Mahindra Satyam, the rechristened Satyam Computer Services, will merge with Tech Mahindra as part of an effort to promote greater synergies.
“It is only logical as there are a lot of synergies between the two companies, but I cannot give a definite date as to when it will happen,” Mr Vineet Nayyar, Vice-Chairman of Tech Mahindra, said at a press conference here on Tuesday.
Both Mahindra Satyam and Tech Mahindra will exist under the Mahindra group umbrella, but will act as one entity.
“There will be congruence and convergence in their operations. For better governance, both are also contemplating a common board of governance,” he added.
Gurnani, new CEO
The press meet was held to announce appointments of the new executives at Mahindra Satyam. Mr C. P. Gurnani, Head of Global Operations of Tech Mahindra, is now CEO (of Mahindra Satyam) while Mr Sanjay Kalra, who was President (Strategic Initiative) at Tech Mahindra, has been elevated as the CEO.
Mr S. Durga Shankar is the new Chief Financial Officer of Mahindra Satyam while Mr Vineet Nayyar takes over as Vice-Chairman. Mr Kiran Karnik will remain Chairman.
Mr Nayyar reiterated that there would be no encore of the fraud that shook Satyam and corporate India when it was made public months ago. The company would now focus on operational efficiency as one of its top priorities.
According to him, the biggest challenge is to get Mahindra Satyam back on the growth path.
“Before doing that, we need to stabilise its operations. Of the 9,000 employees on the virtual bench in Mahindra Satyam, about 500 have been reinstated,” he said.
Immediate task
Mr Anand Mahindra, Chairman of Tech Mahindra, said, “We want to be the leader in the IT field and that is our vision for Mahindra Satyam. But right now, the immediate task is to bring the company back on track.”
Mr Gurnani said that Mahindra Satyam had the benefit of being associated with the 65-year-old Mahindra brand. The company would also get 110 customers of Tech Mahindra for the Enterprises Services Business. Its management would be reorganised and an announcement in this direction will be made in the next couple of days.
“Since April 13, attrition has been nearly zero at Mahindra Satyam. We have added a number of new customers since then, but cannot share more details now during this silent period of the open offer,” Mr Gurnani said.
Source: The Hindu Businessline