TCS, UGS may form JV

MUMBAI, SEPT 15: Software powerhouse Tata Consultancy Services is likely to enter into a joint venture with 400 million Unigraphics Sol...

MUMBAI, SEPT 15: Software powerhouse Tata Consultancy Services is likely to enter into a joint venture with 400 million Unigraphics Solutions UGS, a subsidiary of infotech major Electronic Data Systems. If the partnership works out, this will be the first joint venture for TCS, a closely held company owned by Tata Sons. UGS is listed on the New York Stock Exchange NYSE has a 20 per cent public holding.

The details are still under discussion and are expected to be worked out in greater detail when Raj Khushru, head of UGS Product Data Management division, comes to India later this year. Although Khushru is not on the company8217;s board he has considerable authority and influence in the company, senior officials said.

The joint venture has been under consideration for close to two years with partnership spanning over a decade. The US-firm, which develops solutions for the CAD/CAM and PDA segments, has set up a development centre in association with TCS at Secunderabad in Andhra Pradesh for its Unigraphics product. The development centre currently employs 120 people.

quot;It is still very much there,quot; Toni Reszka, sales manager, distributor territories of UGS said, when asked if the joint venture plans had fizzled out. The company8217;s NYSE listing had temporarily put it on the backburner.

Rezka does not envisage any problems in getting shareholder approval for the joint venture which will primarily be for product development. quot;It depends on the investment,quot; he said. TCS is expected to hold majority stake in the venture. The exact percentages are still to be worked out.

Apart from India, UGS has development centres in North America, United Kingdom, Germany and Japan. It recently set up another development centre in the country with TCS at Pune for Solid Edge, its mid-range mechanical CAD product. The product is especially focused on countries like India which have a large number of small and medium enterprises.

Roadshows for Solid Edge version 7, the newest version, will kick-off in Mumbai on Thursday. The solution runs on Windows NT is targeted at companies who want to upgrade from 2-D modelling to 3D-modelling tools. Priced at Rs 2.5 lakh it will be launched will a mega marketing initiative billed by Financial Times to be the largest by a CAD/CAM player so far.