Satyam in JV with Bank of Madura

BANGALORE: Satyam Infoway Ltd. and private sector Bank of Madura (BoM) have announced an alliance to set up a 50:50 joint venture to offer e-commerce services to persons of Indian origin (PIOs) living abroad. The company to be called Ties2India.com will be located in India, and later perhaps as a subsidiary in the US as well, and will have an initial equity of Rs 12 crore.

BoM chairman K. M. Thiagarajan said the company's objective would be to tap the tremendous buying power of the PIO community, estimated at some 22 million and we believe that focussing on their needs and ties to India will yield good dividends. The portal that would be set up would enable shopping for goods and services for delivery in India and overseas, buying property in India and having it managed by certified property management agencies, investments in financial services in India and investments in gold and jewelry within India. It will also provide travel services into and within India and linkages to organizations serving public causes, cultural organizations and educational institutions in India. While BoM will provide the payment systems, Satyam Infoway will provide the technology.

According to Satyam Infoway managing director R. Ramraj, Ties2India.com would also certify the quality of products and services and vouch for the accuracy of information and of vendors. He also added, " Confidence and trust are very important if such financial transactions on the Internet are to take place. So we will do everything to provide the needed confidence. Even the decision to set up an independent company is towards this end.'' To ensure security of payments, the portal will also offer an escrow account mechanism that will hold payments on behalf of the customer until the product is delivered to the customer and also until the "money-back'' period on the product is over. Security is further enhanced by the fact that all transactions would be bank-to-bank.

Ties2India.com services are expected to begin early next year. Mr Thiagarajan said the Reserve Bank's permission for the venture is awaited and expressed confidence that this would come soon. He also said that while the initial focus of the new venture would be on PIOs, it may later offer the same services to foreigners interested in India. The partners are in the process of finalizing a chief executive for the project who will be based in the US, who will first take up the job of preparing the business plan. He ought to have experience in e-commerce and in living and working abroad. They are also identifying people for the company and said, "we want people who have done this business on the board.''

Meanwhile, Satyam Computer Services Ltd. has signed a 50:50 joint venture agreement with Venture Industries, to set up Satyam-Venture Engineering Services Pvt. Ltd. Venture Industries chairman Larry J. Winget and Satyam chairman B. Ramalinga Raju signed the agreement in Detroit recently.

The technical operations will be based in Hyderabad and an independent global sales and marketing organization will be set up. The company plans to provide engineering services to automotive OEMs, tier I and other automotive suppliers. The expertise includes CAD/CAM/CAE, simulation and tool design.

The company will also provide software development and customization for engineering design, manufacturing automation and manufacturing processes-related activity. The JV will combine Satyam’s capability in providing engineering services and Venture’s automotive product, materials, design/development, tooling and manufacturing strengths. "What is important is the synergy of our views in the way we conduct our businesses. We are looking at a long-term relationship and it is a win-win situation for all of us," said Mr.Larry. For establishing the joint venture, necessary applications to the Reserve Bank of India (RBI) and other government agencies are being made.