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Media Reports
TATA Infotech could add up to 300 employees to its rolls this fiscal, taking its employee strength to 4000. The company has also started rolling out ATM machines and information kiosks as part of a strategy to expand the scope of its hardware business. Tata Infotech managing director Nirmal Jain told The Economic Times: "We have started selling ATM machines to banks, both in the private and public sector, and expect to sell about 200-300 in the first year. As part of the initiative to expand the hardware business, we are also collaborating with the Railways to set up information kiosks at select stations in Mumbai." The design and assembling for both the ATM and information kiosk project are being handled out of the company's unit in Goa. While information kiosks are still at an early stage, the ATM business is already on the ground on a commercial scale. The company will be competing with the likes of NCR Corporation and Diebold who together command 90 per cent of the ATM market in India. During the current fiscal, the demand for ATM machines in the country was expected to touch 4,000, said Jain. The company expects a 15-20 per cent growth in topline growth, in the context of the ongoing US economic slowdown. About 70 per cent of the company's revenues last year came from the US, while the balance came from Europe and the Far East. "We expect out business in the Far East to grow faster this year, but Europe will be a difficult market to grow in," he added. Tata Infotech had a net profit of Rs 26.50 core on a turnover of Rs 524 crore during fiscal 2001. The revenue mix of the company has 55 per cent coming in from global software services, 30 per cent from systems integration in the domestic market, while the balance 15 per cent was divided between hardware and education. According to Jain, the company is now making an concentrated effort to emerge a global systems integration player and is actively scouting joint-venture partners in the US market to expand this business overseas. In India, it has 300 people dedicated to the systems integration business and if it is able to grow overseas as well, it would have to dedicate a further 400 people. "The easiest way to do this is to partner with a company in the US which already has a presence in systems integration." he said. For a joint venture partner it would be looking at a company with a revenue size of $50-100 million. |
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