Mills Get Smart; Forbes Gokak Deploys BaaN

by Amit Tripathi    Dec 30, 2003

SSA Global is at the completion stage of deploying its ERP, BaaN, at Belgaum based Forbes Gokak Textile Mills.

Speaking to CXOtoday, Gopal Madnani, Country Manager, SSA Global, said, “We have initially customized the system for around 80 users. However, the mill management plans to introduce around 300 users in a couple of years time.’

Just a month back SSA Global had finished the deployment of Baan at Tata Tin Plates, Jamshedpur. For supporting 12-16 users, the price of the ERP package is around Rs 30-35 lakhs inclusive of license and consulting fees.

Madnani explained, “Our annual support fee is 20-25% of the license fee of $2000.”

The implementation issues, according to Madnani, are largely centered around a customers adaptability to the new ways of doing business. Madnani detailed, “It is a matter of creating an ’awareness campaign’ amongst the workforce and the company’s customers, which facilitates the absorption of new technology. The more the awareness, the easier is the acceptance process.”

Aren’t smaller players providing customized ERP-type packages, giving bigger players like SSA Global, a run for their money? Madnani expressed his viewpoint adding, “Established ERP packages are made keeping all regulatory compliances in mind for e.g. in the case of the pharmaceutical industry, the FDA (Food and Drug Administration) compliance is adhered to. Customized ERP on the other hand, is made mainly according to user-defined needs, largely ignoring the compliance perspective. ”

Sounding an optimistic beat for 2004, Madnani said, “We hope to achieve a market share of 18-20% in the year ending in July 2004, and expect to achieve a market share of 25-27% by July 2005.”

Tags: Forbes, ERP