Rainbow Tech Sets Aside $1.5 M For India Ops

New Delhi: | Updated: Jan 28 2003, 05:30am hrs
Nasdaq-listed Rainbow Technologies is planning to invest $1.5 million in its Indian operations this calender year. A major part of this investment is likely to go into its research and development (R&D) activities.

We are planning to build India as one of our strongest R&D bases in the coming years as we intend to exploit the talent available at low cost. In order to expand our R&D base, we will invest over $1 million, Rainbow Technologies president and CEO Walter Straub told eFE.

In the last calender (which is also the financial year for the company), Rainbow had shut down its Internet division. With the dotcom bust, we realised that we could do away with the Internet business. As part of our restructuring plan, we reduced our workforce by 15 per cent in last calender, Mr Straub said. The company, however, added employees in India during the period.

The company has over 70 developers in Delhi development centre. Globally, it has four centres. Apart from one centre in India, two are located in the US and one is in China.

Rainbow offers solutions on PKI (public key infrastructure), instant private Web and some other anti-piracy solutions.

In the last fiscal ending December 2001, the company earned revenues of $123 million and incurred loss for the first time. This year we see at least 2 per cent rise in our topline along with profit, he said.

In India, the company has 135 customers including Tata Consultancy Services.