Telecom infrastructure solutions provider Tanla Solutions will form a joint venture firm with Spain-based Zed Worldwide Holdings at an investment of about Rs63 crore.
The firm has already received approval from the Foreign Investment Promotion Board (FIPB) for the establishment of the proposed JV.
The new entity would be mainly engaged in the development and provision of traditional and next-generation mobile application content and services to mobile phone users in the country.
The JV would commence its operations during 1QFY2010 and proposes to offer new services for the mobile internet (including 3G), mobile entertainment, mobile advertising and interactive television verticals.
Zed is a leading mobile entertainment services firm and has presence in 54 countries. This development will lead to an expansion of the addressable market for Tanla, which is a positive given a global slowdown and recession in its key markets like the UK.
We maintain a BUY on Tanla Solutions.