MG Contract

Salzburg luxury hotels20 January 2000

Madura Garments

Madura Garments are the owners in India for the apparel brands Louise Phillipe, VanHeusen, Allen Solly, Peter England, San Frisco and Byford. Madura Garments is the appareldivision of Aditya Birla Group's Indian Rayon and Industries Ltd.,

VA has been associated with MG since 1993 when MG opted for SHOPER Retail Managementsoftware for its retail outlets. Subsequently VA was contracted to develop warehousing andlogistics systems. In 1997 MG contracted VA for a total software maintenance. Thiscontract has been continued till date. The IT system at MG, though exhaustive, have beenimplemented using various platforms. The disparity of the platforms form the major hurdlefrom achieving total integration. Besides the business need to move on to newer andweb-centric technologies were mounting. Thus MG decided to re-develop all applications ona unified and futuristic platform. VA was found to be the ideal candidate to address theredevelopment and seamlessly change-over while continuing the maintenance of the existingsystems till that point.

The Contract

Detailed discussions where held between the management of VA and MG. Instead of renewalof the existing contract for maintenance of software, a new contract was framed and amemorandum of understanding was signed on 27th November 1999. Further details where workedout and the contract was finalized. Today, the new contract applicable from 1st April 2000onwards signed by Mr. Vikram Rao, Group Executive President, Aditya Birla Group wasawarded to VA. Acceptance of the same was signed by Mr.P.V.Ravindran, senior Partner, VA.

The annual value of the new contract is around Six Million Indian Rupees and the termis for two years. Mr.N.P.Singh, GM-IT of MG is confident that this partnership withVA will be mutually beneficial to both.