Competency to help new entity grow

Oct 31 2012, 02:00 IST
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SummaryCP Gurnani, CEO of Mahindra Satyam and MD of Tech Mahindra, has played a pivotal role in the transformational journey of Mahindra Satyam and is now spearheading the merger with Tech Mahindra, which is aimed at achieving a revenue of $5 billion in the next three years.

CP Gurnani, CEO of Mahindra Satyam and MD of Tech Mahindra, has played a pivotal role in the transformational journey of Mahindra Satyam and is now spearheading the merger with Tech Mahindra, which is aimed at achieving a revenue of $5 billion in the next three years. Gurnani tells BV Mahalakshmi that flexibility and strong competencies across verticals will give the new entity the necessary edge to sustain growth. Edited excerpts:

Is the ambitious target of $5 billion by 2015 achievable given the global headwinds?

As we enter the final stage of the merger, which is expected to result in the creation of the new entity as a new offshore services leader, we are more confident and optimistic than ever before. When talking about global headwinds, I stand strong on my company’s core strengths and differentiated offerings. We are different due to our network and communications and enterprise business solutions focus. Our network, mobility, analytics, cloud and security (NMACS) framework is an example of this difference.

Planning for the unpredictable in these times may seem an impossible irony, but an organisation’s ability to flex and respond is critical for sustaining growth. We have strong competencies in all our verticals, domain and process knowledge. This will give us the necessary edge.

What strategies will be adopted to achieve this target?

The joint entity will have a unified ‘go-to-market’ strategy with deep competencies and a balanced mix of revenues from telecom, manufacturing, technology, media and entertainment, banking, financial services and insurance, retail and healthcare. We expect contribution from Americas at 42%, Europe at 35% and Emerging Markets at 23%. The combined entity will leverage Tech Mahindra’s expertise in mobility, system integration and delivery of large transformations to optimally penetrate the opportunity presented by Mahindra Satyam’s diverse set of clients across multiple verticals.

Are acquisitions also included in the plan? How much capex has been allocated for proposed buyouts?

To achieve the mission we have set for 2015, we have divided our operations into four segments. While two segments focus on customer retention and extension of business with them, there is a segment that will specially focus on mergers and acquisitions. I believe 10% of the target of $5 billion will come from inorganic growth.

For this, the company will appoint two senior executives — one will be involved at the corporate level to look at M&A opportunities while the other will drive the portfolio. We are also looking at start-ups.

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