Escorts Ltd is the latest Indian company to enter the IT bandwagon.
The Rs 3,250-crore Escorts group today announced the formation of its 100 per cent subsidiary _ Esconet Services Ltd _ that would be setting up a health portal, a B2B market place, provide Internet access to mobile phone users and also become an internet service provide, all in a matter of six months.
Rajan Swaroop, who at present is the Head of Strategic Planning, Escorts Ltd, but would soon be the chief executive officer of Esconet Service Ltd, said that Esconet would initially invest Rs 25 crore in these initiatives. But over a period of time, this investment would go up to Rs 65 crore.
However, Escorts is yet to decide whether to look at venture capital funds or to finance these IT initiatives through internal accruals.
However, Swaroop mentioned that within the next six months, Esconet Services plans to formally announce all the four initiatives.
"Work on the health portal has already begun. But we would probably host the portal within the next one month or so," Swaroop said.
The health portal will provide services to those who are ailing and to the healthy. "This interactive portal will cater to doctors and patients alike," he said.
Esconet Services plans to enter into strategic tie-ups with several dotcoms and private cellular service providers for its mobile services venture.
"The contents are already there on the internet. However, for providing information on the mobile phone, you need a different platform and a wireless access protocol (WAP) gateway," Swaroop said.
Esconet plans to provide around 200 applications on WAP mobile phones. "These would include daily weather reports, railway and air booking status, stock market quotations, news etc," he added.
Esconet Services will launch an ISP jointly with Escotel _ another Escorts group company. This ISP will provide regional services through a portal specific to local markets.
Asked why Escorts is getting into the ISP business, which already seems to be crowded, Swaroop said that the company is looking at a unique selling proposition for the ISP venture.
"Our ISP project is looking at creating additional value for the consumer," Swaroop said. Esconet is also looking at creating a supply chain management implementation for its agri-machinery group. According to a company statement, all these services will contribute to enhancing customer value and reducing costs in existing businesses.
