Co-Future targets Rs 300 crore turnover by 2003

Co-Future, the 51:31 software joint venture between HFCL and Kerry Packers'

Consolidate Press Holdings (CPH), targets a turnover of Rs 300 crore in the next

three years. Most of this revenue is expected to come from its onsite or remote

consulting services. Although the target seems a little stiff for a start-up

company, considering the competencies of its parents, Co-Future would not only

meet the target but in all likelihood exceed it.

While HFCL has core-competency in telecom and has invested considerably in

developing healthcare software, CPH has a dominant presence in Australia and

Asia. Says Co-Future CEO Rajiv Shah, "We will take the route of leveraging

on relationships and marketplaces." Besides setting up direct presence, it

could also mean that the company is open to tie-ups to establish its presence in

the overseas markets. Co-Future already has presence in Australia, the UK and

the US. Currently, the company will focus on providing onsite and offsite

consulting and development services in telecom and healthcare. By the end of

2001, the company will set up hi-end remote support services for the financial

sector and later move into providing solutions in entertainment-media including

animation software.

The company will also invest considerably in product development, especially

telecom software. It plans to tie-up with Indian educational institutes to

undertake joint research programs. This has been a much-favored route adopted by

telecom companies of late. Last year, the Bharti Group tied up with IIT Delhi to

set up a school of telecom studies and Escotel tied up with IIM Lucknow to

promote research on CRM. IIT Chennai had also entered into some arrangement with

the former Spice Telecom. Such an arrangement not only enables companies to tap

talent but also makes sound business sense as a lot of basic research can be

done at campuses.

With an initial investment of Rs 50 crore, Co-Future hopes to rake in profits

by the end of 2001. The company is also exploring the growth path through

acquisition since it does not make sense to re-invent the wheel. Speaking about

funding, Shah said, "Funding is not a problem at Co-Future since both the

parents are very rich." Declining to reveal details about any acquisition

plans, he said that the company is looking at product companies and technology

companies working on emerging areas. Employee strength, which stands at 125 now,

is expected to increase to 350 soon.