Infovergix, Nortel Complete Technology Deal
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[ASIA] Infovergix Technologies, a part of the $1.5 billion O.P. Jindal Group, entered into a strategic partnership with Nortel Networks to address the e-applications market in India last week.
"The alliance will leverage the technology strengths of Nortel and deliverable skill sets of Infovergix. Nortel's key focus area for India are e-business, wireless Internet, Internet telephony and optical Internet, and Infovergix will help us address this market," said Ravi Chauhan, country manager (India and Saarc), Nortel Networks.
He added that as of now, Nortel had no intention of taking an equity stake in Infovergix, with its participation being limited to providing the relevant technology.
"The global IT services market is estimated to grow to $1.4 trillion by 2003. This represents a huge business opportunity for Infovergix," said Naveen Jindal, Vice-Chairman and Managing Director of Jindal Steel and Power Ltd. (flagship of the group), said.
Infovergix will focus its attention on IT infrastructure and IT-enabled services, company officials said. The new company is beginning operations with 25 people. "We will add 5 to 10 people every month in the course of next one year," Brahm Majithia, managing director and chief executive officer of Infovergix, said.
An initial investment of $2.17 million has been lined up for Infovergix, in which Jindal Steel and Power holds 60 percent equity. The rest lies with strategic investors and the management (through ESOPs), Jindal said.
The company, however, would not venture into the software development, he said. It would also not provide customers relationship management services. However, Infovergix would work as a Nortel partner when the latter implements large networks and service for ISPs.