Presentation to Analysts




       Your IT Partner



                         CMC Limited
isclaimers


 This presentation includes statements which may constitute forward-looking
 statements. These forward-lookin...
genda

. Company Overview and Strategy

. Customer Services SBU

. Systems Integration SBU

. ITeS SBU

. Education & Trai...
1. Company Overview and Strategy
ision Statement

We shall operate globally and bring the benefit of Information Technology to continuously
improve the pro...
MC - Pre Acquisition


n Incorporation of      n CMC takes up the              n Aligns business focus        n Partial Di...
MC - Post Acquisition

                                                      350
Significant focus on growth through value...
verview of Company

                                                26%                     51%
                          ...
rganisation Chart

                                            S Ramadorai
                                               ...
i Company Overview and Strategy - Business Model
usiness Model

                                                           Vertical Domain Expertise




                  ...
iversified Business Mix(1)

                                                                                              ...
1 Financial Performance: Segmental Revenue(1)


                                                                          ...
trategic Business Units
                       System Integration               Customer Services                Education...
nternational Operations

CMC provides end-to-end IT solutions to international clients through its international operation...
ii. Company Overview and Strategy - Key Differentiators
ey Differentiators


                                                              Wide range of service
                 ...
Strong Growth Projected in Key Segments
               (Rs. Cr)
                                                          ...
ide Range of Service Offerings & Domain Expertise


                 Banking & Finance




                               ...
arge Project Execution Capability – Indian Railways
           Background                                   Key Challenges...
trong Sales and Support Reach within Domestic Market
                                                                     ...
ell Recognized R&D Capabilities

Vision –To develop comercially viable, high quality IT products and services using state-...
izeable Resource Pool

Employee strength as of 30th November, 2003 - 3,074


     Experience-wise Break-up of Employees   ...
iii   Company Overview and Strategy - Strategy
ndustry Growth Drivers

Increased investments by financial institutions and banks in upgrading IT infrastructure

Increase...
MC Strategy


                        Value added services



                    Leverage domain expertise



           ...
MC Strategy


                      Integrated end-to-end solutions
                  n

                      Focus on la...
Transportation - Rail, Road and Shipping - Our Service Offering

Railways
Ø   Design and develop a complete software solut...
anking - Our Current Offerings

Core banking – TC/4 – Retail, Treasury, Trade Finance, Risk Management

e-banking products...
ecurities – Our Offering Suites


                             Mints    DpSecure
         Back-Office


         Interface...
nsurance – Our Service Offerings

Product / Solution development for existing clients

Research and development covers Bus...
iometric Security

Finger Print Analysis & Criminal Tracing System (FACTS) is the CMC Flag ship product in the area
of Bio...
MC Strategy

                        Quality & excellence initiatives: CMM, CMMI, TBEM
                    n

Focus on Qua...
SCADA

Products
Ø   OSKER - Unix based SCADA Product
Ø   Winspire – Windows based SCADA Product
Ø   SETSS - RDSO approved ...
MC - SWOT

Strengths
Ø   Business model, combines both Hardware maintenance, IT services & IP portfolio for international ...
MC - SWOT

Weaknesses
Ø   Revenues mainly from price-sensitive domestic business
Ø   High exposure to government entities ...
ey Differentiators - Summary


                                                              Wide range of service
       ...
2. Customer Services SBU
verview

2002-03 revenues from Customer Services (CS) – Rs. 336.10 crs, CAGR for the last 5 years-
17%

H1 revenues from C...
fferings of CS SBU

Hardware Support
Ø   Sizing/Configuration/Specking
Ø   EQS
Ø   ICW Services




Networking
Ø   Design
...
arket analysis

Govt. Dominated market
Ø   Slow decision-making process

Sluggish growth in Govt. Sector

Competiton from ...
echnology trends

Technology
Ø   High multiplier effect on CMC’s share in total business segment growth
Ø   Embedded syste...
MC’s Value Proposition
  Business strengths




                                                                          ...
rocess driven

ITIL service management processes

24x7 call despatch center at all CMC offices

Stores, spares available a...
ervice Network




                             Chandigarh
                               New Delhi
                      ...
trategy

Value Added Services
Ø   Integrated end-to-end solution
Ø   Focus on large complex projects with other SBUs
Ø   S...
trategy

Leveraging partner’s strength
q    OEMs, Group companies

International Marketing

Franchising low `value-added’ ...
3. Systems Integration SBU
verview

2002-03 Revenues from Systems Integration(SI) – Rs.9634 lacs, CAGR for the last 5 years-19%

H1 Revenues from SI ...
arket Requirements

Current Market Requirements
Ø   Ready to deliver products
Ø   Integrated end-to-end solutions
Ø   Spee...
arket Analysis - Domestic

The Domestic Market Opportunities
Ø   Government
        N Tier Solutions, E-Security, E-paymen...
arket Analysis

The International Market Opportunities
Ø   Products & Solutions Market
        MEA, East Europe, Some of t...
ur Market Differentiators

Large product portfolio

Proven domain expertise

Leader in domestic SI business

Major share i...
ertical Industry Practices



                    Banking & Finance




                                                  ...
omain Expertise & Market Share

                                  n Domestic Market Position
Niche Verticals

Ø   Securiti...
elivery Strategy

Delivery Strategy and Processes
Type                         System Integrator Role                 Indu...
everaging the Domain

Securities – Various stock exchanges

Fingerprint System – Criminal and Civilian applications

Defen...
roject Delivery Strategy

Skills Upgradation strategy
Ø   Domain Skills
        –    Tie-up with Partners - Oracle, MS
   ...
roject Delivery Strategy

