IT services company Tech Mahindra has charted out a strategy to increase its revenue to $5 billion by 2015. The company, which on Tuesday announced a formal merger with Mahindra Satyam, also wants to be the best employer and among the best-known brands in three years.
Post the merger, the combined entity has revenues of $2.7 billion and 84,000 employees, including around 40,000 from Mahindra Satyam.
The company said it had given meaning to each digit in 2015. The number ‘2’ stands for doubling its revenue to $5 billion. Zero stands for achieving 0 differential between its bottom line and the EBITDA of the fastest growing rival. Number ‘1’ stands for being number one as the best employer and amongst the best-known companies for corporate social responsibility. The number ‘5’ stands for the five verticals where the company wants to be known for in the world — telecom; manufacturing; mobility analytics, cloud security and banking; network services; and banking, financial services and insurance.
Unveiling the strategy for the merged entity, Vineet Nayyar, Executive Vice-Chairman, Tech Mahindra, said: “Over the past four years, while we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our stakeholders.” When asked about retaining Tech Mahindra’s brand name for the merged entity, Nayyar said Tech Mahindra was a better known company in the IT industry globally. Also, when surveyed, the majority employees of both the companies had supported retaining the same name.
Rakesh Soni has been appointed as the Chief People Officer. He was earlier Chief Operating Officer at Mahindra Satyam.
Hari T. has been appointed as Chief Marketing Officer (CMO). Earlier, he was CMO and Chief People’s Officer at Mahindra Satyam. Milind Kulkarni remains as Chief Financial Officer, Tech Mahindra.
The senior-most positions also remain unchanged. While Anand Mahindra remains as the Chairman of the new company also, Nayyar and C.P. Gurnani will remain as the Executive Vice-Chairman and Managing Director, respectively.
The boards of Tech Mahindra and Mahindra Satyam had approved the merger on March 21 last year. After an approval from Bombay High Court, the merger had been awaiting clearance from the Andhra Pradesh High Court, which gave the nod on June 11.
The company announced a stock swap ratio of 2 shares of Tech Mahindra for 17 shares of Mahindra Satyam.
The board of directors has fixed July 5 as a record date for determining the shareholders of Satyam who would be entitled to receive new shares.
Tech Mahindra shares closed at Rs 1,009.70 on BSE, up 1.02 per cent from the previous close.
ronendrasingh.s@thehindu.co.in