The Hindu Business Line : Sify expanding cyber cafes

SIFY Ltd, an Internet, network and e-Commerce services company, is expanding its cyber cafes, and is adding two to three iWays (brand name of the cyber cafe) every day.

The company currently has over 2,000 iWays in 67 cities. Other than the metros, iWays are opened in tourist places such as Siliguri, Ajmer and Ranchi, Mr Shrikant P. Joshi, President, Access Media, Sify, told Business Line.

Sify own 36 iWays, and the rest is run by franchisees, including retired Government officials, bankers, professors, lawyers and grocery owners. Revenue from iWays accounted for 23 per cent of the Sify's total revenues of Rs 77.8 crore in the quarter ended June 30, 2004, he said.

iWays are used as a one-stop access point across the country by the sales force of a number of business organisations for daily reporting. Some use the video-conferencing facilities at iWays for interview with potential employers abroad.

According to Mr Joshi, Sify is also marketing its broadband connectivity to homes through cable television operators. It has around 40,000 broadband subscribers, mainly in Mumbai and Delhi. It has also tied up with over 700 cable operators in about 30 cities. On online gaming, Mr Joshi said it is yet to take off in a big way in India due to low personal computer penetration, and low broadband Internet connectivity. Sify is currently testing the market for online gaming.

Venture Tech hikes stake

VENTURE Tech Assets (VT Assets) Ltd acquired 7.5 lakh ADS (American Depository Shares) of Sify last month from various sources. This represents 7.5 lakh equity shares for a purchase price of $3.45 million (around Rs 15 crore).

In February this year, the company completed the sale of 10 lakh ADS representing 10 lakh equity shares for a purchase price of $7.5 million (around Rs 30 crore), says an SEC filing by Venture Tech Assets, an affiliate of Venture Tech Solutions Private Ltd, Chennai (VT Solutions). Following the additional share purchase, there could be a marginal increase in the shareholding of Venture Tech in Sify, said a Sify official.

As of June 30, 2004, the company's shareholding in Sify was 10.1 per cent, Satyam Computer 31.9 per cent, SAIF Investment Company 8 per cent, ADRs 47.1 per cent and others held 2.9 per cent, he said.