TCS plans to get out of non-core businesses
Business Standard — December 17, 2004

Tata Consultancy Services (TCS), Asia's largest software company, is restructuring operations and exiting non-core areas. The first business that will be on the block is the company's share registry business. TCS Managing Director S Ramadorai told Business Standard: "We would like to exit certain areas that are non-core (to the main business), especially with some of the services getting commoditised." Ramadorai cited the example of IBM selling its personal computers business.

"We are getting out of the share transfer business and selling it to a third party. An announcement to his effect will be made shortly," Ramadorai said. However, he refused to divulge the name of the buyer. For TCS, the share registry business is a small part of its overall business. Sources hinted the south-based Karvy Stock Broking was likely to acquire TCS' share registry business but no official confirmation was available.

Apart from TCS, another Tata group company, Tata Share Registry, is also in a similar business. Tata Share Registry is owned equally by Tata Finance and Nishkalp Investments, an associate company of Tata Finance. Nishkalp is largely owned by Tata Sons. The Tatas have already signed a memorandum of understanding to sell the Rs 15 crore Mumbai-based Tata Share Registry to the Mumbai-based stock broking company, Darashaw & Company, but the transfer has not yet been effected.

"Certain formalities and the due diligence are yet to be completed," sources said. Darashaw also wanted TCS' share registry business from TCS, but the Tatas did not want to club the two deals, the sources added