GTech Delegation to visit Bavaria to explore ventures

Tvm: A delegation from IT Companies in Kerala represented by the Group of Technology Companies (GTech) would soon be visiting Bavaria to explore and enhance cooperation. Kerala and Bavaria also reinforced their economic and trade relations in Trivandrum and reverberated the need to develop stronger and deeper relations especially on the IT front.

These were the highlights of the session on Explore Bavaria: New Business Opportunities organised by GTech in partnership with the Bavarian ministry of Economic Affairs, Infrastructure, Transport and Technology at Technopark, Trivandrum today. A similar session was held at Infopark Kochi yesterday.

Making a presentation, John Kottayil, Executive Director, State of Bavaria - India Office said, “Some 65 Indian companies including TCS, HCL, iGate, Wipro and NeST (from Kerala) have already set up their offices or manufacturing units in Bavaria with an investment of more than USD 900 million. Bavaria, the largest German state, is virtually at the centre of Europe and provides a gateway for Indian businessmen to explore the EU market”. Inviting investors to the 19 manufacturing clusters in the state, all assistances were provided to potential investors. Bavaria is the heart of the hi-tech industry in Germany in the areas such as IT, electronics, aerospace, automobiles, mechanical Engineering and telecommunications.

Anoop P Ambika, Secretary, GTech said that the Kerala with its core strength in the Information Technology sector is well positioned to tap the market opportunities in the state of Bavaria. He also requested the Bavarian Authorities to facilitate partnerships and joint venture projects for the small and medium Enterprises from the state.

Friedrich Rahn, Deputy Consul General of the Federal Republic of Germany in Bangalore and Mervin Alexander, CEO, Technopark also spoke about exploring new opportunities in Bavaria and vice-versa.

Bavaria explores business opportunities from Kerala IT Cos

Kochi: As part of an initiative to help IT Companies in Kerala identify new business opportunities, the Group of Technology Companies (GTech) in partnership with the Bavarian Ministry of Economic Affairs, Infrastructure, Transport and Technology organised a session on ‘Explore Bavaria: New Business Opportunities’ at Infopark Kochi today.

The second session in this series would be organised at Technopark Trivandrum on October 15, 2010. Friedrich Rahn, Deputy Consul General of the Federal Republic of Germany in Bangalore and John Kottayil, Executive Director of Invest in Bavaris, State of Bavaria - India Office are attending these sessions. While Friedrich Rahn gave an overview of the Economic & Business scene in Germany, John Kottayil spoke about the Market Opportunities in Bavaria for IT Companies.

Talking to Kerala IT News, Binu Sankar, CEO, GTech said, “This is an initiative of GTech to promote the Small and Medium IT Companies in Kerala to a larger audience. These sessions would help the companies in Infopark and Technopark in exploring new business opportunities and joint venture projects in Bavaria.

CEO’s and representatives from 25 companies in Infopark attended the session today. “The response to the session today was very good and we had a very interactive session. We expect a similar response at Technopark also”, he added.

Bavaria ranks among the most powerful economies in Europe. Bavaria, with its gross domestic product (GDP) of 445 billion Euros, is ahead of 21 of the 27 member-countries of the EU. Bavaria, the largest state of the Federal Republic of Germany and also the No.1 high tech location in Germany, is the Technology, Engineering and Automobile hub of Europe.

Taking Wings from Kerala

A Financial Express Feature on Mr.V K Mathews

VK Mathews is a rare individual—one of the very few who dared to show off his entrepreneurial skills in Kerala. In fact, his friends thought he was nuts to leave his plush job in Dubai with Emirates where he spent more than a decade, to return to his roots and start an IT firm against all odds.

IBS, the company he founded in 1997, today is Kerala’s best known IT company and credit for that should go to this man who took a big chance with his career. “I was very happy with Emirates, where I was provided with a luxury villa, and I also had the choicest of cars with me. At that time I was just around 37 years and most people of that age would have been content,” says Mathews, who has a post-graduation in aeronautical engineering from IIT Kanpur.

