23. CMC: Slow in a Happening Time

As a public sector understaking, CMC remained slow in taking decisions, and continued to focus on the less-profitable domestic market, despite having the capability to tap lucrative global market segments. However, the company did successfully tide over a host of problems–largescale employee exodus, intense competition from private players and its own government-controlled character. As part of the plan to tap alternate markets, CMC set up independent profit centers in Europe, West Asia and Africa and East Asia. A trading branch office was also opened in London.

The company’s customer support division continued to be the biggest revenue generator, at Rs 298

crore. It also became a major player in the systems integration business, which contributed Rs 83 crore to revenues. CMC’s education and training business earned Rs 59

crore, while overall turnover was pegged at Rs 552 crore, compared to Rs 468 crore in the previous 1999-00 fiscal. Per employee productivity went up from Rs 16.32 lakh to Rs 19.84

lakh, but it was the growth rate that hurt–it saw a sharp decline from 35% to 18%.