Basically a power cable manufacturer, the company has recently shifted its focus to software. In September, the company had amalgamated its software outfit Goldstone Softech. According to marketmen, the company will also change its name to Goldstone Technologies.

The company made its foray into the IT sector early this year with an investment of around Rs 7 crore. The division commenced operations after taking over KLG Softech, a profit-making software development firm. Since then, the software outfit has entered into business alliances with Forte Software Inc, James Martin & Co, C-DAC and CMC Ltd. Goldstone's diversification into the software business was due to lower realisations in the telecom equipment business. Goldstone Engineering manufactures TWF heat shrinkable sleeves used in the jelly-filled cable joining kits.

Currently, the software contributes less than 20 per cent of total sales. However, by fiscal 2000, this should go up to around 45-50 per cent. For the year ended June 30, 1999, the company reported a net profit of Rs 3.55 crore on a turnover of Rs 25.28 crore. The company is currently developing software solutions and products for the finance and insurance sector. It has recently developed a product for a global auto major. Besides, it has also developed datawarehousing solutions for the domestic market.

Goldstone plans to focus on adapters for enterprise application integration (EAI) that allows an interface between different existing ERP solutions, under a comprehensive agreement with Forte Software Inc, USA. The company plans to focus on four areas of operations under the agreement with Forte.

It will run a Forte Development Centre, which will be called the adapter factory. Setting up a competency centre for imparting best practices is the second area. The company also proposes to set up an authorised training centre for Forte products, besides distributing those products. Goldstone has tied up with Credo, Israel and Lumli Technologies, Australia to develop software solutions in the areas of EAI and general insurance.

Hyderabad-based Goldstone Engineering has recently acquired two US-based software companies - Primesoft group and Fortech Software Inc. The proposal is a stock-for-stock deal that is intended to be accounted for as a pooling of interests. After the deal, to be completed on March 2000, Primesoft and Fortech will work as independent business divisions of Goldstone in the US and the brand equity of the two companies will be maintained.

Goldstone, on completion of the pact, will have a wider reach to locations like California, Arizona, Virginia, Atlanta and Vermount. Its portfolio will also be enhanced to cater to segments like telecom, insurance, banking, finance, utilities and power. The company is expected to achieve significant growth in software income in the coming months due to the buy-out. Analysts expect it to achieve a revenue of Rs 26-28 crore during the first full year of operations and Rs 55 crore by June 2001.

Primesoft group consists of Primesoft Services Inc and Primesoft LLC, and has been catering to the needs of Fortune 500 companies like MCI, HP, Delta Air, Bell South, Air Touch, Earnest and Young, BASF, etc. The group has achieved a turnover of $3 million in the first nine months of fiscal 1999.

Fortech Software Inc is the market leader in software products in the utilities industry with a projected turnover of $2.5 million this year.