Quality/ Productivity improvement strategy
Ø   CMM KPAs in place
         Metrics collection in ...
elivery Process

Delivery Teams
Ø   Technology Based teams
Ø   Delivery Head - Project Manager
Ø   Continuous customer int...
ajor Strengths - Recap

Large product base

Fast delivery and implementation

Continuous technology upgradation

Leading e...
ey Challenges for CMC

Competition from smaller companies

Shortened project life cycles

Increased Demand for COTS

Press...
ur current value proposition

Long term trusted partner
Ø   CMC is always willing to travel that extra mile to ensure the ...
4. ITeS SBU
verview

2002-03 Revenue 3100 Lacs, CAGR 45% for the last 3 years

H1 Revenues from ITeS – Rs. 1747 lacs

Significant dome...
MC’s service offerings leverage on its strengths

INDONET - Data Center & Business Continuity Services

INDOCZ - Document ...
MC’s Target Markets

DOMESTIC
Ø   Expanding forms processing market
Ø   Expanding cards preparation business
Ø   Consolida...
arget Markets

INTERNATIONAL
Ø   Management of Data Centres
Ø   Call Centres for Mfg./ Banking/ Insurance Industries
Ø   W...
arket Segments – Key

Judiciary

Central and State Govt. Departments

Banks, Finance,Insurance and Securites

Licensing / ...
arket Segments – target for the near term

Publishing Houses, Libraries

Transport

Manufacturing

Oil Companies

Telecom ...
Analysis of the market and CMC’s offering




                                     CMC Limited
he global ITES and BPO industries are growing at a rapid pace
       World-wide ITES market breakout by process area
     ...
rowth drivers for the ITES industry




                                                                                  ...
he Indian market has shown significant growth in various segments


   Indian performance 2000-01                         ...
ompetitor Analysis

Many competitors are CMC’s vendors

Price advantage due to lower overheads

Smaller outfits
Ø   Quicke...
MC Value Proposition

                                                    Well versed with 24x7
                         P...
n-house Infrastructure

Competency centers at Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad

Amtrix EDI engine ...
uperior Service Delivery Framework

                               Strategic
                               Planning
     ...
elivery Capabilities

CMC aligns all its IT infrastructure Management activities in line with the processes as
specified i...
ur Strategic Partners

NEWGEN & Fortune Informatics - Document Management and work flow solutions

Top Image Systems, Isra...
nternational Market Strategy

Leverage TCS presence in the worldwide marketplace and position ITES as a cost effective
off...
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CMC Research Presentation

