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Godrej & Boyce in Rs 10 cr JV to set up branded cyber cafes

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Godrej & Boyce in Rs 10 cr JV to set up branded cyber cafes

The cyber cafes will be branded as "Godrej Rex-Rotary Print Shop". The joint venture company plans to pump in an investment of Rs 10 crore into setting up cyber cafes over a period of three years. The first cyber cafe under the JV will come up in Bangalore by mid-January 2001. Rex-Rotary will invest Rs 5 crore in the joint venture for brand-building support to the franchisees. The company is in the process of appointing 100 super franchisees in the country.

The franchisees will invest Rs 25 lakh in the venture, and function to provide services such as remote printing photocopies (say, from Bangalore to Bombay), colour printing, surface application such as printing on T-shirts, mugs, ceramic printing and surface lamination colour printing, book printing, newsletters and brochures.

The company estimates the total number of cyber cafes in the country to touch one lakh in the next five years. At present, there are 35-40,000 cyber cafes in the country.

Sam Pitroda's World-Tel is understood to be expanding the number of cafes to 35,000 and S Kumars to 17,000, in the years to come. Godrej & Boyce is also planning to sell its multi-functional devices such as printers, scanners and fax printers (at 10 ppm to 100 ppm rate) to the cyber cafes that will be set up by the JV. An Internet user will be charged Rs 80 for an hour and will have to pay Rs 4 for a laser print-out and Re 1 for a photocopy. This is lower as compared to the standard charges of Rs 5 and Rs 1.50 for a laser printer and a photocopy respectively.


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