32 IMR India – Making A Comeback

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PRESIDENT/CEO: Santosh Bhargava * PRODUCTS AND SERVICES: Software Development, Consultancy * TECHNICAL COLLABORATION: IMR Inc. * START-UP YEAR: 1990 * EMPLOYEES: 1052 * QUALITY CERTIFICATION: BVQI ISO 9001 * ADDRESS: 38/1, Naganatuapula,
Singasandva, PO Bangalore, Bangalore 560068
* TEL: 8521275/237/253 * FAX: 8521268

PERFORMANCE HIGHLIGHTS

  • 89 percent growth over the previous year.
  • Acquired companies in the US, Europe, and Australia to consolidate its expertise in
    reengineering.

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The rank by itself does not tell the entire story. At rank 32, it has inched its
way closer to the Top 20 league. In 1996-97, it was ranked just outside 50, at rank 51.
More interestingly, the move into becoming one of the 50 leading IT companies in India was
done with a dramatic growth of 89.32 percent over Rs 51.58 crore to touch a turnover of Rs
97.66 crore in 1997-98. All the same, the comparison is not altogether correct, as its
turnover of Rs 51.58 crore for 1996-97 is for the nine-month period ending December 1996,
due to IMR Inc.’s decision to move IMR India’s accounting to calendar year.

Some of the contracts won in 1996-97 were completed only last year, thus impacting its
revenue for 1997-98. This sequence is seen in IMR’s group turnover, which in December 1997
(its financial year is calendar year) was $ 83 million or Rs 315 crore (at Rs 38 to a
dollar) as opposed to $ 27 million in 1996 (Rs 97 crore at Rs 36 to a dollar). Also, it
restricted itself to three areas-insurance, retail, and manufacturing, areas which
indicated growth potential-instead of spreading itself too thin. The revenue split between
the three are thus: insurance came first contributing 50 percent to the revenue, followed
by manufacturing at 35 percent, and retail at 15 percent.

Interestingly, its productivity per person has remained more or less the same at around
Rs 12 lakh. When compared to other software houses, this is on the lower side. It is so
since IMR India’s business operations are done on the basis of transfer price from IMR
Inc. unlike others.

Last year, IMR Inc. strategically acquired companies in the US, Europe, and Australia
to enable it to become a stronger player in the reengineering area. Similarly, it entered
into a partnership with a company in the US, which makes products for reengineering legacy
environment to web-enabled environment. It has opened up offices in Latin and Central
America, Eastern Europe, and South-East Asia with a bid to expand its operations and
spread its revenue base. Its business from Europe, with a little over 8 percent, is way
behind the US which contributed a hefty 91 percent. This equation is bound to change in
the current year, what with its acquisitions and new offices in other markets.

Anticipating the end of fabulous returns from the Y2K opportunity, it has already made
strategic moves to get into components-based application development. This again will be
restricted to five core areas-insurance, financial services and banking, utilities (power,
gas etc.), retail, manufacturing and healthcare. Listed on NASDAQ, IMR Inc.’s projected
turnover for this year is Rs 672 crore.

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