CG-Vak to raise funds for US operations

BANGALORE: Coimbatore-based CG-VAK Software & Exports Ltd. is raising funds for its US operations. Company managing director G. Suresh said, "`We will be raising a total of $500,000. Half of that will come from foreign currency loans while the rest will be from placement of redeemable preferential shares.''

The company already has an office in New Jersey. It plans to use the fresh funds to expand its presence in the US to Silicon Valley, California and Atlanta. Further, the company has formed a 50-member "Cyber Team'' to work on applications for the Internet. It also plans to launch food and beverages and tourism Web portals.

The US division of the company has entered into a strategic alliance with two US companies, Starcom and TIS International, to market its e-commerce services. According to Mr. K. Manickam, Chairman of the company, orders worth Rs 2 crores have been received by the subsidiary. The organization estimates its turnover for this fiscal at around Rs 6 crore, from about Rs 4 crore last year.