Summit Infotech diversifies into IT-enabled services

Prachi Verma in New Delhi

Summit Infotech Limited, a Rs 30-crore software solutions provider for media houses based in New Delhi, is now looking at diversifying into information technology-enabled services by offering content digitisation solutions to state governments that have embarked on e-governance initiatives.

Negotiations with nine state governments, including those of Gujarat, Madhya Pradesh, Rajasthan and Chattisgarh, are on to place e-governance related data on the Web. Each of these projects are in the range of Rs 50 lakh to Rs 1 crore.

The company believes that its negotiations with the Gujarat state government are in the most advanced stage. If implemented, the Gujarat project will look at managing information on government circulars, notifications, post-quake data and Vidhan Sabha-related information.

“We are in talks with the Gujarat government and expect that a number of projects will flow in from this state,” Summit Infotech Limited, chief executive officer, Rakesh Kapoor said.

The company has plans to set up content digitisation facilities in the states that it might clinch a deal. A single facility will, however, require investments to the tune of Rs 2-3 crore.

The company has however discontinued its system integration business, as a result of which the company is expecting its revenues for this fiscal to be actually less than Rs 30 crore, it recorded for fiscal ending March 2001.

“As the system integration business had a low margin, we decided to discontinue it. We are now focusing on the media technology and Indian language solutions,” Mr Kapoor explained.

Instead of expansion, the company plans to focus on consolidation for this fiscal, Mr Kapoor pointed out. The software solutions company, which has about 130 employees, also has a 30,000 sq feet software development centre in Gurgaon and offices in Delhi, Bangalore, Hyderabad, Chennai and Mumbai.

Summit Infotech Ltd has sold its mainline packaged software to 20,000 customers so far. Some of these include media houses like Times Group, Anand Bazar Patrika and the India Today Group.