The Hindu : Karnataka / Bangalore News : `Companies should focus on strengths'

Online edition of India's National Newspaper
Friday, Oct 21, 2005

Karnataka

Karnataka - Bangalore

`Companies should focus on strengths'

Special Correspondent

Bangalore: Companies need to focus on their strengths rather than jump into newer businesses, said Chief Financial Officer of Tata Consultancy Services S. Mahalingam at the 45th Director's Power Breakfast series convened by the Asian Centre for Corporate Governance and the Bangalore Chamber of Industry and Commerce here on Thursday.

Mr. Mahalingam said: "Invariably the growth dimensions in an organisation are areas of service, technology, market, size and infrastructure. These have to be evaluated continuously and strategic changes have to be made to cope with the future challenges. Time has changed phenomenally in India since the Sixties; the growth of an organisation is dependent on its ability to adapt to the growing demands of the markets across the globe. A conscious effort has to be made to move up the value chain even if it means a major organisational restructuring."

Chamber president Anant R. Koppar said: "Companies achieve growth by many ways, some by organic and others through mergers and acquisitions. Organisations can grow internally by revenue, number of staff or grow by taking over other companies that have become common in India now.

"Managers must keep in mind that growth in itself is not synonymous with shareholder value as such value comes from profits and not from increase in revenues."

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