It’s not that he always wanted to be an entrepreneur. But when he saw the big opportunity waiting to be tapped in the software space of the transportation industry, especially aviation, he could not resist the temptation. Today IBS is one of the world leaders in transportation software and the vast majority of global airline majors are its customers. “To be honest, I was never after amassing wealth. Even my decision to become an entrepreneur was not charged by that. But I always wanted to do my best in whatever I was doing. That led to the decision.”

Soon after passing out of IIT Kanpur, he did something many wouldn’t. He started teaching computer science to army officers. “I found that quite tough to do. The subject was indeed new to them, and they were also more interested in warfare and artillery.” He joined the IT division of Air India in 1981. That was the start of a successful career. Mathews played a key role in the implementation of its computerized passenger services system globally. It may seem a simple thing now, but 30 years ago it was an achievement.

Shortly he got a good offer from Emirates and he decided to grab the opportunity to get the international exposure he desired. As general manager (IT) of the Emirates Group, Mathews was responsible for formulating and implementing software strategies for Emirates’ global operations. “Emirates were then a start-up company. But the chairman had great ambitions to make the airline one of the worlds best, even back then. Working with Emirates gave me all that I needed.”

That was why everyone was shocked when he decided to become an entrepreneur. “My friends did not think it was a wise decision. So I never told them that I was considering Kerala as the headquarters of my venture. If I had told them so, they would have really discouraged me. I first went to Bangalore and then Chennai.

But after I visited the Technopark in Thiruvananthapuram, I instantly took the call to set base here.”

Mathews invested Rs 1.75 crore from his pocket and then raised a few more crores to kick start his dream. Initially IBS won contracts through Mathews’ personal contacts. But he knew it was important to develop internationally acclaimed mission critical systems to compete globally.

Emirates and Swiss Air became his customers and things started to roll smoothly, till the dotcom bubble burst. Then came the tragedy of 9/11 and the aviation industry was facing its biggest crisis. His customers like Swiss Air collapsed financially and he started doubting the business potential of his venture. He had two options—one was to wind up operations and save some of the profits, or plunge into the business neck deep and take a chance. He opted for the latter.

Today he is reaping the benefits of that decision. The Kerala government is pinning its hopes on IBS becoming a global software leader and improving the image of the state. “Kerala has to develop a good physical and social infrastructure. That would be key for the development of the software industry in the state. It is now difficult to attract senior management talent from other big cities to Kerala. But the talent we have is world class and there are no worries on that count.”

The company today has revenues in the range of $80-100 million and is planning an IPO in 2012. Along the way, Mathews has gone in for a few strategic acquisitions and today IBS offers software products in areas of airline operations, airport management and airline cargo, oil and gas logistics, cruise and hospitality management along with ocean transportation. General Atlantic has invested $60 million in IBS. And that’s the biggest PE investment made into a Kerala-based company. Its new generation cargo management solution i-cargo is making waves worldwide. IBS has arrived on the international scene.

Today Mathews is an advisor to the government of Kerala in areas of IT, management and education and a member of the state’s IT advisory board. He is the president of GTECH, a strategic grouping of IT&ITES companies in Kerala, which is modeled on the lines of Nasscom.

His ambition now is to make IBS the number one company in the travel, transportation and logistics (TTL) software space globally. “By year 2020, I want to achieve that dream. I believe we have all the tools for it.”...

Kerala IT firms eye Nordic markets

BS Reporter

To help the small and medium IT enterprises in Kerala scout for business opportunities, the Group of Technology Companies (GTECH) has identified Denmark, Sweden, Norway and Finland as potential growth markets in the initial stages.

These countries face a demographic challenge and cost pressures to sustain their economic growth which is dependent on cutting edge technology and innovation, it said.

It identified the emerging sectors like clean technology, health and life sciences as thrust areas, and said Kerala IT industry could play a critical role in sustaining the competitiveness of these economies by offering cost competitiveness and quality solutions.

