Both companies would inject a total of $5 million into the equity of United Tele Shopping. A deal to this effect is likely to be signed by January-end. Company officials, however, declined to comment on the proposed equity stakes of these two firms.

Industry analysts said the proposed investment of Intel made sense for the chip maker considering the potential of United Tele Shopping and Intel's investment plans in the domestic Internet segment.

Walden International Investment Group (WIIG) and Draper have already pumped in an undisclosed sum, buying out about 44 per cent equity stake in United Tele Shopping. However, it is not known whether these two VCs would bring down their stake in the venture following the infusion of equity from GE Capital and Intel.

United Tele Shopping would utilise the funds thusraised to part-fund the expansion plans including venturing into overseas markets in a big way during the current fiscal. ``The company is planning to acquire product distribution channels across the country, in addition to setting up greenfield projects. We are in talks with many distributors for the purpose,'' United Tele Shopping and Marketing Co managing director Rajan Kaicker said.

``We currently enjoy a one-on-one relationship with our DRTV customers and can extend this via the web to better understand customers' needs to serve more efficiently and to achieve economies of scale. The company, through its TSNShop.Com, will benefit from the `first mover advantage' in a space that is ready to explode with users, new ideas and lifestyles,'' he added.

During the fiscal 2000-01, the company is planning to achieve sales revenue of about $10 million. The company is tying up with channels including Vijay TV and others to offers its services in Bangladesh. It has already ventured into markets like SriLanka.

Its website, which went online from November 15, 1999, receives about 250 orders a day. The new investments and other initiatives are likely to help United Tele Shopping retain the numero uno position in the market place. ``We are aiming to become an integrated marketing company through the electronic media,'' he added.

At present, the company has 102 centres across the country to distribute its products. United Tele Shopping provides teleshopping retail services selling small home appliances utilising its cost-effective media programming skills and low airtime. This kind of retail channel is a new growth area in the country, he pointed out.