The Hindu Business Line : TCS to spend Rs 1,300 cr on capex

Tata Consultancy Services expects to spend Rs 1,300 crore in capital expenditure during the current fiscal, Mr Ratan Tata, Chairman, TCS, said, speaking at the company's AGM on Thursday.

Of this amount, Rs 1,000 crore will be invested in real estate for setting up more software development centres.

TCS will add over 30,000 employees this financial year. Its global delivery centres in Latin America, China and Eastern Europe will grow at accelerated rates, said the company's CEO and Managing Director, Mr S. Ramadorai.

At 9.9 per cent the company's employee attrition rate is the lowest in the industry, he said.

Employee costs may go up because of demand and supply, said Mr Tata, replying to a question.

Turnkey contracts

The intention of the company is to get more turnkey contracts and not material and time type of contracts so that there cannot be any dramatic fall in margins, he said. On the large reserves of the company, Mr Tata said these were required for its inorganic growth.

"While we do not have a foreign listing or floatation, there is a need for a company in its early stages to have money to make acquisitions and merge companies with to itself," he said.

He said that this would be so until the company has enough currency to make acquisitions at a later time.

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