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Amit Mitra

Mumbai , July 16

HCC-Infotech Ltd, a wholly-owned subsidiary of engineering major Hindustan Construction Co Ltd (HCC), which is engaged in providing integrated software solutions for infrastructure industry worldwide, has put up on its drawing board a proposal to expand its business operations by setting up subsidiaries in Europe and the Gulf. The proposal could materialise within the next 20 months, company sources told Business Line.

The company will be seeking to market its software product, eConstruct suite, for the construction and engineering industries in those countries. It is upbeat about the prospects of marketing the product, especially with the construction industry, estimated at $3.4 trillion, growing at a steady clip. Also, after recently achieving the CMM level III standards, which have a worldwide recognition, its value proposition in the construction software market has significantly enhanced.

The company is particularly keen on making a foray into Europe and Gulf, as its US subsidiary, HCC Infotech Inc, which had started operations from April last year, has not been doing well in the wake the economic downturn last fiscal. With the company's US subsidiary reporting a loss of $30,159 last fiscal, it has decided not to make any major investments in business promotion and marketing. "We will be utilising this period to develop stronger relationship with engineering and construction companies in the US. The company has made a mark in the US and it is now a member of many prestigious associations like American General Contractors (AGC), Boston Society of Civil Engineers (BSCES)," the company sources said.

According to the sources, HCC-Infotech, which notched up an income of Rs 6.77 crore last fiscal as against Rs 5.83 crore in the previous year, is now in the process of implementing its ERP solution, eConstruct suite, in its holding company, HCC Ltd, as the economic scene in the western countries is not encouraging.

As part of its restructuring, which is cardinally aimed at remaining focussed in its core business of software development and services for the construction industry, the company has decided to close down all support functions specifically created to manage its holding company, HCC Ltd. The company has closed down several cells, like the computer hardware/software networking cell, Foxpro based system support cell, IT equipment procurement cell, animation cell and recruitment cell. "With clear focus on its business goals and strategy, the company is confident of achieving a healthy growth rate in the current fiscal," an official said.

Being in the business of IT, the company is engaged in research and development of new technologies and is planning to upgrade the existing infrastructure to meet the new business needs.

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