The Hindu Business Line : CMC, TCS script joint growth plan

CMC and TCS have drafted a joint `go-to-market' approach to address opportunities in both domestic and international markets building on diverse strengths.

Addressing shareholders at the 29th AGM of CMC, the Chairman, Mr S. Ramadorai, said: "CMC's strong domain expertise, technical skills in niche areas, and strong service delivery chain in India and TCS's expertise in application development, global execution and delivery capabilities, create an unbeatable combination for accelerated growth."

The Managing Director of CMC, Mr R. Ramanan, said that the company expected to recruit about 300-400 people this year, adding to the existing 3,200 to scale up operations and also invest in strengthening the infrastructure and other skills.

Replying to queries, Mr Ramanan said that the pressure on revenues and margins in 2004-05 was mainly due to the impact of increased competition from the existing and other players, lower other income compared with the previous year, and the Rs 16-crore provisioning against dues from two international clients.

The board has recommended a dividend of 45 per cent, compared to 55 per cent last year.

"However, we continue to be positive on business having restructured the overall operations. From an 82:18 mix of international and domestic business, we expect to grow the international business this year to about 30 per cent, building on combined strengths. This will help both scale up in value and also provide a wider range of services," Mr Ramanan said.

He added: "Even within the domestic market, insurance has emerged as a big opportunity. Having provided technology support to three major insurance companies, we are holding parleys with private insurance companies."

The CFO of TCS, Mr S. Mahalingam, said: "We would not like to give any financial guidance. However, it is a fact that the domestic market is expanding and together with TCS there is potential for overseas business. Though there will be single face in the overseas market, we expect the combined strengths to help address this."

Citing the Department of Company Affairs and Central Bank of India projects, Mr Mahalingam said: "These clearly demonstrate how we have worked together in major projects. So far CMC has managed scores of innovative projects in the country and is well positioned to address large digitisation projects."

He added: "It is for the respective boards to consider if TCS and CMC could be merged. So far there is no initiative on this."

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
VSNL dial-up Net subscriber base drops 24 pc

VSAT licence of HFCL cancelled

Tricom Q4 net up

CMC, TCS script joint growth plan

Ness Tech bags BridgeCo deal

eInfochips plans to double headcount

Redknee scouting for buys here

QuEST, Smiths Aerospace in pact

Piracy up at 73 pc