Microtek enters software segment

BANGALORE: The Delhi-based Microtek International, a hardware manufacturing

firm and an associate of shoe major Action, has acquired a software company

`Target Technologies' to enter the software development segment. The new entity,

called Action Microtek Infosystems, will have an initial capital of Rs 5 crore

and both Action and Microtek will have 40 per cent stake each. The remaining 20

per cent will be held by Target Technologies. The new company will deal in

management information systems of business (MIS), manpower development, offshore

development and marketing of packaged software solutions.

Said V.K. Kapur, Director, Microtek International Ltd, said, "Since

government is not supporting the hardware segment in India we are forced to

focus on other segments." According to Mr Kapur, who is one of the IT Task

Force member, the non-implementation of hardware report is hurting this

industry. "But, we also want to leverage the software boom that is

happening in India," added Kapur.

Action has tied up with Atlanta based Pyramid Inc. for executing offshore

development projects for Unisys from India. . The company is in the process of

working out the revenue model. The company will be headquartered in New Delhi

with VK Gupta, who is the current CEO of Target Technologies, heading it. Action

Microtek has plans to go public by the end of this year.