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Cerebra Technologies sets up joint venture in Australia

Fakir Chand in Bangalore

Cerebra Integrated Technologies Ltd, the Bangalore-based listed company providing total IT solutions, has set up a joint venture in Australia by collaborating with the Melbourne-based First Sense to take up software projects in the Asia-Pacific region, especially Down Under.

With an upfront investment of $100,000 each, both the companies will have a 50:50 stake in the JV, christened Cerebra Australia. As a precursor to the joint venture, Cerebra had developed $1-million a cutting edge end-to-end (E2E) application software for First Sense.

Brian Peck, CEO of First Sense, told this correspondent here on Wednesday that the E2E software was licensed to Fosters, a leading Australian beverage company, and two governmental organisations, viz., Australia Customs and Vision Australia.

"The E2E is designed to deliver the right information to the right source in time to act and make a notable difference. It enables organisations to view distributed applications from the end-users' viewpoint to find out if the application is available, ascertain its performing levels, and tackle inconsistencies, if any, instantly.

According to Cerebra's CEO Sriram Mahalingam, the E2E is a functional proactive way of managing business critical applications. Its monitor application performance ensures availability and accountability.

The partners are projecting a turnover of $5-million in the first of the JV's operations with major revenues generating by licensing the unique product to a host of user companies in Australia, New Zealand, and other countries.

Cerebra Australia will also embark upon providing onsite and offshore product development besides E2E solutions in the Asia-Pacific region. "The partnership will be extended to offer e-commerce and web applications. As First Sense's exclusive IT partner in both the countries, Cerebra will also provide consulting services for its customers in the region," Sriram affirmed.

The Rs 300-million company has also set up a state-of-the-art unit at its Bangalore facility to manufacture a range of hardware products, including motherboards, memories, graphic cards, monitors, and keyboards.

CITL chairman and managing director (CMD) V Ranganathan claimed that the plant, set up at a cost of Rs 50 million, would be using the surface mounted technology, a first of its kind in the country, to roll out about 30,000 products per month.

"Besides catering to the growing domestic IT market, consisting of assemblers and resellers, the products will be exported to the US, European, and south-east Asian markets, targeting even branded OEMs."

CITL has tied up with the US-based Anytech to access latest technologies as well as a greater reach in global IT market. It has also set up marketing operations in APAC, the UK, and Europe to tap Fortune 500 companies.

With a view to making Cerebra a one-stop shop for all IT hardware and products, including desktop PCs, servers, workstations, notebooks, and UPS, CITL will be roping in several channel partners and distributors.

In tandem with its vision to provide total solutions, Cerebra has also set up an integrated software division to deliver solutions and services to IT users and developers that will give value addition to its hardware products.

CITL made an IPO two quarters ago to raise Rs 90 million for funding its ongoing and future expansion plans. The issued, priced at Rs 10 with a premium of Rs 50, was oversubscribed by six times.

Cerebra finance director S Krishnan disclosed that the company's turnover would touch Rs 1 billion at the end of the current financial year (2000-01), a whopping growth of over 350 per cent over the previous year (1999-2000).

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