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TCS to join the $10 billion league by 2010 news
30 June 2006

Mumbai: Tata Consultancy Services Ltd (TCS), the country''s largest exporter of IT and ITES services, expects its revenues to touch $10 billion in the next four to five years - a five-fold increase from the current levels of over $2 billion.

Addressing the annual general meeting of the company in Mumbai, Tata group chairman Ratan Tata said, "We aim to become among the top ten (IT companies) by 2010 with revenues touching $10 billion over the next four years. The company will leverage the booming IT industry which is witnessing rapid growth during these years."

TCS currently is the country''s top IT software and service exporter, followed by Infosys Technologies Ltd and Wipro, respectively, as per the ranking of top 20 companies by the National Association of Software and Service Companies (Nasscom) for 2005-06.

TCS reported revenues of over $2 billion in the previous fiscal.

Tata said the company has earmarked a capital expenditure of around Rs 1,300 crore for the current fiscal and strengthening of the employee base by around 30,000 during the year current fiscal.

Of this, he said, Rs1,000 crore would be used for infrastructure development, including setting up of campuses in various parts of the country, while Rs300 crore would go towards technology development.

TCS, he said, would use the merger and acquisition route to achieve a 28-30 per cent growth rate during the year, slightly above the growth rate predicted by the industry association NASSCOM.

The TCS board, meanwhile, proposed the issue of bonus shares of Re1 each on a 1:1 basis for each Re1 share. The company has approved the capitalisation of a sum of Rs48,93,05,249 out of the Rs20,66.68 crore standing in the credit of the securities premium account as of March 31, 2006, the company informed the Bombay Stock Exchange (BSE) on Thursday.

The proposed issue, however, is subject to necessary provisions and approvals.

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TCS to join the $10 billion league by 2010