  1. 1. Presentation to Analysts Your IT Partner CMC Limited
  2. 2. isclaimers This presentation includes statements which may constitute forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. Although the company believes that the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. These are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. This document is being supplied solely for information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied in whole or in part, for any purpose without the consent of the company in writing. CMC Limited
  3. 3. genda . Company Overview and Strategy . Customer Services SBU . Systems Integration SBU . ITeS SBU . Education & Training SBU . HR Overview . Financials and Subsidiary Company Overview CMC Limited
  4. 4. 1. Company Overview and Strategy
  5. 5. ision Statement We shall operate globally and bring the benefit of Information Technology to continuously improve the productivity of our customers and quality of their products and services As a part of TATA group, we shall align ourselves with the TCS vision – Global Top 10 by 2010 We shall be a vibrant organization where openness, trust, team work, simplicity and innovations are valued and promoted CMC Limited CMC Limited
  6. 6. MC - Pre Acquisition n Incorporation of n CMC takes up the n Aligns business focus n Partial Divestment by n Reorganises Computer maintenance of 800 along vertical markets GoI businesses into five Maintenance IBM installations like transportation, strategic business Corporation Limited spread across India. mining, power and units Initiates training banking courses n Sets up INDONET predominantly to clients 1975 1976 1978 1984 1986 1991 1992 1993 1995 2001 n Commences n Diversifies activities n Acquires Baton n Listing on Indian n Tata Sons Limited operations to include “turnkey” Rouge International Bourses acquires 51% stake projects, IT Inc. in USA – a step in CMC education, software towards globalisation development. (renamed as CMC Renamed CMC Americas, Inc. in Limited 2003) CMC Limited
  7. 7. MC - Post Acquisition 350 Significant focus on growth through value Acquisition by TCS addition & synergies 300 Ø Focus on international markets by leveraging CMC’s knowledge base and TCS’ international presence 250 Ø Leverage on domain skills to provide IT centric solutions 200 Ports l Stock exchange 150 l Banking l 100 Ø Adoption of TCS best practices 50 0 Apr-01 J ul-01 Oc t-01 J a n-02 Apr-02 J ul-02 Oc t-02 J a n-03 Apr-03 J ul-03 Oc t-03 CMC SENSEX CMC Limited
  8. 8. verview of Company 26% 51% Government of India Tata Sons (“GoI”) 23% Public shareholders 100% CMC Strategic Business Units CMC Americas, Systems Customer Education & ITES Inc. Integration Services Training n International n Project n Hardware supply n Software and n Value added EDI Services implementation, & support hardware training network, Forms integration & services, network through 200 processing, Web Maintenance of design / centres to design and software products / implementation corporate and hosting, data solutions services retail clientele centre services CMC Limited
  9. 9. rganisation Chart S Ramadorai Chairman R Ramanan Managing Director & CEO Geography Industry Practice Strategic Business Unit Corporate Function Bhushan Mohan C V Rammohan A S Rajyadaksha JK Gupta India – North BFSI Customer Services CFO Chinta Prakash G Bhulokam S Balakrishanan S V Ramanan India – South Shipping Systems Integration HR, Internal Systems, Planning & Quality Corporate Communications S Balakrishanan SPS Mahindroo Saibal Ghosh India – West Defense Education & Training Chinta Prakash R&D A K Bhattacharya Rathin Roy V Rajaraman India – East Insurance ITES Vivek Agarwal Company Secy. & Legal Rajiv Mathur Bhushan Mohan Americas Transportation G Venkatraman K C Rehani Europe E-governance Vinodh Lakshaman A K Singh MEA Mining CMC Limited
  10. 10. i Company Overview and Strategy - Business Model
  11. 11. usiness Model Vertical Domain Expertise Oil & Gas, Electrical Energy E-Governance Financial Services Banking, Insurance, Industrial Defense Railways, Ports, State Transport Mining etc. Transport Capital Markets System Integration Technology Expertise Software Products and Development Infrastructure Management Education & Training Matrix Structure to Provide Value Added Services to Clients CMC Limited
  12. 12. iversified Business Mix(1) FY03 FY02 Customer Services 16% 15% 4% System Integration 5% 4% 9% ITES 55% 54% Educational Training 20% 14% International 3% 1% Others Growth 80% 60% 40% 55.7% 43.7% 20% 6.8% 13.9% 0% -20% -49.4% -40% -60% Customer Services System Integration ITES Educational Training International Growth driven by International business - effective leveraging of TCS (1) Standalone financials ; Year ending March 31 CMC Limited
  13. 13. 1 Financial Performance: Segmental Revenue(1) FY04 FY03 20% Customer Services 4% 11% System Integration 6% 5% ITES 63% 2% Educational Training International 46% 23% 17% Others 2% 1% 1) Standalone financials CMC Limited CMC Limited
  14. 14. trategic Business Units System Integration Customer Services Education & Training ITES n Systems Consultancy n Third party maintenance of n Entry level courses n Corporate Intranet hardware and software n Software products and n Professional Development n Network management, n Equipment Supply and customized solution courses Managed Data Network Integration Services, Help Desk n Software maintenance n Vendor certified courses n Networking Services and n EDI n Turnkey Projects n Customised courses for Consultancy n Database services specific training needs of n Environmental Engineering companies n Web design & hosting and Facilities Management Services Offered n Career Development n Forms Processing n Developed a range of courses n Data Centre Services products n Degree Corses ØElectronic communications, networking, message handling systems, DGPS based vehicle tracking system etc. n Over 1000 trained n Present in over 150 n 200 training centers n Over 70 trained people professionals with expertise resident services locations catering to 25,000 students n Supports TCP/IP and X25 on different platforms and over 500 non-resident every year protocols service locations n 100 people strong Real Ø6 owned centres n 64 kbps