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A marriage made in heaven

Zafar Anjum | March 23, 2012
Post-merger, we will be more aggressive in AP, says Rohit Gandhi, Mahindra Satyam’s managing director for the Asia Pacific.

Name of the merged entities

One thing that was missing from the merger announcement was the single brand name of the merged companies.

"Name will be decided once the legal formalities are through," explained Rohit. "Probably around that time, the name will be sort of decided and announced. Today, we didn't want to do it because it will confuse the marketplace."

However, the new creature definitely will have a single identity. "It will be a single entity, a single brand name, and the management structure will be a lot more formal," he said.

Impact on operations and structure

The announced merger will not have any impact on the two companies' organisational structure for now.

"Nothing formal as yet in terms of organisational changes will take place till the legal approvals are there," he clarified. "I think now we will start synergising a lot more closely. Also, there will be a lot of preparatory work for the final merger like rationalisation of HR structures and things like that. Those cannot start commencing in a formal way."

"The good news is that since we were in two separate segments, there is not any turmoil of any kind," he said, referring to Tech Mahindra's strengths in the telecom area and Mahindra Satyam's in all the other verticals. "Probably very complementary."

Eye on growth in telecom sector

There have been reports about the sluggishness of the telecom sector and Tech Mahindra's performance getting a hit from that slowness in the vertical. Rohit sees it play out differently. "Telecom will also grow, in my opinion," he said. "Things will change; the offerings will change. Telecom companies know that voice revenues are falling but all of them are investing big time in whole media network and machine-to-machine communications. I think the revenue mix will change. Maybe telecom's canvas will increase. Maybe Apple could become our customer. Telecom, IT, mechanical stuff, they are all merging actually. That's good from the point of view of the Mahindra legacy. For example, car is becoming a computer, and a communication device."

More aggressive in the AP market

"In the AP market, we will go a little more aggressive," said Rohit. "Satyam never had any significant operation in the Philippines, Indonesia, and New Zealand. Now, we will go very aggressive on that because now we can leverage the base quite seamlessly. From Tech Mahindra's perspective, we never looked at North Asia-China, Korea, Japan-that seriously. Now, given this base of Satyam in those countries, we will go more aggressive because today Tech Mahindra, for example, doesn't utilise any of the China delivery centres of Satyam. Therefore, there is no concrete offering to China telcos from Mahindra Satyam. Now, there can be (offerings). So, we will go very aggressive now in mutual synergies."

 

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