• PAGE ONE
• INDEX
• HOME

Mold-Tek opens facility, seals pact with US firm

Our Bureau

HYDERABAD, Dec. 8

MOLD-TEK Technologies Ltd (MTL), the Hyderabad-based Rs 52-crore company with interests in manufacture of plastic packing containers with strengths in CAD/CAM and development of software solutions, has opened its new software development centre.

The centre, with infrastructure facilities in a 5,000 square feet area in White House on Begumpet Road, was formally inaugurated by the Chairman of the US-based Indotronix International Corporation, Mr Babu Rao Mandava.

The MTL Managing Director, Mr J. Lakshmana Rao, said that the company's efforts on finding suitable partners to quickly establish in the field of information technology have borne fruit.

``A major breakthrough is the acquisition of a four-year old US-based IT company, American Consulting Corporation (ACC), in a cash-cum-stock deal,'' Mr Rao said.

``This US company has many blue-chip clients which include Progressive Insurance, Weirton Steel Corporation and Ernst & Young. We expect the process of acquisition to be completed by the year-end. ACC is expected to achieve a turnover of $ 1.2 million du ring the current calendar year.''

The MTL board has adopted a resolution to issue three lakh equity shares to the promoters of ACC at a price of Rs 37 per share and also pay an amount of $2,00,000 in two equal installments.

The core promoters of ACC would continue to work with Mold-Tek for a period of one year. MTL has also obtained the approval of its shareholders for the acquisition of the US company at a recently held annual general meeting.

According to Mr Rao, the Information Technology Division at Hyderabad is currently recruiting additional manpower and also imparting training.

``We plan to add 50 more software professionals before the year-end to our current strength of 20 professionals. Further, we expect ACC to post a turnover of around $5 million during next year.''

The company has also entered into a long-term business relation agreement with the US-based $60-million Indotronix International Corporation (IIC).

An agreement to this effect was signed by Mr Mandava and Mr Rao on Friday.

IIC, based at New York with a strength of over 500 software professionals, has some of the Fortune 500 companies among its clientele which include IBM, AT&T, Bayer, BEL, HP and Motorola.