Advanced Synergic plans to go on equity prowl in US
(Economic Times 28/4/2000)

The 12-year-old Bangalore based ASM (ASM) plans to take small equity stakes in US-based companies, whose businesses are similar to those of its own. ASM, a Provider of software solutions for the enterprise, said this would help it ramp up its growth in the US.

The profile of the companies that it will invest in would include system integrators (SIs) and application service providers (ASPs), said Mr. Rabindra Srikantan, managing director, ASM. "We expect to invest in one company within next six months time frame", he said.

Mr. Srikantan said the equity stake route was more convenient as buying out companies, besides being expensive, would involve major cultural issues.

ASM, which has wholly-owned subsidiaries in the US and Singapore, is stepping up its focus on the US market. Towards this, it plans to put in place an advisory board that will comprise of professionals from various vertical segments.

"We will leverage on the the contracts of the advisory board members to get new clients in the Us and also orders that provide a significant revenue stream", he said. ASM also plans to induct a few IT professionals on its board so as to utilize their technology expertise, he added.

Enterprise information portals - which help broaden market opportunities for content management and enterprise application integrator, an open architecture based software that reduces time and costs to develop, deploy and manage multi-tier distributed applications are some of the enterprise solutions that ASM has developed.

Apart from this, it also provides Web-enablement and Web development services and has created e-Synergy - a product cum solution to integrate enterprise solutions with customer applications.

The demand for enterprise solutions from companies in the US has shot up rapidly. Mr. Srikantan said this is the reason why ASM expects to see a substantial growth in business in the next few years. In 1998-1999, the combined revenue of ASM was Rs. 10.8 crore.

The results for 1999-2000 - which are to be shortly announced - have been very encouraging, he said. ASM is listed in Mumbai and Bangalore stock exchanges.