44. Polaris Software Labs: Out of the Quagmire?

One of the fastest-growing IT companies in the country, Polaris posted a turnover of Rs 270 crore in 2000-01, a growth of 81% over the previous year. The bulk of the revenues came from software exports, which accounted for Rs 249
crore. Two-thirds of the company’s revenues came from the banking, financial services and insurance, owing to its domain expertise in the segment. The remaining 34% of the revenues came from areas like networking and communications, transportation, and
ERP.

The company also had its share of woes. It was caught in a quagmire on an acquisition deal with the US-based Data Inc. The acquisition estimated at $21 million fell apart after the audit committee of the company disapproved of the deal. To acquire knowledge base and to enter new and emerging non-US markets, Polaris invested $1,000,000 in a German company Sidoun
Gmbh, acquiring 18.7% of Sidoun’s equity. This investment will also help Polaris market its Component Warehouse Framework solution. The framework hastens project delivery capabilities at three times normal speed.