BUSINESS

Mastek earmarks Rs 300 crore for Chennai campus

By BS Reporter in Chennai
September 18, 2006 13:16 IST

Mastek Ltd, Mumbai-based software solutions provider, has chalked out a Rs 300-crore (Rs 3 billion) investment plan for the next five years to build its software development campus in Chennai, which would be its third location after Mumbai and Pune in the country.

The proposed Chennai campus would have capacity for about 5,000 people.

Talking to reporters, K Nagarajan, vice president, Chennai development centre, Mastek, said the company had already bought 17 acres of land in Mahindra City, a special economic zone near Chennai and the first phase of the facility was expected to be ready by 2008.

The campus in Mahindra City would have four development facilities with each having a capacity for about 1,000 people.

However, the company is likely to commence its operations in Chennai in the next three months with a team strength of 100-120 professionals from a different facility.

This  Chennai team would cater to mainframe related areas.

The company would raise Rs 300 crore through internal accruals. Nagarajan said the company had cash and cash equivalent of $40 million.

The expansion in Chennai comes on the back of expected growth in customer acquistions in the insurance segment in the US and UK, he said adding that Chennai would be the engine of growth in its chosen insurance and mainframe capability areas.

The company's customer base comprises 30 life insurance companies across the globe, including eight of the global top 20 majors.

The UK presently accounts for over 60 per cent of its revenue and the company is planning to expand its business in the US in future.

As part of this plan, last year the company relocated its group chief executive officer to the US and carried out a number of campaigns over the last one year there.

The company, which focuses on insurance, financial services and government, reported a turnover of $156 million (about Rs 702 crore or Rs 7.02 billion) and a net profit of $15.3 million (about Rs 69 crore or Rs 690 million) for the year ended June 2006.

It employs 3,200 people globally.

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BS Reporter in Chennai
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