CS Software to enter thermodynamics space

CS Software Enterprise Limited, a provider of support processes, engineering and IT services for various functional and technical domains, plans to enter the thermodynamics space through strategic tie ups and synergies with leading players in the US.

"Thermodynamics offers higher value of services and more realisation. Moreover, there are only a few players operating in this space. We are looking for long-term tie ups with potential partners, who have a proven track record in the area, to add impetus to our plans to move up the value chain in the aerospace domain. We are currently studying a couple of companies and should be foraying into this arena within a year," Ravi Vishnu, chairman and managing director, CS Software, told Business Standard.

The publicly-listed company, headquartered in Hyderabad, had recently acquired 51 per cent stake in Reps Resources Inc, a US-based entity that services to industries in the aerospace sector for $300,000 (around Rs 1.4 crore) through a mix of debt and internal accruals.

This acquisition brought around eight clients of Reps Resources in the aerospace sector into CS Software's fold, besides providing access to other preferred vendors in the US. With this, CS Software clients now touch 12 in this space.

"The majority stake acquisition in Reps will provide us an effective route to expand our footprint in the US market along with technical expertise, besides enabling us to offer a significant cost advantage by bringing more work to India. With this acquisition, we are also planning to focus on minor players to offer services, including manufacturers of chartered planes in the US and Canada," he added.

CS Software provides design, engineering analysis services and maintenance, repair and overhaul (MRO) solutions to the aerospace industry.

It had recently bagged orders from a leading supplier of jet engine test cells, data acquisition and control systems and jet engine test equipment belonging to France-based Safran Group to provide the latter high-end engineering services. The market for such services is currently pegged at $32 billion.

According to Vishnu, the company forecasts around 75 per cent growth in revenues this financial year, compared with Rs 14 crore last year. "This is expected to be mostly driven by the increasing inflow of orders to our existing divisions including the utilities services for the power sector," he said.

The company had bagged orders from the Maharashtra State Electricity Distribution Company Limited last year to implement electricity billing in Nashik for an estimated value of Rs 14.20 million.

Its agreement with Dakshinachal Vidyut Vitran Nigam Limited relating to indexing of new customers, billing and collections for the Mathura city too was renewed in 2007.