CMC Bets On Global Markets

Hyderabad | Updated: Aug 31 2004, 05:30am hrs
CMC Ltd, a Tata group end-to-end information technology (IT) solutions provider, is betting big on the international markets. Armed with the support of Tata Consultancy Services (TCS), CMC is looking at international businesses to contribute 25 per cent to the overall turnover this fiscal, as against 18 per cent earlier.

Having synergised itself with TCS on all fronts, CMC believes that revenue from international businesses is imminent for the company to sustain and grow further and has decided to spruce up its activities, said CMC managing director and chief executive officer R Ramanan.

Addressing a press conference after the 28th annual general meeting (AGM) on Monday, Mr Ramanan said that CMC is well on track to become a global player with a strong domestic focus to take on competition.

We expect contribution from the international businesses to grow to 25 per cent this fiscal, as against 18 per cent during last fiscal, Mr Ramanan said.

International as well domestic markets are essential for CMC, to not only create a brand but also to grow fast and improve its profitability, CMC chairman S Ramadorai said.

To a specific question on the possible merger of CMC with TCS, Mr Ramadorai pointed out that CMC and TCS are different and listed entities with different board of directors, shareholders and investors.

However, he admitted to the possibility of merging CMC with TCS, but not in the near future. Consolidation should and will happen in the industry and Tatas will consider over a period of time, merging CMC and other Tata group entities like Tata Exlsi, Tata Interactive and Tata Technologies with TCS, he added.

While stepping up its efforts in tapping the overseas potential, CMC, however, will not enter those countries and areas where TCS already has a presence. We will not re-invent another base in those places where TCS has its operations, Mr Ramanan said.

Earlier, Mr Ramanan informed that the company has resumed its expansion activities after consolidating its activities over a period of time. We plan to add 300 professionals during the fiscal, Mr Ramanan said, adding that it currently has 3,100 professionals.

Moreover, the company with a research and development (R&D) spend of 1.5 per cent of its turnover, is set to increase it further in the areas of smart technologies (smart cards), integrating bio-metric security system with smart cards, developing new technologies for ports and cargo handlings, e-security and public key infrastructure, etc, Mr Ramanan added.