New Delhi: Tech Mahindra said on Thursday it will enter into a joint venture with Motorola Inc, called CanvasM, at an investment of $10 million, to develop mobile application solutions.
"In the 80:20 joint venture, in which Motorola's contribution will be $2.5 million, the core team will come from Tech Mahindra, while the sales leverage will come from the Motorola and Tech Mahindra channels," Tech Mahindra Corporate Affairs President Sujit Bakshi said while announcing the company's public issue.
"The initial equity infusion will be Rs 46 crore from Tech Mahindra and Rs 11 crore from Motorola," he added.
The venture will be based in Noida, and have two R&D centres in Noida and Bangalore.
CanvasM will enable network service providers and enterprises to manage the deployment of applications, thereby shortening time to revenue and reducing the total cost of ownership, besides increasing their differentiation.
Tech Mahindra will formally announce the joint venture on August 1. The company also said it had notched up a $30 million contract with Hutch in Indonesia.
"The first phase of the Hutch contract that we bagged last quarter, will be completed by next month," Bakshi said, however, refused to divulge any detail on the amount of the deal.
"All I can say is that it is a very big contract, and involves a large amount," he said.
Under the contract, Tech Mahindra will provide back-end solutions to Hutch in Indonesia.
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