CMC plans to ramp up overseas business
Business
Standard - August 31, 2004
- CMC
Ltd, a subsidiary of Tata Consultancy Services
(TCS), plans to ramp up its international business
in the current financial year to around 23 per
cent of its total business. During the
previous financial year the international business
contributed around 18 per cent of the company’s
total turnover. R Ramanan, managing director
and chief executive officer of CMC, said,
“For the company to improve its over all portfolio
it is important to have a good mix of domestic
and international business.
With the solutions that the company provides
getting more popular among foreign companies
we expect the international business to
contribute around 23 per cent this year".
“Apart from increasing our foreign business,
we would also be concentrating on cross-selling
in the domestic market for better profitability,”
he said. According to Ramanan, the synergy with
TCS was instrumental in CMC getting into
multiple markets.
“We would be collaborating with TCS where ever
possible to bring in the best practices. Since
TCS has a global presence it would help us in
getting into new markets,” Ramanan said. CMC
plans to invest more into research and
development (R&D) during the current financial
year. “During the previous financial year we
invested Rs 12 crore which is approximately
around 1.5 per cent of the turnover and
if it is necessary we would be investing more
in R&D activities.” he said.
According to him, this year the investment would
be mainly in developing e-security and security
technology for ports and cargo. “Another important
factor for the success would depend on how
agile can the company be to the changing needs,”
Ramanan said. CMC also plans to increase its
headcount by around 300 from the present 3,100
by the end of the current financial year. S
Ramadorai, chairman CMC Ltd and managing director
of Tata Consultancy Services, said, “There are
no plans of merging CMC with TCS. But if it
is beneficial and the boards of both the companies
agree then we are open for the merger.”
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