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|November 21, 1997||
The American Dream
Datamatics plans a development centre in the USThe Bombay-based Rs 1 billion Datamatics Limited is setting up a subsidiary in the United States to expand its operations in the North American market.
The company recently received permission from the Reserve Bank of India to set up a subsidiary which will be operational in a couple of weeks.
Rahul Kanodia, joint managing director, Datamatics, has said "We have been represented by our partners in the US but with our business growing in that region we have decided to set up a subsidiary. This will enable us to service our customers better and also expand our operations by attracting the local talent."
Datamatics will be setting up a development centre in United States, either at New York or at Boston, but the bulk of the software contracts and projects will be executed at its development centres in India.
"We plan to undertake a part of the development work that is critical in the US. It is estimated that the number of professionals at the US subsidiary will scale up to 150 by the end of its first year of operation. The US subsidiary will initially focus on the manufacturing, transportation, electronic publishing and platform migration business," Kanodia explained.
Datamatics will be funding its investment in the US, estimated to be Rs 150-180 million, through internal accruals and debt financing.
On the domestic front, the company has already completed the first phase of its expansion plan at a cost of Rs 350 million through internal accruals and debt financing from IDBI and Exim Bank.
The second phase of its expansion plans will be completed in the next 12 months at a cost of another Rs 350 million.
The expansion involves setting up of two new software development centres at Madras and NOIDA. It is also expanding its facilities in Bombay.
- Compiled from the Indian media
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