CMC Ltd, a subsidiary of Tata Consultancy Services (TCS), is targeting the overseas market to increase its international business revenues to about 23 per cent of its total turnover in the current fiscal from 18 per cent in the previous year.
According to R Ramanan, managing director of CMC, "We have now embarked on the process to transform the company and grow the overseas business. From about 18 per cent, the business has grown to about 27 per cent in the first quarter. This was possible because of the group synergies," he said.
Present at a press conference after the company's annual general meeting were S. Ramadorai, chairman and managing director of TCS, R. Ramanan, managing director of CMC, S Mahalingam, the chief financial officer of TCS, and J K Gupta, the CFO of CMC.
R Ramanan, managing director and chief executive officer of CMC, said, "the company should have a good mix of domestic and international business. With the solutions that the company provides getting more popular among foreign companies we expect the international business to contribute around 23 per cent this year."
Ramanan also said CMC would also focus on cross selling with TCS in the domestic market for improved profitability. He said CMC's synergy with TCS was instrumental in getting it into overseas markets. He added that CMC would collaborate with TCS wherever possible to bring in best practices.
Ramanan said CMC would invest more into research and development (R&D) during the current financial year from Rs12 crore last year, approximately around 1.5 per cent of the turnover.
According to him, this year the investment would be mainly in developing e-security and security technology for ports and cargo.
As to the possibility of a merger between TCS and CMC, S Ramadorai said, "There are no plans of merging CMC with TCS. But if it is beneficial and the boards of both the companies agree then we are open for the merger."
On the possibility of merger of other Tata group companies like Tata Technologies or Tata Interactive with TCS, Ramadorai said, "We will deliberate on this and consider this at an appropriate time. It is for the shareholders and board to decide about such matters."
Ramanan said CMC was focussed on consolidation and synergising its operations with TCS in the last few quarters and did not make any additions to its workforce. In the current fiscal CMC plans to add about 300 employee from the present 3100.
According to him, the CMC education division witnessed good growth the last quarter.