The offshore development centre would come up at the Mahendra Industrial park in Chennai's suburbs, head of India business division, K Nagarajan said at Mastek's headquarters in Mumbai.
The company proposed to invest Rs 200 to Rs 250 crore (Rs 2-2.5 billion) in the next five years at the centre, its chief financial officer Jamshed said.
Nagarajan said the Centre would be Mastek's largest facility employing about 5000 people. The facilities at Mumbai and Pune together employs over 3,200 people, he said.
The Centre would be totally dedicated to the company's government and insurance clients, who formed the core of its business. The company would go ahead with setting up the Centre at a rented building initially in the city, with about 100 people, he said.
With Tamil Nadu opting for VAT from January 2007, Mastek had very good prospects as it was offering a software to several state governments to manage the VAT regime, he said.
Though the Chennai centre would essentially be used for software exports, it will also serve domestic customers, Jamshed said.
Floated by a group of first generation entrepreneurs, led by Ashank Desay, R Sundar and Ketan Mehta as a small enterprise in Mumbai in 1982, the company has grown to register a turnover of Rs 701.10 crore (Rs 7.01 billion) in the last fiscal, earning a profit of Rs 69 crore (Rs 690 million), he said.
The company would soon come out with new hybrid products for insurance policy administration, which would reduce the cost per policy by 30 per cent, he said. Another platform to support the acquisition of four insurance companies with a consolidated base of more than 2.5 billion policies were also on the anvil, he said.
For large multinational companies, Mastek would offer 'incentive compensation management solution' to support their products throughout the globe, he said.
