• NOVEMBER 11, 2000

Trigyn – A trigynous approach

Undoubtedly so. Trigyn focuses on the three hottest markets in the software sector: e-business, telecom and finance.

Leading Edge Systems Limited, a Mumbai-based software services company was founded in 1986. It was renamed Trigyn Technologies Limited, subsequent to its merger with eCapital Solutions, an Internet and telecom applications start-up.

It’s been quite sometime since the trading pit at BSE has been quiet. Millions are now exchanged with out a pip through the BOLT and NEAT (online) systems. The broker community took sometime to get used to computers. But once they understood the advantages, the market for trading related software began to grow.

Trigyn provides a global financial trading suite that includes back office, middle office and front office solutions. It also has products for the derivatives and net broking segments. Trigyn is very cost competitive in these segments and therefore has been doing extremely well. The threat is that very big names are entering the market (TCS, I-flex). But the only relief for Trigyn is that the price they are asking for is very close to being astronomical. Broking always has been low margin high volume game so to convince this community to pay for names is going to be very difficult.

Another very interesting area Trigyn has focused on is telecom. This sector is very technology intensive and therefore all the names that are already in this sector are quite big like Wipro and Hughes software. Digital too is to enter into this vertical. However, not everybody can afford a Wipro and Hughes. Further, Trigyn is also focusing on a slightly different area.

Trigyn’s unified messaging platform provides a solution between the Internet and WAP Gateways. To put it very simply Trigyn now provides M-enabling solutions to organizations. It has a strong product, eVector, in this segment.

In the E-biz area its services are nothing unique but then considering the price you have to pay for branded names, the company has a lot of opportunity here too. Also everybody wants to be as close to the customer as possible - in their homes.

What holds the company in good light is that its focus is towards products. This has been a trend that is fast catching up with the Indian software industry. A product provides better margins as the same effort is sold again and again. Customization is something, which the client pays for. But this is a high-risk high return game because you are creating brand names and if the product fails it can be financially disastrous for the company.

As Trigyn’s major revenues come from the e-business segment (56%) it needs to focus on the securities and the telecom industry for better growth rates and creating value for the shareholders (40 % are employees). This would be an interesting company to watch in the times to come.

The next few months are going to be crucial. If the company can create a good brand name, which will require strong customer focus and commitments delivered on time, it will be home. What will determine its future sustainability is the quality of its solutions. The question is can it? Let us watch closely.

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