Intense to set up subsidiary to market products

With orders for conversion of paper documents into digital documents and the compliance requirements by the income tax department on the rise, software products company, Intense Technologies Limited has embarked on a product alignment strategy.

The Hyderabad-based company recently clubbed two of its products, eTaxFile and eDoc, into volume business and is in the process of establishing a separate division to market them. In volume business, the value of the licence will be low but the number of licences that the company offers to its customers will be more.

eTaxFile, its e-TDS solution with more than 1,000 clients across the country, eliminates both tedium and inaccuracy from the process of e-filing, while eDoc is the company's entry level document management system (DMS) offering with over 750 clients worldwide.

"To have more penetration and reach, we intend to float a subsidiary or a separate division within the third quarter, and market these products through the wholesale route by signing up 50 to 100 channel partners and retail dealers, both in India and abroad, by this fiscal end," CK Shastri, managing director, told Business Standard.

Intense, which recently started its Singapore operations, is firming up plans to set up shop in West Asia in the third quarter, and in the US and Europe in the fourth quarter of this fiscal. It has a presence in the country with offices in New Delhi, Mumbai and Kolkata.

The company has appointed Raghav Sahgal, former senior vice-president (strategy) with SunTec Solutions, as chief executive officer to take it onto the global stage and steer it as a leader by 2012. It has 185 professionals and plans to scale this up to 255 by March 2008.

To fuel its growth plans, the company has started a qualified institutional placement (QIP) programme to raise $5 million (close to Rs 20 crore) and a preferential placement to raise $3 million (Rs 12 crore) at Rs 83 per share to promoters, directors and other specified parties. "We have received the shareholders' approval and the fund-raising programme should be completed during this quarter itself," Shastri said.

The almost a decade-old company, which went public in 1999, garnered revenues of Rs 4.18 crore last year. "With the ramping up of our marketing, sales, development and delivery operations, we hope to achieve Rs 30 crore in revenues this fiscal," he added.