accordingly develop the right kind of product and technology, keeping in mind market requirements," Parpia said.
According to him, while GSSL will be involved in developing technologies, GSSI would market the technologies in the US, which is strategically an important market.
Apart from setting up this subsidiary, GSSL has drawn up plans to go public sometime next year in spite of the poor market conditions.
"More than 30 per cent of our equity is held by venture capital funds and we need to give them an exit option. Although the overall market conditions may not be good, it is good for software companies," said Parpia.
Technology Development and Investment Corporation of India (TDICI), the venture capital fund of ICICI has a 28 per cent stake in the company while Draper International, a US-based venture capital, has a 4.5 per cent stake.
Godrej & Boyce and foreign companies have an estimated 24 per cent stake each while the rest is held by employees and Parpia.
GSSL, which develops technologies and products and implements specialised high-value projects in the area of CAD/CAM, has tie-ups with international CAD/CAM companies such as Macneal Schwendler and Spatial Technologies. Besides, major CAD/CAM software makers such as SDRC also use its products.
According to Parpia, the tie-ups with major players in the field will help in the growth of the company. "We are following a strategy of riding along with some market leaders as this will give much wider exposure and acceptance to our technologies," said Parpia.
- Compiled from the Indian media
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