Reach Tech, Microsoft unveil ERP solutions for soft goods industry

Tirupur, Tamil Nadu, Aug 20 (UNI) Bangalore-based Reach Technologies Ltd (RTL), a certified Microsoft partner and a leading integrated IT solutions provider to the soft goods industry, unveiled its Reach Enterprise Resource Planning (ERP) solution customised on Microsoft Dynamics here.

''The all-in-one solution is an attempt to propel the soft goods industry, which is currently facing problems like shifting consumer preferences, reduced time-to-market, and lack of co-ordination across the supply chain,'' RTL CEO Shyam Raj said at the event organised to highlight the problems faced by the industry.

The event, jointly sponsored by RTL, Microsoft, Intel and the Tirupur Exporters Association (TEA), highlighted the need for collaborative partnerships between retailers, brands and manufacturers/sub-contractors in the soft goods industry through the strategic use of IT, enabling cluster adoption of IT by Tirupur apparel manufacturers.

''Under the arrangement between Microsoft and RTL for Reach ERP solution, implementation and customisation fee will go to RTL while the license fee will be shared equally by the two companies,'' Mr Raj told UNI.

Reach ERP, based on the business solution Microsoft Dynamics, will range from Rs 3.5-4 lakh to Rs 2 crore, depending on the usage and functionality of the solutions, and will be implemented in Tirupur in the next four months, Mr Raj added.

''Under the cluster initiative of the Government of India, there are 388 clusters which are industry specific, and Phase I of Microsoft, IT enabling these clusters, include the Tirupur Apparel Industry, Ahmedabad Pharmaceutical companies and the Pune automative component companies, by the end of this year,'' Microsoft Product Technoloy Specialist Lead Ashish Bhatnagar said.

He also hinted at a chemical manufacturing unit in Ankleshwar, but refused to divulge any details.

On the basis on which the clusters were chosen, he said, ''we have a fixed criteria with the National Manufacturing Competitiveness Council (NMCC) and other goverment organisations on the basis on which we choose the clusters.'' The annual turnover of RTL is over 4 million dollars.

''We expect a conservative 3 million dollar turnover from the Reach ERP solution, alone and are hoping to double the total turnover this fiscal,'' Mr Raj said.

The company has 450 customers in India, ''and we are aiming to take that number to 5,000 by 2009. We have a development centre in Bangalore with around 200 people and are opening another centre in Coimbatore with a 400 capacity in the next nine months.

The company is also scouting acquisitions in North America and Western Europe and to access and tap into the market there.

''Out of the total 120 companies we were looking at for acquisitions abroad, we have shortlisted 120 companies and in the next two months hope to finalise 6-7 million dollar deal in Western Europe. However negotiations are on and details will be available as and when we finalise everything,'' Mr Raj said.

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