Growing SME business market drives acquisition

Wednesday, 08 January 2003, 20:30 IST
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BANGALORE: Accpac international, a subsidiary of Computer Associates, has taken over all equity in its Indian joint venture in a bid to enhance its share in the fast growing small and medium business market. Accpac has acquired the remaining 49 percent in its Indian unit, a joint venture with Pentasoft Technologies, for an unspecified amount of money to provide end-to-end business management applications. "The Indian small and business market is worth over 8 billion. And with growing awareness about the need for IT spending, the domestic market is growing at a fast pace," Rajesh Ghosh, CEO, Accpac India, told reporters here. "The proprietor owned companies have also started looking at the domestic market, instead of the export market, to grow their businesses," he added. "They are also realising that technology is offering solutions that would help cut costs and help better management. This is where we come in and the potential is tremendous," Ghosh said. Accpac products include simple accounting packages that could be scaled up for any company -- with 20 or 1,000 employees. "Low investment and scalable product lines deployable on both Windows and Linux is what is working in our favour," he added. With the acquisition of technically trained people resources, the company is now offering hosted services and flexible purchase options for firms that are unable to immediately invest. Among the top 20 customers of the company is Hindustan Lever Ltd. The Bangalore-headquartered company is now planning to open in Mumbai and New Delhi as well as other cities.
Source: IANS