leased links n The only company Time/Embedded Systems located in Ahmedabad, connections across 9 cities group worldwide to support 40 Bangalore, Calcutta, - Delhi, Mumbai, Calcutta, different manufacturers like Chennai, Hyderabad, n Experience on range of Chennai, Bangalore, IBM, HP, Compaq, Sun, Mumbai, New Delhi, areas like –BFSI, Image Hyderabad, Ahmedabad, Silicon Graphics, CISCO, Pune, Vishakapatnam Skills / processing & Biometrics, Pune, Vizag Entrasys Ø15 in association with SCADA solutions, Real n Redundant data links at Infrastructure n Expertise in IVR solutions, Time/embedded systems, leading educational each location ensure higher e-Commerce, e- Credit Card Authorisation institutions like RECs, reliability & uptime Governance, Mobile services, Internet / Intranet Jadavpur University, Computing, Multimedia, services, Smart Cards and IMT Ghaziabad & Large scale Database POS terminals Calcutta, Engg. Staff Solutions College of India ØApprox. 180 franchisee centres spread over the country CMC Limited
  15. 15. nternational Operations CMC provides end-to-end IT solutions to international clients through its international operations and CMC Americas Skills & Infrastructure Services Offered n Custom software design and n Around 700 professionals working on development international projects n IT, e-business process consulting n Relationships with leading US Companies predominantly through n Turnkey project design, implementation staffing services and management in a variety of n 10 offices in the USA, one each in the industries UK and Dubai n IS / IT outsourcing n IS / IT staffing CMC Limited
  16. 16. ii. Company Overview and Strategy - Key Differentiators
  17. 17. ey Differentiators Wide range of service Strong Growth in Key offerings & domain Segments expertise Large project execution Sizeable Resource Pool capability Well Recognised R&D Strong client base capabilities Sales and support reach in the domestic market CMC Limited
  18. 18. Strong Growth Projected in Key Segments (Rs. Cr) Domestic IT Market 60,000 Total Rs.55,925 Cr % 4,975 .0 20 50,000 = R G CA 13,865 40,000 10.0% % 6.6 4,499 1 R= G CA 20.6% 4,053 30,000 Total Rs.26,952 Cr 22.5% 4,838 3,393 15.8% 5.4% 6,546 20,000 Total Rs.17,002 Cr 12.2% 30.5% 1,996 2,897 2,257 7.2% 2,947 23,695 25.0% 3,055 22.3% 1,620 10,000 1,234 13.9% 2,070 9,705 15.9% 6,234 0 FY00 FY03 FY07E Systems Peripherals Networking Packaged Software Domestic Services Others Domestic IT market has recorded strong growth in the past and is expected to grow similar rates in the medium term as well Source: Dataquest for the period FY00 - FY03 and IDC for FY07E CMC Limited
  19. 19. ide Range of Service Offerings & Domain Expertise Banking & Finance Transportation E-Governance Criminology Insurance Defense Power Mining Customer Services and System Integration vices n TC/4 Retail n GENISYS - n Container n OSKER - n NIRDESHAK - n Air defense n FACTS - n VISTA/VOICE meworks/ Banking Branch and Handling SCADA based GPS based handling Completely n Healthcare System division Systems energy and vehicles systems automated solutions tware automation power tracking fingerprint n VECTOR - n Cargo n Radar data n Treasury ets solutions system identification n Interactive Stock Management processing management and retrieval n Load Dispatch n CRYSTAL - Exchange Voice Systems systems n Networking solution System for Response Mine planning n Railway n Distribution n Airfield lighting Online Trading Systems package Reservations automation and control n VEDAS - n ERP for mines systems n Freight n Sub Station Depository n Embedded Management automation Solutions software n Hardware n Demand side n DIGIPURSE systems solutions management n ARTS n CUPS CMC has a vast depository of ready packages and software CMC Limited
  20. 20. arge Project Execution Capability – Indian Railways Background Key Challenges Key Achievements n IMPRESS n Over than 10 mm passengers a day Delivery of very large engagement on turnkey basis in short time frame. Ø Change management from manual to Over 250,000 freight wagons & 7000 computerized reservation and ticketing n locomotives Scalable, maintainable, extendable, secure and reliable solution: Open architecture Ø Proliferation of system to remote locations Over 6,000 passenger trains everyday n Development of state-of-the-art solution: Multi Ø Creating a robust passenger reservation Over 8,000 railway stations technology platforms, more than 3000 system with > 99.5% uptime 15 Zones and 68 divisions subroutines and 800000 lines of computer code n FOIS Over 20,000 stock items at 200 depots Ø Implementation at over 80 districts with over 2000 users Ø >99.5% uptime n FOIS - Enhanced functionality covering goods sheds and wagon reporting with 3 tier Ø Setting up all India Communication application software using Oracle and Tuxedo network Middelware n ARTS Project Objectives Ø Rugged hardware with embedded software to meet stringent data security n Arts - Universal ticketing counters requirement Design and develop a complete software solution to implement an integrated multi- n MMIS passenger reservation system (IMPRESS) Ø Robust online system to integrate 5 n MMIS - Handling 10000 complex material Freight Management (FOIS) functional modules transactions per day, more than 1000 forms, 2000 reports and 500 queries Ticketing of Unreserved passengers (ARTS) Ø Replicate data from remote places n MMIS - Developed Work Flow system Materials Management (MMIS) management unique to Indian railways We have track record in executing large, multi-location projects on time and at high quality standards CMC Limited
  21. 21. trong Sales and Support Reach within Domestic Market Regional Offices Corporate Office Branch Offices R&D Centre Chandigarh New Delhi Jaipur Lucknow Ahmedabad Vadodara Calcutta Mumbai Pune Visakhapatnam Hyderabad Bangalore Chennai Well established sales and services network across the country Strength of Sales & Marketing team – over 200 employees 1 Employee numbers as on November 30, 2003 CMC Limited
