• Home
• /
• Local business

Mahindra Satyam Aims to Double Business in ME

Mahindra Satyam is seeking to rebound from a $1 billion corporate fraud scandal at Satyam Computers that brought Satyam close it collapse. Mahindra Satyam’s client base in the Middle East is intact, and its new management is taking the necessary steps to restore the confidence of its customers, said Atul Kunwar, the company’s Head of Business Development and Operations. “We have not lost any customer in the region,” he said, declining to provide revenues figures because the company is in its silent period before announcing its latest earnings.

“We stand by the commitment to revive and succeed in this rather challenging marketplace sooner, and are optimistic that we will be able to do so.” Mahindra Satyam has almost 200 customers across the Middle East, Kunwar said.“The Middle East region is a cornerstone of our growth strategy and we are doubly committed with renewed vigour to add value to our customers in the region,” he said. “We plan to leverage Satyam’s strong presence in this region in achieving our top priorities, which include retaining current customers and wining back business lost as a result of the crisis ... (and) acquiring new business.”

Mahindra Satyam introduced its new brand and company name to clients in the Gulf region late on Monday. The rebranding is a consequence of the 31 per cent stake that Tech Mahindra Limited secured in Satyam Computers after Satyam shocked investors in January with the revelation that it had overstated its profits for years. Tech Mahindra is a systems integrator and consulting firm.

“As of now, Mahindra Satyam is an independent entity. The details of a potential merger have still not been decided. It would be subject to all legal liabilities and regulatory approvals being addressed, if such a step would be decided by the board,” Kunwar said.

He said the new management is committed to improve corporate governance and ties with customers. The company’s shares have rallied 64 per cent since Tech Mahindra won control at an auction in April.

Dubai a regional hub

Kunwar, Mahindra Satyam’s newly appointed regional head, said that Dubai would remain its regional base of operations. “We have been operating out of a central location in Dubai for more than a decade, and we service other Middle Eastern markets with Dubai as a base and will continue to do so in the future,” he said.

“Specific to UAE, we have been extensively focusing on the banking, aviation and public services sector across the enterprise applications space and we will want to spread our wings into other verticals and technology areas.”

Satyam Computers has seen triple-digit year-on-year growth in most GCC countries. It tripled its Middle East revenues in the second quarter of financial year 2009 compared to same quarter in the previous year.

The Middle East accounts for almost three per cent of the global revenues of the company and remains a focal point in the company’s future expansion period. The UAE has contributed about 38 per cent of Middle East revenues for Satyam Computers. Kuwait, Qatar and Bahrain are its other major markets in the Middle East.

muzaffarrizvi@khaleejtimes.com