Tech Mahindra to widen its geographical reach

Telecommunications IT solutions provider Tech Mahindra has drawn up long term plans to expand its geographical range in order to tap new markets for growth.

At present, the company has clients from 62 countries worldwide, particularly from the US and Europe.

"We intend to further expand our presence in North America, where the share of our total revenues grew from 10 per cent in fiscal 2004 to 18 per cent in 2006. We are also concentrating on the Asia Pacific region, which we believe represents a significant growth opportunity for us," Tech Mahindra COO L Ravichandran told reporters here on Friday to announce the company's public issue.

He pointed out that in 2004, the company had clients from 24 countries. "In 2005, it grew to 45, in 2006, it reached 62, a positive sign. It is our intention to increase these numbers to expand our business. We have adopted strategies that will give us greater exposure to new clients," he added.

The company is also looking at acquisitions for growth. In November 2005, it acquired Bangalore-based Axes Technologies.

"This acquisition enabled us to significantly expand our presence in the telecom equipment manufacturing segment. We expect that our future growth will involve further acquisitions, joint ventures and other strategic initiatives," Ravichandran stated.

The company is expecting to raise about Rs 400 crore through the public issue.