  22. 22. ell Recognized R&D Capabilities Vision –To develop comercially viable, high quality IT products and services using state-of-art technology to contribute to CMC’s long and medium term business goals. Key activities include : Ø Development of products Ø Development of technology to support business activities of SBUs With over 200 employees CMC’s R&D division forms the nucleus of CMC’s product development n Real-Time Systems Group Key Technology n Embedded Systems Group Groups n Pervasive Computing Group n Image processing and pattern recognition n Pervasive computing n Process Control Areas of n Networking and communications Specialization n Object oriented methodologies n Real time embedded systems n Internet security and e-commerce CMC Limited
  23. 23. izeable Resource Pool Employee strength as of 30th November, 2003 - 3,074 Experience-wise Break-up of Employees Qualification-wise Break-up of Employees 10 to 15 >15 yrs Diplomas yrs 16% 12% Others 8% 2% < 2 yrs to 10 yrs 15% 26% Post Gradua Graduates & 59% Profess als 2 to 5 yrs 27% 35% 50% of Regular employees have more than 5 Large resource pool of trained engineers in years of experience. This pool serves as a diverse technologies with varied skill sets helps resource for CMC’s complex project management in end-to-end service delivery capabilities CMC Limited
  24. 24. iii Company Overview and Strategy - Strategy
  25. 25. ndustry Growth Drivers Increased investments by financial institutions and banks in upgrading IT infrastructure Increased investment in IT by central & state governments Ø e-governance initiatives: AP, Karnataka, Tamil Nadu Ø Automation initiatives: revenue & land records On-going reform & restructuring in power sector with increased use of IT Investments by Indian Corporates in IT to enhance competitiveness Leverage Domain expertise for International projects CMC Limited
  26. 26. MC Strategy Value added services Leverage domain expertise Leverage Group synergies Focus on quality and internal efficiencies Focus on international market Customer focused R&D CMC Limited
  27. 27. MC Strategy Integrated end-to-end solutions n Focus on large complex projects with multiple SBUs n Strategic partnerships with Value Added n Services Large customers n Vendors n Academic institutions n Transportation - rail, road and shipping n Banking, Financial institutions and Insurance Leverage Domain n Expertise Power and Mining sector n Biometric security n Joint bidding for large domestic projects Leverage Group n Synergies Leverage marketing network for international business n CMC Limited
  28. 28. Transportation - Rail, Road and Shipping - Our Service Offering Railways Ø Design and develop a complete software solution to implement an integrated multi-passenger reservation system (IMPRESS) Ø Freight Management (FOIS) Ø Ticketing of Unreserved passengers (ARTS) Ø Materials Management (MMIS) Shipping Ø Products MACH (MArine Container Handling System) - for container terminals l CALM (CArgo Logistics Management System) catering to Bulk, Break-bulk & Ro-Ro operations l WARM (WARehouse Management System) l SWIM (SoftWare for Intelligent Messaging System) - An EDI engine l Ø Services IT Consultancy Services, Professional Services, Training, Project Management Services, Software Implementation l Services, Migration Services, System Integration, On-site Support Services, Remote support services NIRDESHAK – DGPS based Vehicle Tracking System ARTS / POS – Ticketing Solutions CMC Limited
  29. 29. anking - Our Current Offerings Core banking – TC/4 – Retail, Treasury, Trade Finance, Risk Management e-banking products - Gate-e-way, e-cheque, Credit card, WISeBank, I-Cert, Cheque Truncation Branch banking – BRAINS 2000 Coop banks - B2K & COINS Home Loan System Payroll & HRMS DpSecure Services – Networking, Infrastructure development, Hardware supply and maintenance, Facilities management Education and Training Authentication service Event Notification Service CMC Limited
  30. 30. ecurities – Our Offering Suites Mints DpSecure Back-Office Interfaces MULTEX ITS Stock Exchange BOLT VECTOR DTSS eVECTOR GILT BBS Commodities Exchange DTSS Clearing & Settlement VSTAR DTSS Depositories VeDAS CMC Limited
  31. 31. nsurance – Our Service Offerings Product / Solution development for existing clients Research and development covers Business requirements & new technology Maintenance and Technical Support to clients Product Upgrade and Version Management Regular in house training programs Proactive market development through Interactions/ presentations/ demonstrations l Participation in seminars/ conferences l Products Ø GENISYS (General Insurance Systems), GENISYS Enterprise, GENISYS Configurator Ø PROMPT (Call Registration & Management S/W) Ø InFAcS (Integrated Financial Accounting System) CMC Limited CMC Limited
  32. 32. iometric Security Finger Print Analysis & Criminal Tracing System (FACTS) is the CMC Flag ship product in the area of Biometrics. Activity Scope includes providing Fingerprint based person identification solutions to : Ø Law Enforcement Segment Ø Civilian Segments Product line includes ; Ø FACTS Central: High-end full fledged AFIS Ø FACTS Finder: Scaled-down AFIS on a desktop Ø FACTS Remote Query Terminal: Limited featured AFIS on a desktop Ø Criminal Attribute Database: Criminal non fingerprint Attribute database CMC Limited CMC Limited
  33. 33. MC Strategy Quality & excellence initiatives: CMM, CMMI, TBEM n Focus on Quality Certification drive: ITIL, CCIE, CCNA n & Internal Marketing excellence: Mark@cmc n Efficiencies Improving manpower utilization n Focus on Improving reach: Dubai office n International Geography focus: developing strategy for - CIS, Ibero America, Middle east n Markets and Leveraging domestic project experience for private sector and international markets Indian pvt sector n Smart card n SCADA / Metering solution Customer n Focussed R&D Finger printing for civilian applications n GPS / GIS n CMC Limited
  34. 34. SCADA Products Ø OSKER - Unix based SCADA Product Ø Winspire – Windows based SCADA Product Ø SETSS - RDSO approved Standard Electric Traction Scada Software Ø Distribution Management System(DMS) and Energy Management System(EMS) for better monitoring, analysis, operations and coordination of power distribution network and power transmission network Key Focus Areas Ø Power - Generation, Transmission, Distribution Ø Oil & Pipeline Ø Transportation Ø Process Automation CMC Limited CMC Limited A TATA Enterprise
