31. Mahindra BT: Some Smiles, Some Tears

It was an eventful year for this Pune-based software services major, one which saw it post a growth of 66%, against a relatively lackluster 36% in the previous year. But there was the downside to the year too, as long-drawn plans to enter the capital market went bust yet again in the shadow of the slowdown. A successful IPO would have made for a higher valuation than its parent in India, Mahindra &
Mahindra. Nevertheless, its British parent British Telecom assured it of a business of at least Rs 720 crore for the next three years.

The company earned Rs 389
crore, up from Rs 234 crore in 1999-00. And exports remained the near complete
gameplan, notching up 96% of the revenues. Working on a 67-33 onsite-offshore model, Mahindra BT saw Europe emerge as the biggest contributor, bringing in 81%–however, this predominance of Europe was easily attibuted to the fact that most of the work done went to British Telecom, the other JV partner. The tieup with US-based Axiom was a highlight, aimed at entering the billing mediation solutions segment. A third development center was also set up, in
Bangalore.