IBM today announced that it has signed a five-year, end-to-end business transformation and information technology (IT) outsourcing agreement with Eureka Forbes Limited, a subsidiary of the Shapoorji Pallonji Group and a leading health and hygiene solutions company in India. Valued at $15 million, the deal is based on a unique risk-reward model and will help Eureka Forbes achieve growth by aligning its IT to business strategy.

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As part of the deal, IBM will provide business consulting, package implementation, infrastructure and application management services to Eureka Forbes. IBM will also leverage its research capabilities to offer unique tools that help Eureka Forbes improve its revenue. Transformational in nature, this engagement will help Eureka Forbes increase its focus on customer satisfaction, greater profitability and enhanced collaboration with its sales force and dealer network. The deal will also involve transition of Eureka Forbes' IT staff to IBM.

This agreement is first-of-a-kind for IBM in the consumer durable industry in India, especially in the health and hygiene solutions segment and follows other successful transformational deals in industries like telecom and insurance. Through this risk-reward model of engagement, IBM will help Eureka Forbes achieve four key objectives:

  --  Increase product revenue
  --  Optimize inventory holding
  --  Reduce selling, general and administrative expenses
  --  Increase revenue from annual maintenance contracts

Talking about this strategic relationship, Mr. Suresh Goklaney, Vice Chairman and Managing Director of Eureka Forbes Ltd. said, "At Eureka Forbes, the customer has always been our most important focal point. We are delighted with our relationship with IBM, the world's leading IT services company. We believe their proven leadership in providing IT transformation for Eureka Forbes and their global expertise in the consumer durable industry will enable Eureka Forbes to even more aggressively achieve its business goal."

Shanker Annaswamy, Managing Director, IBM India/South Asia said, "IBM will bring its deep global expertise in business transformation and innovation to enable Eureka Forbes to deliver greater customer value, business growth and operational efficiency. Eureka Forbes' philosophy is to be a 'Friend for Life' and we at IBM believe that we could bring in substantial value in furthering Eureka Forbes mission to create a healthy, happy and safe life for millions of Indians. IBM is excited about this strategic relationship and is looking forward to bring about a positive impact to Eureka Forbes' vision for growth."

Through this IT services agreement IBM will put in place collaboration platforms like employee self-service, business partner management system and knowledge management system. It will also provide helpdesk, server management, security compliance and network management services, and drive efficiencies in IT infrastructure. This deal was won against key domestic and MNC players.

Speaking on the strategic importance of this engagement to company's IT landscape, Adi Shroff, Chief Information Officer, Eureka Forbes Ltd said, "It is important for us to optimize our core functions in line with overall business strategy and Eureka Forbes relationship with IBM to enable our business transformation assumes great significance. This engagement will help us drive efficiencies in our operations as well as identify strategic areas through which IT can provide maximum business impact."

As one of Asia's largest direct sales organizations reaching over 2.6 million Indian homes through its team of 7,000 frontline Sales Executives known as Eurochamps, Eureka Forbes is increasing its focus on improved relationship with their customers. Eureka Forbes will work with IBM to enable its sales force for 'Intelligent Knocking' leveraging the Customer Relationship Management (CRM) solution and handhelds that are currently being piloted for Mumbai region.

About Eureka Forbes Limited

Eureka Forbes Limited is a young company - only 27 years old - and in a short span has done path breaking work in engaging with the customer and development of relationship that truly goes beyond and is considered a benchmark in service.

Eureka Forbes is a Rs10 billion multi-product, multi-channel corporation operating in over 250 offices in major cities with over 9,000 employees and is a part of the Shapoorji Pallonji Group.

Eureka Forbes is a Superbrand, featured as a Harvard Business School Case Study and is amongst the top 10 best employers in India.

Eureka Forbes is a leading player in consumer durables industry, having presence across the water purification and hygiene cleaning value chain. The major products out of their stable are the Vacuum Cleaner and the Aquaguard water purifier. Eureka Forbes is Asia's largest direct selling organization - 7,000 strong direct sales force reach 2.6 million Indian homes in a year, adding 1,800 customers daily. It primarily sells residential and industrial water purifier systems, residential and industrial vacuum cleaners, fire alarm systems, home security systems and air purifiers. Based on its success in India, Eureka Forbes has spread its wings globally to over 29 countries.

Eureka Forbes continuously challenges its own performance and seeks global level recognition by submitting their products to the most stringent tests in world class laboratories. Eureka Forbes has always been a true "Friend for Life" for its customers.

  For more information visit: www.eurekaforbes.com.

  About IBM
  For more information, visit www.ibm.com/services.


  Media Contacts:
  Goldie Srivastava                   Siddhartha Singh
  IBM India                           Eureka Forbes
  E-mail: gsrivast@in.ibm.com         E-mail: siddharthas@eurekaforbes.com
  Tel: +91-9880309691                 Tel: +91 9867487180

First Call Analyst:
FCMN Contact: gablej@us.ibm.com

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SOURCE: IBM