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Salora International Limited, has formed a strategic alliance with Logic ++, USA, a high-end R&D company based in the Silicon Valley, to develop cost-effective Internet solutions. Salora International plans to invest $ 2 million in the equity of Logic ++, subject to RBI and other statutory approvals.
The tie-up is a strategic step by Salora International to consolidate its foray into information technology.
In the last few months Salora has promoted three IT ventures: Jadoonet which provides Internet access through the television, Encompass Software, which develops web enabling software solutions and FX Infotechnologies, which distributes IT hardware through various channels. The tie-up with Logic ++ is a major step in this direction.
Speaking about the tie-up, Sushil Jiwarajka, joint managing director, Salora International, said, "This alliance will take us one step forward in our effort to provide end-to-end solutions in the arena of Internet-based e-commerce. While Jadoonet, Encompass Software and FX Infotechnologies will provide the front-end solution to the Indian consumer, this tie-up will complete the picture by providing the middle- and back-end solutions. Using the same core technologies, Salora will have access to several high-end products to respond to new market opportunities".
Logic ++ has has about four years' experience in the field of R&D. The company's core competency in the USA lies in system architecture and logic design, besides developing object-oriented real-time application software.
In India, the company's core competencies encompass communication systems and software as well as content creation for websites. Logic ++ has successfully completed two turnkey R&D projects for Ricoh, which have led to the development of new state-of-the-art office automation products.
Now Logic ++ is ready to launch its own products to cater to a wide-range of IT markets.
Company sources emphasised the alliance is aimed at addressing some of the common problems that plague the growth of e-commerce infrastructure in the country.
According to a company spokesperson, "The available resources in the market make costs and connectivity prohibitive to most new entrants. Lack of reliable, fast and low-cost Internet access, inadequate infrastructure resulting in routing congestion, underperformance of low-cost servers and high establishment and operational costs pose major barriers to the growth of e-commerce."
Talking about the synergies between the alliance partners, Sudhin Mishra, president and CEO, Logic ++, USA, said, "Salora with its long experience in sourcing, production and marketing and successful joint ventures with multinational companies, is the right vehicle to bring into this market the various high-end products which Logic++ has developed."
Sushil Jiwarajka of Salora International added, "Under the circumstances, Logic ++ is the ideal partner for Salora as we share the same vision and philosophy and complement each other's strengths."
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