TCS explores merger of group firms

The country's leading information technology (IT) services provider, Tata Consultancy Services (TCS), will explore the option of merging some of its group companies

Speaking at the company's second Annual General Meeting (AGM), Tata Group chairman, Ratan N Tata, said: "It makes sense merging some of the group companies. However, Tata Elxsi is into animation and will be a standalone business." He, however, did not specify any name. IT solutions provider CMC, Elxsi and Tata Technologies are the other IT companies of the group.


Answering a shareholder's concern on why Indian IT companies cannot be the next Microsoft or Cisco of the world, Tata remarked: "This is something that I have been discussing with Rama (Ramadorai). But I feel that products come from markets that are close to such market places and US provides that market. We might look at creating a product group in US and treat it as a venture capitalist activity by TCS." The Tata group company, he added, is aiming to become one of the top 10 global IT companies by 2010.

(Source: Business Standard )