Datatex, ICS Tie Up; Look To Capture SME Segment

Bangalore | Updated: Feb 23 2004, 05:30am hrs
Italian-Swiss textile manufacturing solution firm Datatex AG has tied up with Infinite Computer Solutions (ICS), to target the small and medium scale textile industries in the country.

The company, which had entered India in 1998 as a partner of IBM, has around five to six large textile companies as its clients currently.

Datatex is also looking at setting up a development centre in the country for joint product development with Infinite after establishing its presence in the market. Under the tie up, Infinite will be responsible for marketing and sales of Datatex TIM (Textile Integrated Manufacturing), a specialised ERP solution designed for textile and apparel manufacturers in the country. The partnership is targeting the $200-300 million ERP solutions market in the country.

Speaking to The Financial Express, Datatex area manager in charge of India, China, Thailand, Hong Kong and Middle East, David Vider said,

With the quota regime coming to an end by 2005, the SME segment in the country has to be highly competitive to survive in the market. This has prompted many (small and medium enterprises) SMEs to invest in technologies, which would bring in better productivity and efficiency to meet the customer demands, he said.

In India, 40 to 50 per cent out of the $20 billion textile and apparel market, is in the organised sector. Out of this, over 40 per cent comprises of SMEs. With 20 per cent of the SME textile industries concentrated in the South, it would be a key focus market for Datatex, Mr Vider said.

According to a five year business plan drawn by both companies, in the first year, Infinite will create an implementation and support team in Bangalore for sales, implementation, and maintenance of TIM in India. In the second phase, Infinite would take Datatex solutions outside India in countries like Sri Lanka, Pakistan, Bangladesh etc.

About further plans, Infinite assistant vice president, business development Rohan Rodrigues said, We have entered into a long term relationship and would look at product development, product enhancement and maintenance. Datatex is currently working on a platform independent Java ERP, which would be out by 2005-06. Infinite would also look at the possibility of selling the finished modules of the new product to Indian customers, he said.

The company is targeting sales of $1 million in the first year of the partnership and expects to double it by next year. The company currently has 350 clients in 35 countries across the world.