HTMT adopts a Hybrid Growth Strategy

Mumbai, December 22, 2004:

HTMT has decided to adopt a hybrid strategy for growth in its information technology business comprising of both organic & inorganic growth within and outside the country.

As part of its organic growth strategy and to enhance its global delivery model, HTMT has recently decided to open a BPO centre in Mauritius. Apart from using this centre for executing additional claim processing business for its most referenced and satisfied US based Healthcare insurance client, it would also act as a Business continuity planning centre for HTMT’s Indian BPO operations. A presence in Mauritius would also enable HTMT offer French based BPO for potential customers in France given the availability of French speaking skills in Mauritius and will help HTMT overcome cross country related issues.

The inorganic growth strategy of the Company is already well underway with recently completed buy out of 100% stake in ‘Source One Communications Inc, USA’ (SOC) & controlling interest in Customer Contact Centre Inc, Philippines (c3). These acquisition added about 1400 additional seats in 3 locations outside India, 22 new marquee clients in 6 new verticals to its existing business taking the Company’s employee strength to 3600 worldwide engaged in consistently delivering a wide range of high quality services in ITS/ITES-BPO segments to over 35 leading companies.

Going forward, HTMT is actively looking out for further inorganic growth opportunities in both IT Services & ITES services and has necessary resources for doing the same. A debt free company, HTMT has sufficient cash balances, liquid investments in shares of few listed companies, investment in a 50-acre land at Bangalore and the most valuable investment in Fascel which provides mobile telephone services in Gujarat State under “Hutch” brand.

With FIPB’s approval of Hutchison’s application for consolidation of its four associate cellular ventures – Hutchison Essar Telecom, Hutchison Telecom East, Fascel and Hutchison Essar South with Hutchison Max, the Fascel consolidation into Hutchison is now in motion. On consolidation, HTMT’s stake in Fascel through its subsidiary ‘IndusInd Telecom Network Limited’ (ITNL) will result in 5.11% control of voting rights or 3.45% effective financial stake in the consolidated Hutch entity.

As per the current capital market valuations of comparable players in the industry, Hutch’s consolidated entity could command a valuation which is substantially higher than US$ 3.5 billion, the old valuation assessment of the entity by Merchant Bankers / Industry sources / business journals. HTMT has received couple of offers from some financial / strategic investors to buy out its holding in Hutch prior to the proposed IPO which are being evaluated for maximizing shareholder returns.

According to Mr. Thiagarajan, MD & CEO “ This hybrid organic & inorganic growth strategy and the new Mauritius centre take HTMT further up in the league of global players. While we are in the process of these integrating these companies with our Indian operations, we also plan to leverage the same by bidding for new contracts and additional work from existing clients for execution from India, USA, Philippines, Canada & Mauritius. We are constantly on look out for opportunities for new acquisition and developing strategic partnerships that fit with our aggressive growth plan, expands our market and add new expertise and intellectual capital to the Company “.

For more information please contact:

Ms. Sharmila Banerjee, Vice President (Corporate Communications)
Phone No.: 24960707    Extn. 208
Mobile: 9821301212.