In addition, the Hindujas are also exploring the possibility of floating a separate company for the ISP services. "We are at present in the process of identifying a partner who has experience in the ISP segment. A formal decision will be taken soon," group company Ashok Leyland Information Technology Ltd (ALIT) executive chairman YP Sahni said.

A major problem for new ISP providers will be that of setting up the backbone. However, unlike others we have a network via our cable TV services. With the fibre-optic backbone already in place, a major portion of the investments has been taken care of. We are ready to offer services anytime from now," he added.

ALIT will be handling the software and web-enabling part of the ISP services. The group is also looking into the possibility of offering virtual private networks (VPNs) via the Internet, he said. "The VPNs use the existing Internet to transmit messages but are different because the messages are encrypted at both ends. This will offer companies security and having its own private service at the cost of using the Internet," he added.

Ashok Leyland Information Technology has also set up a new software development facility at Andheri in north-west Mumbai. "Although most of the companies have set up centres in the south, it is still a well-known fact that western India is the largest user of IT services. The Andheri facility has around 50 people," Sahni said.

Unlike other software companies ALIT has decided to pursue a new line for growth. While a majority of the software firms see offshore projects as a major revenue earner, ALIT plans to work onshore. "Although the margins are high in offshore projects, the yields are much higher in onshore projects," he said. The game-plan will be innovation. "We will like to focus not just on offering vanilla skills but also on solutions that translate into tools for the future," he said.

The company will also continue to pursue the merger and acquisition route aggressively for growth. It is in talks with some software firms for possible take over and matters are at an advanced stage, Sahni said.

The Hinduja group company is targeting a turnover of around Rs 60 crore to Rs 70 crore turnover during the current fiscal and has decided to add a new division focusing on Internet and related areas. In the banking software segment, the company in association with Midas Kapiti will soon launch a software to address the front and back-end problems. ALIT has a tie up with the Holland-based BaaN for ERP solutions.

Indonesian crisis saves day

The Hindujas did not suffer major losses on account of the south-east Asian crisis. The group had planned a big push in both Indonesia and Thailand apart from Malaysia and Singapore earlier as part of its expansion plans. In Indonesia the group had planned to set up a gateway for Internet services apart from a major telecom project. "We were lucky that the Indonesian crisis took place during the initial stages of our projects and we managed to pull out at the right time. The same was the case in Thailand and Malaysia. Whatever losses we have incurred are minor," Sahni said. The Hindujas will now concentrate on the US, Europe and the Middle East for future growth, he added.