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SharePlans to position its services in the high value-added segment
MUMBAI: Tata Elxsi, a provider of customised design solutions to companies, is planning a facility in the UK.
Last month, the company announced its tie-up with Proassist, one of Japan's leading providers of product system development services in embedded control electronics.
Tata Elxsi operates three business units -- software development & services, product design services and innovative design & engineering.
The innovative design & engineering unit will have an overseas facility besides India.
This unit offers innovative and creative design solutions across a wide range of industries, ranging from transportation, FMCG products and medical equipment to consumer electronics.
Syamal Gupta, chairman, Tata Elxsi, said the innovative design & engineering business unit was considering setting up a design studio in the UK.
"A leading international market for design services, the design studio in the UK would help position the company's services in the high value-added segment," he said.
Currently, the financial aspects for setting up the design studio and other details are being worked out. An announcement is expected to be made by Tata Elxsi sometime mid-September.
During last fiscal, the company posted a 30% increase in turnover from Rs 308 crore in 2006-07 to Rs 402 crore. Its profit before tax witnessed a marginal increase from Rs 60.53 crore to Rs 61.34 crore and profit after tax from Rs 52.12 crore toRs 52.22 crore.
Explaining the reasons behind such a marginal growth in revenues, Gupta said the year started with a sharp and un-forecasted appreciation of the rupee against all foreign currencies, in which the company invoiced its customers. And this appreciation sustained largely throughout the year in the case of the dollar and the pound with the appreciation reversing during the latter part of the year in the case of the euro and the yen.
During the year, the company set up facilities in Hyderabad and Coimbatore. An additional engineering and delivery capacity in Bangalore near its corporate office became operational followed by commissioning of the first phase of its self-owned campus in Trivandrum.
Gupta said, "The creation of this additional capacity, required for accelerating growth over the next two years, had its impact in the year under review through increase in employee-base, infrastructure and interest costs."
t_ashish@dnaindia.net
