Vortal for cutting tools

By Our Special Correspondent

BANGALORE, JUNE 28. Hittco Precision Tool Technologies Ltd., a Bangalore-based manufacturer of cutting tools for the engineering industry, is now planning to exploit the Internet space by launching a B2B vortal for marketing cutting tools and related consumables. Accordingly, the company has now renamed itself as Hittco Online Technologies Ltd. (HOTL).

Briefing the press in Bangalore today, Mr. Sidharth Bhandari, Managing Director of HOTL, said the vortal - toolconsume.com - will have several value-added features such as e-payment, online authentication, logistic services and insurance facility. To be fully set up within the next two years, the vortal will involve an investment of around Rs. 12 crores.

Mr. Bhandari emphasised that unlike other dotcoms, toolconsume.com was first getting supplier participants before approaching buyers. The revenues are expected to mainly arise from transaction charges, although some income may also flow from renting out space on the vortal for suppliers to exhibit their wares and services.

A California-based Internet based solutions provider, Global e Tech, headed by Mr. Vijay Kumar Srinivasan, will be supplying the technology for the vortal and has decided to take a 2 per cent equity stake in HOTL.

HOTL had a sales of Rs. 3.81 crores and a profit after tax of Rs. 30 lakhs in the year ended March 31, 2000. This was entirely due to its own manufacturing business. With addition of the online trade business, the company expects its revenues to swell to Rs. 36 crores by 2005, with a PAT of Rs. 18 crores.

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