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Covansys bets on India

Our Bureau

CHENNAI, Feb. 21.

FOLLOWING a slowdown in the US economy, Covansys Inc., formerly Complete Business Solutions Inc., will scale up its Indian operations to around 10,000 personnel in four to five years, from the present 1,800.

Of the $ 420-million turnover Covansys Inc. had reported in 2000, around 10 per cent came from its Indian operations, (Rs 140 crore turnover, with a 21 per cent net profit).

Mr Raj B Vattinkuti, Co-Chairman, Covansys Inc., told reporters here today that Covansys India would be the primary vehicle for the company's future plans. Recently the top level management in US was restructured, and the same would be done in India too, to focus more on providing solutions for various verticals, including telecom, finance and healthcare.

Covansys will focus on solutions showcase, and India would be the key provider of this showcase in every respect.

Mr Vattinkuti said plans for an Indian IPO were still on and the company was waiting for right market conditions.

Mr V V Sundaram, President, Covansys India, said the Indian operations were expected to report a 40-per cent growth in turnover this year, compared to last year.

For the company, the name change has been the third in the recent years, from Total Business Solutions to Complete Business Solutions, and now Covansys.

According to Mr Ned Lautenbach, Co-Chairman, Covansys, and Head, Clayton, Dubilier and Rice (CD&R), the company would be a $ 2-billion one in four to five years. CD&R, a private equity investment firm, last year invested $ 200 million in Covansys, for a 30-per cent equity stake.

Pic.: Mr Michael Bealmear, CEO, Covansys Inc, Mr Ned Lautenbach, co-chairman, and Mr Raj Vattikuti, founder and co-chairman, at a press meet in Chennai on Wednesday.

Picture by Shaju John