June 11th 2002 - TATA Elxsi Ltd, the technical computing arm of the Tata Group, is sharpening its focus on the product R&D outsourcing space.
"The increasing shift in customers strategy towards outsourcing product R&D dictates our plans to focus exclusively on this space, said Mr Madhukar Dev, CEO, Tata Elxsi. "We are seeing a good traction in the product R&D outsourcing space, echoed Mr Ramki Sankaranarayanan, General Manager, Worldwide Sales and Marketing, Tata Elxsi
The recent efforts in the R&D outsourcing space were witnessing significant ramp-ups from the existing clients, he added. "We see a topline growth in excess of 30 per cent during the current year, Mr Dev said.
The traction was mainly from business segments in the wireless areas, consumer electronics, media and scientific applications, Mr Ramki said. The company planned to leverage on the existing customers even while tapping new clients, he said, adding that new client acquisition had been tough.
Design and development services, largely targeted at the exports market, accounted for nearly 50 per cent of the overall companys revenues last year, up from 40 per cent in the previous year. The rest came from the systems integration business, which is mainly oriented towards the domestic market.
"We expect the mix to largely remain similar this year too, he said. "The company at present has a strength of 919 engineers and we expect to add depending on the requirements," he said.
For the year-ended March 31, 2002, the company reported a net profit of Rs 16.74 crore, an increase of 20.77 per cent over the previous year, while its revenues declined by about five per cent to Rs 129.8 crore for the same period.
The company has recently set up a design centre at Technopark, Trivandrum with an investment of Rs 10 crore. Early this year, it has set up a media services group, which will focus on DSP and multimedia services. Through this new group, the company intends to tap the overseas multimedia market, which is a high margin business. |
