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July 19, 1999

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High-octane code: Logisoft is betting that the automobile industry will drive on software. Joydeep Ghosh
in Bombay

Logisoft is a new company that hopes to supply software solutions to the automobile sector that has attracted several new players recently.

Logisoft is a joint venture between Mahindra Information Technology Services Limited and the TVS Group. Both partners have strong background in the automobile industry. The TVS Group is an automobile manufacturer itself and MITS is the telecom and software venture of the Mahindra & Mahindra Group, another giant in the automobile business.

Email this story to a friend. MITS will hold 80 per cent of the stake in Logisoft. TVS will hold the remaining 20 per cent.

MITS President Ulhas Yargop says, "With the entry of many new players in the automobile sector, there is a great need for good software solutions for dealer management in the market."

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He feels that even established players would need these solutions because of increased competition in the automobile sector.

Essentially, the solutions would be meant for the four-wheeler and two-wheeler segments but they could be extended to other segments.

At present, Logisoft will primarily provide solutions to the vast dealership network of the TVS Group and later it will be extended to others companies.

"We will be glad to look at opportunities where we can add value by providing software solutions but as of now we are targeting only the automobile sector," Yargop explains.

The production of these solutions will take place in Madurai.

The joint venture is a win-win situation for both companies because TVS has an extensive dealership network that would need these solutions to improve operations. This will automatically ensure business to the joint venture.

M&M, a leading player in the automobile sector has the necessary experience in this sector. "The dealer has always been the first customer for the auto companies," said an automobile industry analyst that Rediff consulted.

Software solutions for dealers will ensure better communication between manufacturing units and dealers. The TVS Group comprises 25 companies is in several different businesses.

Well-known for its two-wheeler business, it also has many other businesses like automotive components, automotive spares, computer peripherals, finance and motor dealership.

MITS, which was formed two years ago, is turning around from a bad patch. In its first year of operations it had reported a loss of Rs 4.2 million (1997-98), last year it reported a profit of Rs 2.463 million.

At present it has four subsidiaries: Mahindra Network Services, Mahindra British Telecom, Mahindra British Telecom International and Mahindra Applied Systems Technology.

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