Mahindra Satyam could service M&M

Written by Rachana Khanzode | Shweta Bhanot | Mumbai | Updated: Nov 18 2009, 05:54am hrs
Mahindra Satyam (formerly Satyam Computer Services), which caters to the engineering services market, might look at servicing its new parent firm, Mahindra & Mahindra (M&M), as a client. This comes at a time when M&M is preparing to enter the US market with its market-specific vehicles. Experts said that Mahindra Satyam would come handy for M&M and could become its largest client.

Karthikeyan Natarajan, vice-president & head-integrated engineering solutions, Mahindra Satyam, said: We are not servicing M&M at the moment, but are looking at it and we might help them. According to Natarajan, the firm currently helps its clients in the (intellectual property) IP space for designing products, working out new regulations, industrial products for emission, fuel efficiency & fuel, cost reduction and safety aspects in aerospace area. Besides the brand, M&M gets the firm mechanical potential while Satyam brings in electronic capabilities.

M&M, which is expected to foray into the US market next year with its pick-up truck followed by a US-specific Scorpio, will need to tighten its belt when it comes to research and development (R&D) and product development cycle. The US is a very competitive market and M&M will need to bring out new products at quicker intervals. Further, the company will need high-quality and best-in-design products for its new foray said VG Ramakrishnan, director, automotive and transportation, Frost & Sullivan, South Asia and the Middle East.

According to sources, the group will look at combining the efforts of Mahindra Engineering Services, which provides engineering services to various industries, with Mahindra Satyam.

When asked about the benefit that M&M would get through Mahindra Satyam, Vikas Sehgal, VP and director of India business Chicago and Mumbai, Booz & Co, said: "It is like a double-sided sword. If handled properly, it has the potential to make it bigger.