Korea's SKC & C in JV talks with IT cos

NEW DELHI: Korean IT and telecom major SKC&C is in talks with top Indian IT companies Infosys, Sify and Tech Mahindra for a joint venture. The Korean company has expressed interest in entering the Indian market through a possible equity partnership with an Indian company. It is also open to acquisitions, company sources said.

SKC&C is keen on entering the Indian market as the country’s booming telecom sector would require sophisticated software after the roll-out of 3G services.

The company’s CEO, who visited India recently, had discussions with representatives from the three Indian companies for picking up equity stakes. “We had discussions with Infosys, Sify and Tech Mahindra,” company’s CEO SK Yoon told ET.

The company has earmarked about $100 million for its India entry. Investments could go up depending upon the valuation of the company with which it would form a JV, Mr Yoon said.

When contacted, an Infosys spokesperson said, “As a matter of policy we do not comment on market rumours.”
Company sources said that SKC&C may also look at entering the Indian market through the mergers and acquisitions route. When asked about the company’s possible acquisition plans, Mr Yoon said, “We have aggressive plans for India and you will see us in the market discussing about the JV or acquisition shortly”.

He said the company is looking at India as a possible hub for its expansion plans in the Middle-East and Africa. The company also plans to participate in the e-governance project of the Centre as it has expertise in such projects back home. However, talks have not been initiated with the Central government on this issue yet.

“We plan to initiate discussion with the government soon,” Mr Yoon, who was on his first official trip to India, said. SK C&C is planning to start its application delivery and data centre in Delhi soon. The company already has partnership with Tech Mahindra for sourcing telecom-related IT services.

The company is a part of the Fortune 100 conglomerate SK Group, which has diverse interests in sectors ranging from IT and energy to trade and services.