Intel to pick up minority stake in Bharti-Telesoft
Our New Delhi Bureau (et)
24 NOVEMBER
THE Mittals of Bharti group have roped in Intel to take a stake in their software venture, Bharti-Telesoft. The world's largest processor company has therefore decided to pick a minority stake in the software start-up venture under the flagship Bharti-Enterprise.
This is the second venture in the Bharti group where Intel has taken equity, with the first being Bharti-Telespatiale, the group's Internet and VSAT venture. Intel had taken a 20 per cent equity in Bharti-Telespatiale, a subsidiary of Bharti Telecom that owns a majority 51 per cent equity stake each in Bharti-BT Internet Ltd ? the Internet venture, and Bharti-VSAT Ltd ? the VSAT venture.
So far, Intel has funded infrastructure expansion for four Indian companies other than Bharti Telespatiale ? Avigna Technologies, ESS Software, Rediff, and Network Solutions, but has so far not taken equity in these companies, according to Intel officials.
Akhil Gupta, group director (Finance), when contacted, confirmed that Bharti-Telesoft had made "strategic sale of equity to Intel where Intel would be a minority partner" but refrained from divulging any other financial or operational details. Market sources, however, believe that Intel has taken between 10-20 per cent stake in the company.
As a policy, Intel does not take any seat on the company it invests but retains rights to observe the decisions taken by the board.
S S Sinha, CEO, Bharti Telesoft, said the group has charted out a strategy to grow in the areas of telecom software and Internet services. "`We are developing a portal for Airtel's cellular operations where a customer can buy handsets, subscribe to services, get online payment details, pay online and also register complaints," said Mr Sinha. Bharti-Telesoft plans to ramp up its operations to 300 in three to four years' time.
The company has marked four areas of operation namely e-commerce and Internet, customer-care and billing, network management and switching technologies.
"We have the advantage of belonging to a telecom-centric group with operations in the cellular and basic services. Initially, the products would be developed for in-house use but will be made more generic for usage outside the group," said Mr Sinha |