GTECH has drawn up a structural framework for deeper engagement with Denmark and Sweden. As a first step, government delegations from both these countries visited Technopark and Infopark recently to showcase and identify the potential business areas for the Kerala-based IT companies. The delegation mooted the idea of GTECH taking a delegation of CEOs to the Nordic countries to establish joint venture partnerships to tap buisness opportunities.

“The UK and the US markets are the current targets for the Kerala IT Industry. But with the economies of these countries slowing down, there could be a cut on the IT spend of companies located there. The need to look at newer markets has never been greater,” said Anoop Ambika, secretary, GTECH. “The Scandainavian countries present a fantastic opportunity for the SME's in Kerala to tap.”

IT sector to extend operations to Scandinavian region

Special Correspondent

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GTECH to help State's enterprises find opportunities in Sweden, Finland, Norway and Denmark.

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Thiruvananthapuram: The IT industry in Kerala is preparing to extend its footprint to the Scandinavian region of Europe for identifying fresh business opportunities and accelerating growth.

The Group of Technology Companies (GTECH) has unveiled a strategy to help small and medium enterprises (SME) in the IT sector scout for new business opportunities in Scandinavian countries.

Lull in U.K., U.S.

“The UK and the US markets are the current targets for the Kerala IT industry. But with the economies of these countries slowing down, there could be a cut on the IT spend of companies located here. The need to look at newer markets has never been greater. The Scandinavian countries present a good opportunity for the SMEs in Kerala to tap”, says Anoop Ambika, secretary, GTECH.

The strategy proposes to target Denmark, Sweden, Norway and Finland in the initial stage.

These countries face a demographic challenge and cost pressures to sustain their economic growth which is dependent on cutting edge technology and innovation.

According to GTECH, the IT industry in Kerala could play a critical role in sustaining the competitiveness of these economies by offering cost competitiveness and quality solutions. The new emerging sectors like Clean Technology, Health and Life sciences have been identified as the thrust areas.

First step

GTECH has formulated a structural framework for deeper engagement with Denmark and Sweden. As a first step, a delegation of government officials from these countries visited Technopark and Infopark recently to identify the potential business areas for the Kerala-based IT companies.

Shanker Subramaniam, Senior Investment Manager, ‘Invest in Denmark' and Srikant Illuri, Country Head, ‘Invest in Sweden,' both investment promotion agencies of the respective countries, were part of the delegation.

The delegation mooted the idea of GTECH taking a team of CEOs from Kerala to Nordic Countries to establish joint venture partnerships and identify business opportunities. “We have plans to bring in government representatives from some more countries in the near future,” says Anoop Ambika.

GTECH looking at Nordic countries for opportunities

Kerala's IT industry could play a critical role in sustaining the competitiveness of these economies, by offering cost competitiveness and quality solutions.

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Our Bureau

Thiruvananthapuram, Aug. 16

The Group of Technology Companies (GTECH), Kerala, has unveiled a unique strategy to tap market opportunities in the Scandinavian region of Europe.

This will be part of the GTECH agenda to help small and medium (SME) IT enterprises in the State scout for business opportunities and expand their reach, an official spokesman said here.

The strategy is part of a vision to identify potential growth markets for Kerala's IT industry. This is in tune with the broad objective that GTECH has set out to achieve - accelerated growth of the IT and ITeS sectors. GTECH proposes to target Denmark, Sweden, Norway and Finland in the initial stage.

According to the spokesman, these countries face a demographic challenge and cost pressures to sustain economic growth, which is dependent on cutting-edge technology and innovation.

Kerala's IT Industry could play a critical role in sustaining the competitiveness of these economies, by offering cost competitiveness and quality solutions.

Emerging sectors such as clean technology, health and life sciences have been identified as the thrust areas, the spokesman added. The Scandinavian region has also been witnessing high ICT adoption and research and development investments on IT infrastructure, that provide a unique opportunity for the IT Industry.

GTECH has already drawn up the structural framework for deeper engagement with Denmark and Sweden.

As a first step, Government delegations from both these countries visited Technopark-Thiruvananthapuram and Infopark-Kochi recently, to identify potential business areas for resident IT companies.

