14 Tata Infotech: Faltering Giant

MD: Nirmal Jain START-UP YEAR: 1978 NO OF PARTNERS: 200 BRANCHES: 42 PRODUCTS & SERVICES: Software development, systems integration and education ADDRESS: Manish Commercial Centre, 216-A, Dr. Annie Besant Road, Worli, Mumbai - 400 018 TEL: 022-4933560 FAX: 022-4950318 WEBSITE: www.tatainfotech.com   POINTERS TO PERFORMANCE Tied-up with SolutionNET International Implemented ERP and XML-based projects POINTERS TO FUTURE To provide niche solutions in SI business  To increase profitability and control receivables

Tata Infotech's agency business accounted for 25 percent of its overall turnover of Rs 524 crore. While the company's total revenue grew by 48 percent from Rs 432 crore in 1999-00, their agency business showed a negative growth of eight percent. But this did not affect it adversely in the Silver Club. In fact,the company climbed up two notches from 16th rank last year to 14th this year.

Tata Infotech's domestic business declined from Rs 204 crore in 1999-00 to Rs 202 crore in 2000-01. However, systems integration business grew to Rs 174 crore in 2000-01 from Rs 163 crore in 1999-20001.

In systems integration, the cross-industry and cross-technology areas that Tata Infotech focused on covers e-commerce, imaging, XML, document management, ERP/SCM/CRM, networking and convergence technologies, computer telephony, VoIP, decision support systems, object oriented technology and GIS. It developed and serviced products through five major centers in India namely SEEPZ and MIDC (Mumbai), NEPZ (Noida), Bangalore and

Pune.

The company's objective in 2001 was to climb up the value chain and offer value-added products to its clients. A good move on this front was the setting up of a state-of-the-art `Center of Excellence' in conjunction with Sun Microsystems at Bangalore and opening up a development center in Chicago.

The company signed an agreement with US-based Internet and solutions and services company -- SolutionNET International -- in April 2001, to market their ENet Corporate Internet Banking product in India. 

The company also completed an ERP project implementation for Saudi Arabia-based TAYF. US-based Metlife Insurance, one of the largest insurance companies, awarded them with the task of developing XML-based solutions for their business. It also worked with H2H Insurance, developing e-biz insurance solutions, especially for students who travel abroad for further studies. 

They also signed up with Indian Oil Corporation to implement its plan to connect statewide offices and its head office in Mumbai. With orders of these nature pitching almost Rs 50-70 crore, the company revenues gradually started moving into the black.

For the current fiscal, the company will focus on improving the functioning and profitability of the domestic business, which includes systems integration and education services. The company also plans to further develop, refine and commercialize some of the technologies that it has been working on.