division of Ramco Industries is being spun off as a separate
company, Ramco Systems Ltd., with effect from 1 April
1999. This plan has been cleared by the company''s board
and is pending approval from the Madras High Court, the
Reserve Bank of India, financial institutions, debenture
trustees, banks and shareholders, which are expected to
be obtained by the end of the year.
was established in 1989 to develop and market high-end
enterprise application solutions. Its best known product
is the enterprise resource planning software package called
Marshall, which won plaudits from none other than Bill
Gates when he was in India. This application is now installed
in over 500 companies, according to the company.
of this move, Ramco Industries will receive shares in
Ramco systems in the ratio of 1:1. The equity base of
the new company and Ramco Industries'' value of holdings
in the company, remain undecided as of now. However, no
fresh equity is planned in the near future, while about
16 per cent is to be allotted for employees'' stock options.
new company is targeting sales of about $40 million in
1999-2000. It is to acquire the software subsidiaries
in Switzerland, Malaysia, Singapore and the US from its
parent company for a price that is still undecided. These
subsidiaries are estimated to be worth Rs. 72 crore.
is now involved in developing a software technology framework
for software development that will be used in net-based