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Computer Associates to float 3 new joint ventures in India 

Baburajan K  
Mumbai, Aug 14: Computer Associates (CA) International Inc is planning to float three new joint ventures in the country in the areas of telecommunication, Internet and application software.

The company is also planning to step up its investments in the country to $130 million from the earlier expected $100 million over a period of years. Computer Associates will continue to focus on development activities, while enhancing the marketing strength.

At present, CA has four joint ventures in India. These include Computer Associates TCG Software (CATS), CA-Escosoft, CA-Pentafour Software and CA-Satyam. "All the existing and three new ventures will come under the main company, although CA had initiated a restructuring exercise," CA president and chief executive officer Sanjay Kumar told reporters in a teleconference from the US.

As per the restructuring plan, CA will focus on delivering shareholder value by spinning off technology that would flourish on an independent basis. CA recently announced the formation of iCan-ASP to service the application server provider (ASP) infrastructure marketplace. However, the company's existing alliance with Satyam Computers will not be affected due the new business plan, Kumar added.

The application service provider joint ventue between Computer Associates and Satyam Computer Services was announced in May 2000. The joint venture will provide small and medium enterprises with cost-effective access to ebusiness and back office applications and other implementation expertise and support.

CA International is also planning to spin off its desktop accounting business - ACCPAC and other businesses over a period of time. CA's chairman Charles B Wang will focus on new ventures. CA has given mandate to Credit Suisse First Boston and Morgan Stanley Dean Witter to advise on these new ventures.

"In India, we will concentrate on customer relation management (CRM) areas working on using Neugents solutions. Within CA's application development and business intelligence area are Jasmine ii and Neugents that aim to position CA in the ebusiness world," Kumar said.

Kumar said the main focus of Computer Associates would be in the ebusiness software. The company will also add new products and solutions in the areas including security and storage management, network, event and performance management and application development and business intelligence.

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