The Hindu Business Line : Tatas' exit from Avaya venture `smooth'

THE exit of the Tatas from Tata Telecom Ltd, their joint venture with the US-based Avaya Inc, is amicable and the company sees no change in its plans and working due to the change in its equity structure.

"The Tatas decided to exit simply because they want to concentrate on their services business. The two companies had a good working relationship for the last seven years. Initially the company was primarily a PBX supplier. With Avaya, we have worked to make it a converged communication solutions provider and we will retain that focus," Tata Telecom Vice-Chairman, Mr Niru Mehta, told Business Line.

Asked about the new name of the company, in which Avaya is buying out the Tata Group's 25.1 per cent equity, Mr Mehta said that the modalities were still being worked out.

"Our relationship with our customers, as also our vendors, is likely to see no change. Except at the board level, there will be no change in the employees or our policies. The only thing that will change is the name of the company after the equity is transferred," he said.

Mr Mehta said that globally, Avaya services 90 per cent of all Fortune 500 companies, many of which are coming to India.

"It is important for us to focus on these companies to ensure that they retain Avaya when they come to India as well," he said.

Tata Telecom claims to have a 56 per cent share in the country's booming call centre/BPO market and a leadership position in IP (Internet Protocol) telephony, video conferencing and voice communication equipment. The company's sales turnover stood at Rs 326 crore in 2002-03, which had been projected to rise 22-24 per cent in the recently concluded fiscal.

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