Date:08/06/2004 URL: http://www.thehindubusinessline.com/2004/06/08/stories/2004060801060700.htm

Back Allied Digital in joint venture with Lanka co

Our Bureau

Mumbai , June 7

ALLIED Digital Service plans to form a joint venture with CNT, a Sri-Lankan firm to manufacture firewall appliances in India.

The joint venture would commence manufacturing appliances licensed by Check Point. The formal launch of these products is slated by mid-July.

Check Point Software Technologies is the worldwide leader in Internet security and provides Secure Virtual Network (SVN) architecture and other infrastructure that enables secure and reliable Internet communications.

The company has a 62 per cent market share of the global Virtual Private Network (VPN) market.

"The joint venture will be a distribution company with the new entity Allied-CNT Technologies distributing appliances for the domestic market and the SAARC region. We would also manufacture appliances licensed by Check Point. In our first year, we expect the joint venture on the appliance front to notch up revenues of $5 million in exports and $1.5 million from the domestic market and $ 5 million in revenues from distribution," Mr Bimal Raj, CEO, Allied Digital, told Business Line.

Most of the firewalls sold in India are imported, making this manufacturing venture a first of its kind.

High-end networking equipment such as firewalls is used by enterprises to maintain security and integrity of their networks.

Due to the heavy customs duty structure on hardware in India, the landed cost of appliances was very high here.

Allied-CNT would distribute products from RSA, StoneSoft and Checkpoint, according to Mr Raj.