The Hindu Business Line : CA to exit TCG venture

Computer Associates International (CA), one of the world's largest information technology software companies, has firmed up plans to exit from its joint venture with The Chatterjee Group.

Following formalisation of the pullout process, the joint venture company, CA-TCG, would cease to exist. Computer Associates holds 51 per cent of the equity stake in the joint venture company while The Chatterjee Group holds the balance 49 per cent. The joint venture company was formed in 1999.

According to Mr Pravir Arora, CA's Head - Channels, India and SAARC, the joint venture company had been operating as a captive unit of CA and was engaged in select software development and testing activity.

With CA setting up its own development centre in Hyderabad - where more than 1,000 people are currently engaged - it was felt necessary to discontinue with the existing arrangement in Kolkata.

"There were issues pertaining to intellectual property rights and, hence, exiting from the joint venture was felt necessary", he said, and added that the dissociation of the two partners to the venture was being done in a planned and friendly manner.

Mr Arora said the financial details and implications of the pullout proposal were being looked into and the process was expected to be over within the next few months.

According to him, the Hyderabad development centre of CA was its largest outside of the US and, over the next one year, had the potential to emerge as the largest stand-alone development centre of CA anywhere in the world.

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