  35. 35. MC - SWOT Strengths Ø Business model, combines both Hardware maintenance, IT services & IP portfolio for international and domestic markets Successful transition from hardware maintenance provider to a solution provider of full cycle complex projects l Multi-faceted experience l Leverage on domain skills to provide IT-centric solutions l Ø Largest third party maintenance company in India Ø Repository of ready packages/software that can be replicated Ø Large client base, serviced over the years, that can be efficiently leveraged for greater wallet share through cross-selling Ø Trusted and Respected brand – Combination of ethics & culture of the TATA group and positive PSU legacy Opportunities Ø Growth through value addition and synergies Ø Surging domestic IT demand Ø Potential for leveraging domestic skills in international market and with private sector clients Ø Leveraging product suites in various projects Ø Platfom to launch and bid for large end-to-end IT services/infrastructure management projects, jointly with TCS CMC Limited
  36. 36. MC - SWOT Weaknesses Ø Revenues mainly from price-sensitive domestic business Ø High exposure to government entities (Railways, Ports, Defence, Customs) Ø End-user industries and complex nature of projects lead to long sales cycles Ø Pressure on employee costs Ø CS/SI businesses witnessing emerging models with higher capital intensity Threats Ø Global IT companies entering Indian market expected to intensify competition Ø Revenues dependent on IT spending budgets CMC Limited
  37. 37. ey Differentiators - Summary Wide range of service Strong Growth in Key offerings & domain Segments expertise Large project execution Sizeable Resource Pool capability Well Recognised R&D Strong client base capabilities Sales and support reach in the domestic market CMC Limited
  38. 38. 2. Customer Services SBU
  39. 39. verview 2002-03 revenues from Customer Services (CS) – Rs. 336.10 crs, CAGR for the last 5 years- 17% H1 revenues from CS – Rs.216.07 crs Service offerings Ø Facility Management - Help Desk Management Ø Desktop Management - Server Management - Network Management Security - N/w Security, Audit Storage – SAN, NAS Building Management System – Video conferencing, Access control, AV system CMC Limited
  40. 40. fferings of CS SBU Hardware Support Ø Sizing/Configuration/Specking Ø EQS Ø ICW Services Networking Ø Design Ø Topology Ø Implementation Ø Support/NOC Ø N/W Audit CMC Limited
  41. 41. arket analysis Govt. Dominated market Ø Slow decision-making process Sluggish growth in Govt. Sector Competiton from local PC manufacturers Emergence of new competition Non-Conventional payment models - e.g. Lease, BOOT, Rental ASP model Pricing pressure - depleting margins Contd. CMC Limited
  42. 42. echnology trends Technology Ø High multiplier effect on CMC’s share in total business segment growth Ø Embedded systems Ø Remote Infrastructure Management System(RIMS) Ø BPO/IT Outsourcing Ø Network Operating Centre (NOC) CMC Limited
  43. 43. MC’s Value Proposition Business strengths Service strengths n Multi vendor support n Geographical spread n 18 major offices n Highly skilled manpower n 180 service locations n One point support to customers, including n 520 non-resident locations EES n Regular training and certificationprograms n Tie-ups with industry leaders Technology strengths n Accreditations Global strengths Ø Cisco - Silver partner n IP Telephony Ø Microsoft - GOLD and MAPS n Wireless LAN Ø Sun - SCFE n Security/VPN Ø IBM - ASP n Storage solutions n Tie-up with industry leaders n Video conferencing Ø IBM, HP, Cisco, Enterasys, Sun, Silicon graphics, Stratus, CA, Microsoft, Oracle etc. CMC Limited
  44. 44. rocess driven ITIL service management processes 24x7 call despatch center at all CMC offices Stores, spares available at each CMC office and at major customer locations Escalation procedure CMC Limited
  45. 45. ervice Network Chandigarh New Delhi Lucknow Jaipur Calcutta Ahmedabad Nagpur Mumbai Pune Visakhapatnam Hyderabad Bangalore Chennai CMC Limited
  46. 46. trategy Value Added Services Ø Integrated end-to-end solution Ø Focus on large complex projects with other SBUs Ø Strategic partnership with large customer/ OEMs Ø High-end value added jobs Leveraging Domain Expertise Ø Transportation – GIS/GPS Ø Mining/ Power - RTS/SCADA/GIS Ø Biometric security Contd. CMC Limited
  47. 47. trategy Leveraging partner’s strength q OEMs, Group companies International Marketing Franchising low `value-added’ business Targeting private corporates Disaster recovery solutions Focus on quality & internal processes q TBEM, CMMI, OLPICS Diversification Certification -ITIL, CCIE CMC Limited
  48. 48. 3. Systems Integration SBU
  49. 49. verview 2002-03 Revenues from Systems Integration(SI) – Rs.9634 lacs, CAGR for the last 5 years-19% H1 Revenues from SI – Rs.3810 lacs Systems Consultancy Product Development § § Requirement Analysis Target Markets § § Specifications Analysis Product Specifications § § Design and Integration Product Core Groups (IP) Service Offerings § § Solutioning Development and Upgrades § § Software Audits Deployment, Support, Maintenance § Security Audits Systems Development § Program/Project Management § Software Development § Integration § Deployment § Support and Maintenance § Training § Onshore and Offsite Projects CMC Limited
  50. 50. arket Requirements Current Market Requirements Ø Ready to deliver products Ø Integrated end-to-end solutions Ø Speedy delivery and geographically spread implementations Ø Price sensitive Ø State-of-the-art, N -Tier, WEB enabled, WAP Based, Latest version Ø Growing interest in E-commerce based applications Ø Enhanced support and maintenance Ø IT enabled services CMC Limited
  51. 51. arket Analysis - Domestic The Domestic Market Opportunities Ø Government N Tier Solutions, E-Security, E-payments, Wide area networks l Potential of Re-engineering legacy systems as well as new prospects Ø Private Sector Large ERP based solutions l Packaged solutions (COTS) l Provide Implementation and Maintenance Support for Packaged Products CMC Limited
