Financial Daily from THE HINDU group of publications
Tuesday, May 14, 2002
Corporate - Outlook
Navision Software to focus more on SMEs for growth
KOLKATA, May 13
NAVISION Software India Pvt. Ltd, the Indian subsidiary of the $ 200-million-turnover Navision a/s of Denmark, has decided to focus on the SME (small & medium enterprises) segment for business growth. The end-to-end enterprise business solutions provider has launched its operations in Kolkata.
Speaking to newspersons on the occasion, Mr Yash Nagpal, Managing Director of Navision Software India, said the company's Indian operations were expected to generate revenues of $20 million by 2004. While the development centre is located at Gurgaon, the company operates in India through a chain of over 50 solution resellers. The number of such resellers is expected to touch 100 by the year-end. By that time, the company would have invested $10 million in its Indian operations.
Mr Nagpal said Navision was targeting SMEs having a turnover of between $50 million and $250 million. The SMEs could belong to industries such as hospitals, tea estates, export houses and hospitals. Navision would offer Indian applications-specific ERP (enterprise, resource & planning), SCM (supply chain management) and CRM (customer relationship management) solutions. Also, global branded products would be introduced in the Indian market.
Over 750 companies in India are already using ERP packages. The potential in this regard is huge, especially in the SME segment. "There are very few home-grown ERP packages in India'', Mr Nagpal said, adding that the market for ERP applications in the SME segment was not saturated.
Mr Nagpal said Microsoft had offered to buy out Navision for a consideration of $1.33 billion and amalgamate the latter with its business solutions division. The company's shareholders' approval for the proposal was awaited.
Mr Michael Sternberg, Ambassador of Denmark to India, said the scope for bilateral economic relations between Denmark and India was growing. The focus would continue to be on sectors such as biotechnology, dairy products, textiles and aqua and agro-products.
To facilitate increased bilateral trade and investment, the European Union _ whose chairmanship will be taken over by Denmark from July 1 _ will host a European Union-India business meet on October 9.
Over 300 CEOs of companies in India and the EU will meet and discuss ways of increasing business ties.
This will be followed by European Union-India Summit on October 10. The following day, the Prime Minister, Mr Atal Bihari Vajpayee, is scheduled to address the captains of industry in the European Union while on a visit to Denmark.
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