The Hindu : Laser Soft keeps alliance option open

Online edition of India's National Newspaper
Tuesday, Jan 07, 2003

Business

Business

Laser Soft keeps alliance option open

By K. T. Jagannathan

CHENNAI JAN. 6. Even as it is pining to break into newer markets globally, the Chennai-based Laser Soft Infosystems, specialising in developing banking software, is keeping its growth options close to its chest.

Though some well-known firms, global and domestic, have evinced interest in having a strategic alliance with the 16-year-old Laser Soft, the latter is reportedly treading a cautious approach. The `halting reaction' for these overtures is understandable given the promoters' keenness to preserve the HR (human resources) practices that are unique to Laser Soft. It is learnt that Laser Soft may not after all be averse to a strategic partner provided that could result in the flow of fresh businesses across the globe. Laser Soft, it is pointed out, has a stronger presence in the domestic market. In world markets, it is visible in West Asia. Any favourable decision towards a strategic alliance will hinge on the prospective partner's ability to help Laser Soft spread its tentacles to markets such as the U.S. and Europe.

It is clarified that any strategic alliance (in the form of equity participation) will be restricted to 26 per cent of the paid up capital, which is now Rs. 8 crores. The promoters hold 74 per cent, ILFS 16 per cent and employees 10 per cent.

Laser Soft has two banking systems, cluster banking and core banking. It is now implementing the cluster banking system for Andhra Bank and core banking system for Corporation Bank.

Even while keeping the alliance option open, Laser Soft is going ahead with its already programmed plan to expand its presence in three more nations in West Asia from the existing five. Further, it is taking a hard look at the Far East.

The company, it is emphasised, is consciously pursuing the `horses for courses' path by producing regionally competitive products.

Locally, it is hoping to move into smaller towns like Tiruchi and Salem to cash in on the competitively priced local talents.

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