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. 

PERFORMANCE HIGHLIGHTS
  • Software exports 90% of revenues
  • Invested $1,000,000 in German company Sidoun Gmbh to enter non-US markets
  • 66% of revenues came from banking, financial, services and insurance
  • The remaining 34% came from networking, communications, transportation and ERP solutions
FACT SHEET
CMD: Arun Jain START-UP YEAR: 1993
PRODUCTS & SERVICES: Software development, consultancy, vertical solutions
BRANCHES: 15 EMPLOYEES: 2,334 ADDRESS: Polaris House, 244, Anna
Salai, Chennai 600006
TEL: 8524154 FAX 8523280 WEBSITE: www.polaris.co.in
 

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