The Danish Government was represented by Mr Shanker Subramaniam, Senior Investment Manager, Invest-in-Denmark, and the Sweden team by Mr Srikant Illuri, Country Head, Invest-in-Sweden.

The visiting delegation proposed the idea of GTECH taking a delegation of CEOs to the Nordic countries, to establish joint venture partnerships to tap business opportunities.

According to Mr Anoop Ambika, Secretary, GTECH, the UK and the US markets are the current targets for the Kerala IT Industry.

However, with the economies of these countries slowing down, the IT spend of companies located there could go down.

There is an urgent need to explore new markets, he said. “We propose to bring in Government representatives from some more countries in the near future,” Mr Ambika added.

Dutch IT Companies doing well in Kerala

IT Companies from the Netherlands are doing well in Technopark, Trivandrum. This was one of the revelations that came during an interactive session today in Trivandrum with Ms. Marijke van Drunen Littel, Consul General of the Netherlands, Mumbai. ARS and RickshawSoft are two of the companies that shared their experiences in Kerala and particularly, Technopark.

ARS Software is a subsidiary of ARS Traffic & Transport Technology BV, The Netherlands and has been in Technopark since 2001. ARS provides Intelligent Transport Systems (ITS), services and solutions to major traffic and transport related clients in Europe. RickshawSoft Smart Solutions, a subsidiary of RiksjaSoft BV, The Netherlands is a fairly new entrant having set up their shop about nine months back and provides Retail software, solutions and services to clients including big retail organisations in Europe.

Sharing his experiences Martijn van der Spek, MD, ARS said that doing business and working in India for the last nine years has been really good and Kerala is like a second home for him. They are very impressed with the facilities in Technopark as with the talent available here.

Wim Krämer, CEO, RickshawSoft said the availability of cheap and highly skilled manpower in Kerala is the biggest attraction for European companies to come here or to do business with IT companies here. According to him, a company can get four employees here for the cost of one in Europe. (Btw, it looks like the name of his company is truly inspired by India!)

Hugo Messer, CEO of Bridge Outsourcing BV who started Bridge India, a web development and web designing company in Kochi shared his experiences in Kerala with Kerala IT News, “For our company, the loyalty, high skills and hard working attitude of people from Kerala, bring a lot of advantages. Before starting in India, one of the sounds that we often heard was of high attrition rates in India. Since we started in 2008, not a single employee has left our company deliberately." He would certainly recommend more companies from the Netherlands to set shop here. “Kerala is a very good choice at the moment as salaries are still much lower than in the Tier 1 cities, people are very friendly and living in Kerala is a pleasure”, he added.

Earlier Ms. Marijke spoke about the immense potential that the Netherlands offer for Indian Companies. She also spoke about the various projects by the Dutch in India and specifically in Kerala.

The session was organised by the InKEL forum of Excellence in association with the NIPM Trivandrum Chapter. T Balakrishnan IAS, Principal Secretary, Department of Industries & Commerce, Govt. of Kerala; John Mathai, Chairman, Public Sector Restructuring and Internal Audit Board (RIAB); Dr. G C Gopala Pillai, MD, Infrastructures Kerala Ltd. (InKEL); Binu Sankar, CEO, GTech were among the many CEOs and top officials from companies who attended the session.

Denmark to welcome IT cos from Kerala

Denmark is all set to roll out the red carpet for IT companies from Kerala planning to set shop there. A session on ‘Market Opportunities in Denmark’ was organised by the Group of Technology Companies (GTech) and Technopark in partnership with the Invest in Denmark organisation under the Ministry of Foreign Affairs of Denmark at Technopark last week.

Shanker Subramaniam, Senior Investment Manager, Danish Trade Commission spoke on the market opportunities for IT companies from Kerala in Denmark. Taking the session, Shanker said, “Denmark is an ideal location for SME from Kerala to set up their European base (Nordic hub) as Denmark is centrally located among the European countries. The shortage of skilled labour and the less investment required to set up an office in Denmark are the points which should attract Indian companies”.

