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Tata Elxsi mulls acquisitions

Our Bureau

BANGALORE, March 7

TATA Elxsi Ltd, part of the Tata Group and a key player in high technology IT business, is considering acquisitions as part of its growth strategy. The company is also planning to set up a software development centre in the US.

Speaking to reporters here on Tuesday, Mr. S. Devarajan, Chief Executive Officer and Managing Director, Tata Elxsi, said his company was not averse to the idea of inorganic growth. ``We are considering acquisitions both in the overseas and domestic mark ets but nothing has been finalised as yet,'' he said.

Tata Elxsi is also planning to expand its software development centre in India. The company currently has four design and development centres in Bangalore and is planning to add another two or three during the next financial year.

According to Mr. Devarajan, the company's global software business is expected to grow this year and the pulldown in the domestic market because of the slowdown in the engineering industry will be balanced by growth in the company's other divisions.

Tata Elxsi offers specialised services for overseas customers in the areas of visual computing, networking and communications, Internet solutions, systems software and embedded systems. The needs of domestic markets addressed include CAD/CAM/CAID, film, video and broadcast, scientific computing and networking solutions. The company has strategic partnerships with leading technology providers like Alias/Waveront, MSC, Nastran, SDRC, Bentley Systems, Nortel Networks, Discreet/Autodesk, Cambridge Animation s, MSI, SGI and Compaq.

For the nine-month period ending December 31 it posted a turnover of Rs. 80 crores and a profit-before-tax of Rs. 1.74 crores, which is nearly 45 per cent more than the corresponding period the previous year, Mr. Devarajan said.

``I am pleased to report the excellent gains in profits and market share. We have leveraged the fine operating performance of our business groups with favourable market conditions. We are positioning ourselves to cater to large opportunities in our areas of strength, the growth and profitability prospects are extremely positive and healthy,'' he added.