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BFL Software-Prudential Holdings talks break down

BFL Software Limited has called off its talks with Prudential Holdings on setting up a joint venture subsidiary in Sri Lanka.

However, the company is planning to scout for other partners for a joint venture there mainly to source cheap labour and develop offshore projects.

T O D A Y

• Telenor in India • BFL's Lanka talks fail • 'Bengal Internet' • Security survey

BFL Software CEO B V Venkatesh has been quoted as saying that both the companies have discontinued discussions that were at an advanced stage.

"Prudential Holdings, which was planning to acquire a minority stake in the joint venture, cited some problems within the company," he claims.

According to industry analysts, the proposed joint venture foray would have been a better bet for the Bangalore based BFL Software that is aiming for a turnover of Rs 1 billion during the current fiscal.

"The availability of cheap labour and the huge untapped market potential are the major factors that prompted the company to venture into that country. Apart from this, Sri Lanka is also offering some tax holidays to foreign companies that are setting up shop there," analysts say.

BFL Software had looked at two Bombay based software companies and one US firm as possible targets for acquisition.

It has, however, decided to drop these companies from its shopping list.

BFL Software was planning to acquire companies with a turnover of $2-3 million for expanding its capacities in India and abroad.

However, the company has not set any time frame on this account. It is also planning to open representative offices in East Asian countries shortly, senior company officials said.

Having six software development centres in Bangalore, the company will be setting up such units in other states during the next fiscal.

Over a span of three years, the company will also recruit over 400 software professionals to meet the growing demands in overseas markets.

For the nine months ended December 31, 1998, BFL has reported a net profit of Rs 174.7 million. The total revenue of the company stood at Rs 719.3 million during the period under review.

Recently BFL Software has set up a dedicated development centre for Lanier Worldwide Inc of the US.

The development centre, with an investment of Rs 15 million, focuses on developing technology solutions for the healthcare industry.

The centre's main target would be on processed improvement for the DOCutivity family of products marketed by Lanier's healthcare division.

- Compiled from the Indian media

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