Also in the offing is a foray into English language music with the company scouting for an alliance in the international music arena.

Speaking to The Financial Express, Super Cassettes Industries director Sunil Wadhwani said talks were at an advanced stage with a Silicon Valley-based software company for setting up the portal site which will also allow one to download music in MP3 format and streaming video.

For the purpose, the company would soon start conversion of its existing library of music into MP3 format. Targeted at the Indian diaspora, the portal is expected to be up and running in the second half of the year.

Wadhwani said the total project cost, including conversion of existing library, maintaining of the site and managing of logistics, was expected to be around $20 million.

To begin with, Super Cassettes will invest around half a million dollars, Wadhwani said. The US-based company is expected to pump in as much as $15 million for the project.

Wadhwani said the entire logisitics of maintaining the e-commerce site would be handled by the US partner. Super Cassettes and its foreign partner would work on a profit-sharing basis, he added. The music rights will remain with Super Cassettes.

On its foray into English language music, Super Cassettes managing director Bhushan Kumar said the company was exploring the possibility of tying up with international players. "We are keen to add English language titles to our music portfolio," he said.

He said the company is already in talks with several international music labels to bring English titles to the country.

The English music market is around 10 per cent of the total market in India. This is expected to grow rapidly over the next few years and Super Cassettes would like to be key player in the market.

With an eye on the international market Super Cassettes has recently entered into an agreement with entertainment major Warner Inc for marketing its music in the South East Asian region. Efforts are on to step up exports to newer markets in Malaysia, Singapore, Thailand and Africa, officials added.

Super Cassettes claims nearly 60 per cent share of the cassette market in India. Officials said the group expected to register a turnover of about Rs 400 crore in 1999-2000 with net profit in the region of Rs 75 crore. The group which has interests in audio visual products, electrical appliances and mineral water recently consolidated its business under the Super Cassettes banner.

Meanwhile, senior officials of Super Cassettes Industries said the company is considering a proposal for investment from China-based Changhong Electronic in manufacturing DVD and VCD players and colour television sets. "However we shall go for separate joint venture company based on the performance of our current marketing alliance with Changhong," a senior official said.