  52. 52. arket Analysis The International Market Opportunities Ø Products & Solutions Market MEA, East Europe, Some of the APAC countries l – Banking – Securities – Biometrics – Transport Potential of Re-engineering legacy systems Ø Professional Services Offshore and Onsite l US, Western Europe l – Various Domains e.g.. Power, control systems, e-Gov applications – Technologies such as RDBMS, DWH, Unix, C, C++, VB, VC++ etc, N Tier CMC Limited
  53. 53. ur Market Differentiators Large product portfolio Proven domain expertise Leader in domestic SI business Major share in domestic market Nation-wide service and support network Excellent track record of large turnkey projects Perceived by the market as the organisation having Ø Reliability Ø Responsiveness Ø capabilities to be a long term partner CMC Limited
  54. 54. ertical Industry Practices Banking & Finance Transportation E-Governance Criminology Insurance Defense Power Mining n TC/4 Retail n GENISYS - n Container n OSKER - n NIRDESHAK - n Air defense n FACTS - n VISTA/VOICE Frameworks/ Banking Branch and Handling SCADA based GPS based handling Completely n Healthcare System division Systems energy and vehicles systems automated solutions Software automation power tracking fingerprint n VECTOR - n Cargo n Radar data n Treasury Assets solutions system identification n Interactive Stock Management processing management and retrieval n Load Dispatch n CRYSTAL - Exchange Voice Systems systems n Networking solution System for Response Mine planning n Railway n Distribution n Airfield lighting n CM Info System n Police Station Online Trading Systems package Reservations automation and control n Commercial Computer- n VEDAS - n ERP for mines systems n Freight n Sub Station Taxes isation Depository n Embedded Management automation Solutions software n Hardware n Demand side n DIGIPURSE systems solutions management n ARTS n CUPS CMC has a vast depository of easily customisable packages and software CMC Limited
  55. 55. omain Expertise & Market Share n Domestic Market Position Niche Verticals Ø Securities, Stock Exchanges Ø Dominant Ø Insurance Ø Dominant Ø Fingerprint Technology Ø Market Leader Ø Defense Ø Major Key projects Ø E-Governance Ø Major Player CMC Limited
  56. 56. elivery Strategy Delivery Strategy and Processes Type System Integrator Role Industry Practice Role TurnKey Implementation and PM Sizing, Customisation, Product delivery, Pilot Implementation Own Products Implementation and PM Customisation, Delivery, Pilot Implementation Third party products Implementation and PM Identification, Relationship management with the third party One time delivery of third Delivery and Implementation Relationship management with the third party party products Services Delivery, Implementation and support Customer relationship Training Delivery and Support Identification, Relationship management CMC Limited
  57. 57. everaging the Domain Securities – Various stock exchanges Fingerprint System – Criminal and Civilian applications Defense - Embedded Systems, Real Time Systems, High end SW development, Simulation Power - Distribution Automation, SCADA, Energy Management, Utility Billing Transportation - Passenger Reservation, Freight Management, Ticketing Systems, POS, Marine Container Handling, Cargo management E-Governance - RDBMS, 3 Tier applications, large systems integration, Delivery platforms, common application groups CMC Limited
  58. 58. roject Delivery Strategy Skills Upgradation strategy Ø Domain Skills – Tie-up with Partners - Oracle, MS – Empanel Domain Consultants – Participating in Seminars/ Workshops etc. Ø Technology Skills – Keeping track of emerging technology trends and – Identifying training needs – Encourage to achieve technology certification – Sustain specialist groups in application area – Build System and Application architecture groups CMC Limited
  59. 59. roject Delivery Strategy Quality/ Productivity improvement strategy Ø CMM KPAs in place Metrics collection in Practice l All delivery centres at level 5 by 2nd Quarter 2004-05 l Relationship/ Account Management strategy Ø Identifying Accounts to be managed by IP or SI Champions Ø Placing Delivery Personnel in the regions to own all delivery responsibilities CMC Limited
  60. 60. elivery Process Delivery Teams Ø Technology Based teams Ø Delivery Head - Project Manager Ø Continuous customer interactions through reviews Ø Project Monitoring Tools Ø Customer feedback/complaints system Ø Compliant redressal Ø Support and Maintenance strategy Ø Release management Ø Configuration Management CMC Limited
  61. 61. ajor Strengths - Recap Large product base Fast delivery and implementation Continuous technology upgradation Leading edge technologies Global Exposure Leverage Product based solutions CMC Limited
  62. 62. ey Challenges for CMC Competition from smaller companies Shortened project life cycles Increased Demand for COTS Pressure on margins Global majors in domestic market CMC Limited
  63. 63. ur current value proposition Long term trusted partner Ø CMC is always willing to travel that extra mile to ensure the success of the project and to partner with the customer through his business cycle CMC offers win win solution to its customers based on long term customerretention strategy CMC Limited
  64. 64. 4. ITeS SBU
  65. 65. verview 2002-03 Revenue 3100 Lacs, CAGR 45% for the last 3 years H1 Revenues from ITeS – Rs. 1747 lacs Significant domestic presence in the forms processing market Leading supplier for Election Commission of India Have set up over 15 corporate web sites which could be expanded to provide composite services Have a largely satisfied customer base Executing the largest ICR project in the country CMC Limited
  66. 66. MC’s service offerings leverage on its strengths INDONET - Data Center & Business Continuity Services INDOCZ - Document Management Services INDUCTZ - Examination / Recruitment Services INDORZ - Facilities Management Services INDITEZ - Web Design and Hosting Services INDIVIZ - Smartcard & Biometric Security Solutions CMC Limited
  67. 67. MC’s Target Markets DOMESTIC Ø Expanding forms processing market Ø Expanding cards preparation business Ø Consolidation of business in web hosting/ portals/ ISP sectors Ø EDI in core sectors yet to take off Ø Data storage/ Archival/ Warehousing yet to take off Ø IT Enabled Services Call Centres operational l Niche markets exist l CMC Limited
