Calcutta-based RS Software and New Jersey-based Hanover Direct Inc have agreed to set up a new 40:60 joint venture to develop software, systems and programs for e-commerce applications in direct marketing, retail industries and general merchandising.
The US company provides branded merchandise to consumers through both print catalogs and web sites, and also provides a range of internet, e-commerce and fulfillment services to businesses. RS Software is one of India’s leading software developers.
The partners are working on how to structure the new company and hope to have the agreement finalized by June. The name and location of the company, the composition of its board and the appointment of a chief executive have all to be decided. RS Software managing director Rai Jain said initial thinking calls for the venture to be listed on Nasdaq.
The venture will allow RS Software to offer the Hanover portfolio of Web initiatives with the scaleable resources we need, including creative marketing, web site creation, maintenance and management, Jain said. In particular, the joint venture will focus on Hanover’s common system platform, which can be applied to a range of products, performing the full suite of services required by e-commerce companies, he said.
Our operating partner is a US market leader in Internet-based direct selling, and we see a huge opportunity in India, with the number of internet connections expected to jump 10-fold from 800,000 now to 8 million by 2002, said Jain.
