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July 24, 1997


Intelligroup to enter e-commerce business in India

Intelligroup Asia Private Limited of Hyderabad, a 100 per cent subsidiary of the US-based Intelligroup Inc, has announced its entry into Web commerce and electronic commerce consulting in India.

It is in negotiation with Dr Reddy's Laboratories Limited, UTI, RBI and ICICI to offer its services.

Consulting Manager Rajan Nair has said that 135 employees from all the international branches of Intelligroup Inc (the US, New Zealand, Singapore, UK and India) are being deputed into the consulting operations with significant investments.

The company has tied up with the leading Internet Service Provider in the US, Pilot Network Systems, and another US-based Internet service leader, CompuServe, to provide these services. ``Though the prime focus initially is the Western markets where there is more Internet awareness, we are entering the Saudi Arabia to Singapore geographical line in a big way,'' he said.

Set up two years ago, the company moved up the ladder last year to spot three among the top 10 in the Hyderabad Software Technology Park scheme in terms of software exports from India. With a Business Solutions Division and an Advanced Technology Division, it kicked off basically as a consulting company for the enterprise resource solutions supplied by ERP and MRP international players like Baan Company, SAP and Oracle.

From $1 million in 1993-94, the company grew to $47 millions last year (ending December). This year it plans to cross $75 millions.

Identifying the Internet explosion, it had decided that it would offer electronic and Web commerce services between any domain company (like pharmaceuticals) and its distributors, with the ERP solutions of Baan, Oracle and SAP as the main technology base for the domain company (who will be Intelligroup's client).

Stating that as the backbone networks and satellites were already commissioned and hence the company might not need huge investments for the commerce business in terms of infrastructure, Nair said the Web commerce business globally might touch $200 billion by 2000.

``The Internet explosion in the last three years was basically driven by technology and the companies' attitude towards electronic markets. Since certain currency exchange standards are yet to be set for the electronic commerce business to be up and running, we chose to enter Web commerce first,'' he said, adding that Intelligroup had experts in electronic commerce as well as Web commerce.

Intelligroup's Advance Development Centre in India is staffed with 100 consultants. It has strategic alliances with SAP, Oracle, Baan, PeopleSoft, Informix, IBM and HP.

SAP upgraded its relationship with Intelligroup to Logo Partner status - their highest alliance partnership - in recognition of the latter's quality services.

- Compiled from the Indian media

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