  68. 68. arget Markets INTERNATIONAL Ø Management of Data Centres Ø Call Centres for Mfg./ Banking/ Insurance Industries Ø Web design/ development/ hosting Services Ø Professional Services Ø Data migration Ø Digitizing , Archival and Retrieval Services Ø BPO for HR, SCM , Sales automation CMC Limited
  69. 69. arket Segments – Key Judiciary Central and State Govt. Departments Banks, Finance,Insurance and Securites Licensing / Registration Depts. – Land Records , Ration Cards, Election Commission, RTO, Toll, etc.) Educational Institutes CMC Limited
  70. 70. arket Segments – target for the near term Publishing Houses, Libraries Transport Manufacturing Oil Companies Telecom Companies Power Services CMC Limited
  71. 71. Analysis of the market and CMC’s offering CMC Limited
  72. 72. he global ITES and BPO industries are growing at a rapid pace World-wide ITES market breakout by process area World-wide BPO market (Total US$ 208 bn) World-wide BPO market (Total US$543bn) breakout by Process Area 1999 breakout by Process Area 2004 P a ym e n t P a ym e n t S e rvic e s HR S e rvic e s 8% HR 13% 9% 14% Fin a n c e & Fin a n c e & Ac c ou n tin g Ac c ou n tin g Mfg. Mfg . 6% 7% S e rvic e s Services Ad m in is tra tion Ad m in is tra tion 44% 49% 4% 4% S a le s /Mktg ./ S a le s /Mktg ./ Cu s tom e r Ca re Cu s tom e r Ca re Dis trib u tion / Dis trib u tion / 5% 5% Log is tic s Log is tic s 15% 15% Source: Gartner Dataquest World-wide ITES market breakout by geography World-wide BPO market (Total US$ 208 bn) World-wide BPO market (Total US$543bn) `breakout by breakout by Geography 1999 Process Area 2004 Latin Am eric a La tin Am e ric a 2% 2% J ap an Res t of th e R e s t o f the J a pa n 3% W orld Wo rld 4% Can ad a 1% C a na da 1% 4% 4% As ia/P acific As ia /P a c ific 5% 5% Un ited S tates Unite d S ta te s 54% E u rop e 52% 31% Euro pe 32% Source: Gartner Dataquest CMC Limited
  73. 73. rowth drivers for the ITES industry 35% 30.1% 24.3% Strategic Benefits 20.4% • Reduction in risk of technological obsolescence % of Respondents 17.5% • Reduction in overall management burden while 16.5% 15.5% retaining control of strategic decision making • Keep pace with changing standards 11.7% 8.7% 7.8% 7.8% 6.8% 6.8% 3.9% Drivers to Ousourcing 0% During Deliver Provide Good & Responsive Customer Service Be Flexible Deliver on time Don't Overpromise Be Financially stable Focus on Service Quality Be a Strategic Player Focus on Cost Reduction Add value to the Client's Business Have Proven References Display Technological Leadership Clearly Communicate with Client Focus on Understanding the Company's Business Cost reduction Skill expertise benefits Attention on core activities • Savings on manpower and • Improved speed of service training costs • Leveraging provides • Improved efficiency investments in technology, • Reduced operating costs • Avoidance of capex on non- methodology and people core activities • Reduced overheads • Providers expertise derived • Increased customer • Avoidance of cost of chasing from standardisation satisfaction technology • Access to best practices and proven methodologies The singlemost important reason however, seems to emanate from the cost advantages of outsourcing CMC Limited
  74. 74. he Indian market has shown significant growth in various segments Indian performance 2000-01 US$ mn CAGR 1999-00 2000-01 Growth 2007-08F (2001-08F) Customer interaction 92 184 112% 4,198 57.1% Backoffice / HR / Accounting / 218 293 42% 4,407 48.0% Finance / Data entry Content development / Animation / 188 347 95% 5,247 48.1% Engineering Division Market Research / Remote 25 30 27% 2,309 86.5% Education / Consultancy Transcription, Translation 28 35 33% 840 58.4% Total 550 890 62% 17,000 47.0% Source: Nasscom Indian firms are graduating from IT-enabled services (part subcontracting by a BPO vendor or outsourcing of activities as opposed to a function) to building BPO capabilities Share of global wallet is still meager at 0.5% by value (source : IDC) CMC Limited
  75. 75. ompetitor Analysis Many competitors are CMC’s vendors Price advantage due to lower overheads Smaller outfits Ø Quicker to react on investments Ø Have fragmented market share CMC Limited
  76. 76. MC Value Proposition Well versed with 24x7 Providing these Services operational support for over 25 years In the process of acquiring Certified CMM level 5 Professionals certification Proven Competency in Why Strategic Alliance with Major supporting Clients using the SW/HW CMC ? OnSite - Offshore Model Networking Vendors Working hand in hand R&D (Tools, with Fortune 500 Methodology) Companies TCS support Large Number of Success Stories CMC Limited
  77. 77. n-house Infrastructure Competency centers at Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad Amtrix EDI engine and robust examination processing & election roll management sw Reliable IP based Indonet network 24 x 7 Data centers at all metros CMC Limited
  78. 78. uperior Service Delivery Framework Strategic Planning Ex Pe ce o p lle le nc e Performance Measurement Quality Assurance Operational Process Customer Excellence Excellence Satisfaction Customer feedback Best Practices MSQ nc y lle og e c e ol MSQ Ex chn Customer Te Satisfaction Survey MSQ Enhance Business Value through Continuous Improvement CMC Limited
  79. 79. elivery Capabilities CMC aligns all its IT infrastructure Management activities in line with the processes as specified in the IT Infrastructure Library Follows best practices in IT Service Management Ø Change Management Ø Configuration Management Ø Problem Management Ø Release Management CMC Limited
  80. 80. ur Strategic Partners NEWGEN & Fortune Informatics - Document Management and work flow solutions Top Image Systems, Israel - ICR / OCR imaging solutions Inspira Sw - Asset and Infrastructure Management DPS Technologies - CAD / CAE / GIS Solutions Newtec, Belgium - 2 way satellite based digital video broadcast Solutions TISL - Datacenter mangement Tata Net - Satellite based IP network Datastrip, UK - card based identity solutions CMC Limited
  81. 81. nternational Market Strategy Leverage TCS presence in the worldwide marketplace and position ITES as a cost effective offshore outsource facility Replicate our success in key customer CMC Limited
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