CMC: Year of Evolution

CEO & MD SS Ghosh Startup-Year 1976 Products & Services Systems integration, SW development, embedded systems, network integration, third-party maintenance, facility management and IT training Employees 3,368 Branches 10 Address 5th Floor, PTI Building, Sansad Marg, New Delhi Tel 23736151 Website www.cmcltd.com

SS Ghosh MD & CEO R Ramanan Deputy MD & COO JK Gupta CFO Saju James Head (HR & corporate communications) AS Rajadhyaksha GM & head (customer services) JS Rawalgaonkar Executive director (systems integration)

Net profit rose 10% over previous year Big projects won from Reserve Bank of India, Karnataka and Madhya Pradesh tax departments Services and software projects accounted for better earnings this fiscal Contracts in international market in the ports and cargo sector–offshore and onshore services

Knowledge base and proven track record, especially in the government space Geographical presence

Unconsolidated structure Insufficient exposure in the private sector, though TCS’ experience in this space will help

For CMC, Year 2002-03 was one of change, of a transformation for the better.
Last year, soon after its acquisition by Tata Consultancy Services, CMC had to
begin the task of getting a grip on life outside the fold of the public sector–in
the process, it had to contend with flat growth. In 2002-03, however, a year
after the acquisition, it evolved to emerge as the domestic arm of Tata
Consultancy Services, providing system and network integration, and facility
management services to domestic companies. It also managed to branch out in the
international arena, with the share of exports increasing to 17% of revenues. In
the final tally, revenues grew 11%, against a flat 2001-02.

A majority of the revenues came from government and BFSI projects–these
segments accounting for 50% of company’s domestic numbers. CMC found itself at
work with multi-crore government projects, such as computerizing the VAT regime
in Karnataka. In the BFSI space, the company bagged a project for networking 475
branches of a bank across the country–and installed PCs, servers and system
software in each of the branches. Toward the end of the fiscal, CMC bagged
projects worth nearly Rs 100 crore from the National Bank of Bahrain, Andhra
Bank, Bank of India and the RBI. The hardware business also had a fruitful year
as BFSI project wins beefed up revenues. The company also ventured into the
field of ERP implementation.

There was significant growth in international operations as well–both in
software and professional services–which CMC rendered in the US through BRI
Inc. In Europe, it undertook projects at Lucas Automotive Electronics and the
London Underground in the UK, Bremerhaven Ports in Germany, Toshiba Electronics
in Singapore and the Chittagong Stock Exchange in Bangladesh.

On the negative side, CMC’s education and training business suffered in
line with the rest of the industry. The company is planning to focus on new
courses in IT security, call center training and multimedia to rejuvenate this
business.