Infotecnics sells its business to Visesh Infosystems

Visesh Infosystems Ltd, a leading ERP and software solutions provider, has
taken over the business interests of Delhi-based systems integrator Infotecnics
India Ltd. The new entity will be called Visesh Infotecnics Ltd (VIL).
Infotecnics' holding in this new entity will be just under 23 percent.

Sanjiv Bhavnani, President, Infotecnics will be the Joint MD and CEO of VIL.
In this capacity, he will run the day-to-day operations of the merged entity.
Raakesh Bhhatia, the present MD of Visesh, will be the Chairman and Joint MD.
This new company will have a total strength of around 150 employees out of which
50 have come on board from Infotecnics. All the employees of the earlier
companies will now be employees of the new entity and their roles have been
redefined to meet the new objectives set recently after this move.

This takeover is a win-win move for both Visesh as well as Infotecnics to
become a total IT solution provider. "Visesh never had a thrust in
marketing, which has resulted in slumbered growth rate. My plan is to amalgamate
the strength areas of these erstwhile companies. Infotecnics has been known for
its networking and marketing skill, which can be utilized for the optimum
utilization of the resources available," quipped Bhavnani enthusiastically.

The core competence of Visesh lies in the ERP solutions, Web solutions and
enterprise business solutions with domain expertise in finance, manufacturing
and distribution. Infotecnics' competence is network integration and
communication solutions. This takeover results in a new entity that will be able
to provide every kind of IT solution, right from system integration to business
process applications and software solutions. Accentuating the same, Bhavnani
said, "Our strengths are complimentary and I would be trying my best to
infuse the strength of these companies in a fortified manner in this new
company. Idea is to retain the present business values and build it further. I
know this will take time, but I am sure we would be able to adapt to these new
practices soon."

Both Infotecnics and Visesh have domain expertise in manufacturing,
distribution, finance, IT solutions, network security and banking. Bhavnani
would like to offer high-end systems consulting. One key focus area would be the
network security and enterprise business applications. Network security is one
area where he sees a lot of opportunity for VIL.

Besides these areas, Bhavnani has other grand plans to take this new entity
to new highs. For the year ended June 30, the two companies had combined
revenues amounting to Rs 32 crore with profit before tax standing at Rs 3 crore.
These figures are expected to go up to Rs 40 crore and Rs 4 crore respectively
in fiscal 2002-03. However, the real growth is expected in fiscal 2003-04 when
the topline should touch Rs 70 crore with profits amounting to Rs 10 crore.

Asim Raina & Shweta Khanna