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TCS eyes 22% sales from manufacturing practice

BS Corporate Bureau

Tata Consultancy Services is targeting around 22 per cent revenues from the manufacturing practice segment, one of the key industry practice areas.

Out of this, 10-15 per cent will come from the high-end consulting and industry-specific solutions.

Manufacturing practice currently contributes around 15 per cent to the Tata group's infotech arm or around Rs 4.50 billion in sales.

"Manufacturing practice is going to form one of our key growth areas for the future," said S Ramadorai, chief executive officer, TCS.

He said, "The use of information technology-based solutions in the manufacturing sector offers a significant opportunity to the industry to enhance competitive advantage by improving productivity."

TCS currently provides consulting and IT-based solutions to a wide spectrum of continuous process as well as discrete manufacturing industries, and is looking at branding its products in the area.

The company is also looking at hiking its team of 60 domain specialists, which will grow to 120 by March 2002.

Approximately 4,000 consultants are being billing on software development assignments for manufacturing companies.

According to Ravi Gopinath, one of the key members of TCS' manufacturing and process industry practice business, "TCS has developed considerable amount of domain expertise in providing solutions to the domestic and global manufacturing industry. Our focus is to create and develop technology solutions that demonstrate a clear value proposition to our customers in today's dynamic business environment."

TCS' solutions focus largely on business drivers such as supply chain optimisation, production optimisation and enterprise asset management.

The company, in the manufacturing practice, is focused on sectors such as cement, automotive and auto-components, refining and chemicals, and minerals and metals.

TCS has been working with the cement industry in India for the last seven years and have developed an intellectual property right product for the segment -- Cempac. The product has already been implemented and delivering measurable value at several cement plants.

The company is at present looking at taking the product to global markets as point solutions. TCS has clients such as ACC, Gujarat Ambuja and Lafarge India. It is looking at becoming Lafarge's solutions partner as well.

The second IPR product that TCS has is 'FactorE' which is a computerised maintenance management product.

In terms of geographical reach for the manufacturing practice, TCS is eyeing the Asia-Pacific region as a critical growth area. The company's headquarters in Singapore will provide the reach and accessibility in the region.

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