NEW DELHI: Infosys Technologies Ltd , which is hunting for acquisitions, said on Monday it sees no roadblock to its shopping plans in government policies. "In our acquisition plan, the government is not a bottleneck," Chairman N.R. Narayana Murthy told the Foreign Correspondents' Club of South Asia, denying speculation that the Indian government's policies blocked its acquisition plans.
Murthy said the government had already allowed companies to spend up to 10 times their export revenues on acquisitions, which, in the case of Infosys, based in India's southern city of Bangalore, would imply a budget of $2 billion. Besides, the government had promised early approval on merit if expenses overshoot this limit, Murthy said.
Known for his sharp-thinking, conservative style that blends simple living with high technology, Murthy has in the past said Infosys would seek value for money while acquiring firms.
Infosys was the first Indian company to list on the US Nasdaq, in March 1999. Shopping for other firms has been a key aim of its fund-raising plans. Murthy said digesting acquisitions was critical, and needed extra care. "In our business, you have to bring together large groups from different cultures," he said.
To open software centre in London
The company said it will open a software centre in London by November. "The target is October. It would be between October 1 and November 1," Mr Murthy said.
A spokeswoman for the company, which last year became the first Indian firm to list on Nasdaq, said details of the centre would be announced later. The London centre would be the company's fourth overseas development hub. It has proximity developments centres in California and Massachussets, and a global development centre in Toronto. The proximity centres are aimed at helping overseas customers get quick responses in software services, much of which are executed from India.
(C) Reuters Limited 2000.