Graphics and Internet software company, Neilsoft Ltd, has taken up a major expansion plan with an infusion of Rs 9.2 crore. This would include setting up a subsidiary at Ann-Abor, Michigan, USA, and a marketing arm in Singapore.

The company, which provides services and products in the graphics/CAD-CAM and Internet areas is also putting up a 15,000 sq ft facility at Pune Infotech Park and enhancing R&D and product development activities.

"We see immense opportunities for 3D technology and the marriage of the graphics and Internet medium," said Ketan Bakshi, managing director, Neilsoft. "Our mix of services, including software testing, Internet applications and content development and engineering services will address this need."

Bakshi predicted a major conversion over to 3D applications, globally: "3D applications will become all-pervasive, within every sector of the industry-- engineering, fashion, consumer goods, automobiles. Additionally, there are tonnes of legacy systems data that would require conversion into 3D." The company is making its expansion moves in order to gear itself to meet this demand, which, he expects, is "not too far away -- about two years."

The proposed Ann-Abor unit is to be a full-fledged development centre and will replicate the activities carried out in Pune. Neilsoft will make a seed investment of $350,000 for the venture. "Eventually, we expect the company to grow on its own as a full-fledged US company," says Bakshi.

The Singapore unit is to be a marketing arm, for which Neilsoft will be tying up with a Singapore company, likely to be in place by April this year

The first phase of the funding has got underway, with SICOM Capital Management Ltd taking up a 19 per cent share of the equity, with an investment of Rs 2.25 crore at Rs 60 per share. An additional Rs 2.23 crore is coming through term loan from SICOM. Ahmedabad-based Gujarat Venture Finance Ltd is also likely to come in with venture capital, approval for which is awaited from SICOM. "This will hold us good for the next few years," says Bakshi.

Neilsoft, which began operations in 1993 in the graphics/CAD-CAM niche area, expanded operations in 1996 into software testing and development activities. The company closed 1998-99 with a turnover of Rs 11.21 crore, an operating profit of Rs 1.56 crore and a profit after tax of Rs 0.85 crore. Exports accounted for Rs 3 crore. The company has targeted a turnover of over Rs 60 crore by 2003.