Companies can start small and smaller companies can build relationships better. Clients in Denmark are demanding but don’t change vendors once selected. He also gave a brief presentation on Visas, Work and Residence permits in Denmark. Acoustics, IT services and Logistics are the industries that offer maximum opportunities in Denmark. Over the last few years 105 Danish companies have established themselves in India.

Bahrain beckons IT Cos from Kerala

Bahrain, one of the fast growing economies significant to global firms in the Gulf market is beckoning IT companies from Kerala to set up shop there as a huge market opportunity exits for these companies. This was the highlight of a session on Investment and Market Opportunities in Bahrain organised in Technopark last week by the Group of Technology Companies in Kerala (GTech) in partnership with the Economic Development Board (EDB), Bahrain and Technopark.

The key speaker for the event was Ms. Dharmi Magdani, Country Manager - India, EDB Bahrain. EDB aims to enhance Bahrain’s economy by developing an economic growth strategy, enhancing the business environment through reforms, and promoting investment.

Bahrain offers easy and liberal visa policies along with the most liberal tax regime in the Gulf with no corporate income tax, no personal income tax and no wealth tax or tax on capital gains among other reliefs. Companies are allowed 100% foreign ownership with no ‘free zone’ restrictions. The country has an advanced legal environment based on British Common Law System. Bahrain offers a cost efficient business base and also the most educated, skilled workforce in the Gulf.

According to Binu Sankar, CEO, GTech, “There is immense opportunity for Kerala Companies in the areas of e-governance, Tourism and IT Training. Two to three companies might set up a representative office in Bahrain soon.”

According to Gartner, the Information and Communication Technology (ICT) Market in Bahrain is expected to reach $ 375 million by this year which is driven by products and services from the Government and the Private sector.

Around 23 companies participated in this session chaired by S Rama Rao, former President, GTech. Mervin Alexander, CEO, Technopark and Anoop P Ambika, Secretary, GTech were among those present.

Do not reduce width of highways: GTECH

Thiruvananthapuram: The Group of Technology Companies (GTECH), a strategic grouping of software companies in the State, has proposed that Kerala use Central funds to compensate and rehabilitate the families that would be displaced for widening the National Highways to 45 metres.

A pressnote issued by GTECH here on Thursday said that reducing the width of the NHs would not be in the long-term interest of the State or its citizens. The National Highways Authority of India (NHAI) has approved the expansion of about 700 kms of highways, at an estimated investment of Rs.10,000 crore, over a 30-month period. However, politicians in Kerala, cutting across party lines, insist that the width of the highway should not exceed 30 m (as against the NHAI standard of 60 m), citing the impact of land acquisition on the affected people. This has put the entire project at risk and the State could lose the approved funding and a project vital to its needs.

Arguments

“Whilst rehabilitation is the most important aspect that the State government should focus on, there are also a lot of factually incorrect arguments on the impact of the expansions. The total number of people that will be affected by the land acquisition will be less than 50,000, according to the study conducted by NHAI, whereas those against the highway expansion claim that it is 25 lakh. The good thing is that there are plenty of funds already available from the Central government for acquiring land at even 2.5 times the market price,” said V.K. Mathews, president, GTECH.

Paradox

It was unfortunate and, in a way, paradoxical that when the whole country was asking for more funds for building more transportation infrastructure, in Kerala, the only topic on which both the government and the Opposition coming united was to block the infrastructure development, he said.

“What is required is a mass awareness programme to bring out the advantages of 45-m NHs to the citizenry of the State,” Anoop Ambika, secretary, GTECH said.

Need for vision

The Trivandrum Residents Apex Council (TRAC) has also opposed the all party move to reduce the proposed width of the NH road corridors and do away with the BOT route.

A pressnote quoting TRAC president Ramakrishnan Nair and secretary K.T. Roy said road development should be finalised with a long-term vision covering 20 to 30 years. “Considering the increase in vehicle density, 30 m width would be inadequate. A median of 5-m width will be needed to accommodate concrete pillars for a flyover needed for future development.”