From: gnreddy@cbnewsf.att.com (G.Narotham Reddy)
Subject: Winds of Change, Performance of India's Top Software Companies 
Organization: AT&T
Date: Wed, 29 Jul 92 18:24:27 GMT


Source	: Dataquest, July 1992
Country	: India

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Software The Top Ten
--------------------

Revenues in Crores for 1991-92

TCS          160
TUL          52.4
COSL         15.3
WSL          15.7
*PSI         14.3
TI           10.2
Datamatics   10.0
Infosys      9.5
*Siemens     9.0

* New entrants.  Departures: Mahindra BT, Sonata. 


The Top Twenty: Growth Pattern

-----------------------------------------------------
Rank      Company                           Rs. Crore
-----------------------------------------------------
01        HCL-HP                            246.3
02        Wipro                             193.5
03        TCS                               160.2
04        Pertech Computers                 135.2
05        Electronics Corp of India Ltd     124.2
06        ICIM                              115.3
07        CMC                               114.2
08        Digitial Equipment India Ltd       84.0
09        Sterling                           72.1
10        Tata Unisys Ltd                    67.3
11        TVS Electronics                    52.5
12        ZENITH                             41.2
13        Modi Olivetti Ltd                  40.9
14        NIIT                               31.2
15        Larsen & Tourbo                    30.8
16        Electronics Systems Punjab Ltd     30.0
17        ET&T                               28.6
18        CMS                                26.4
19        Minicomp                           26.2
20        Rolta                              25.1
--
21        DCM Data Products
22        OMC Computers

-----------------------------
Total (1991):          1645.2
-----------------------------

Totals in  1987-88    1988-89  1990-91 

            812.3     1120.3   1438.8


Employee Productivity

---------------------------------------------------------------
                       Turnover           Productivity/employee
Company                ( Rs Lakh)

---------------------------------------------------------------
Siemens                 900                      11.0          
HP ISO                  189                       8.6
ITC                     766.14                    7.3
RS Software             463                       6.9
TUL                     6730                      6.4
Verifone                331.85                    6.0
Index computing         705                       5.8
PSI Data systems        2130                      5.5
Wipro systems           1470                      3.4
Softek                  300.6                     1.7
---------------------------------------------------------------


Software: The Domestic Leaders
---------------------------------------------------
                       Revenue           Revenues      
Company                (Rs crore)
                       1991-92           1990-91
---------------------------------------------------

TCS                      31.9              24.72
MN Dastur                6.5                NA
TUL                      6.0                5.52
Sonata                   5.7                3.59
Datamatics               4.5                2.85
Wipro Systems            3.9                2.4
Mafatlal Cons Svcs       3.8                2.05
ITC                      3.6                1.25
Mastek                   3.5                2.45
Computer Vision          3.5                 NA
---------------------------------------------------
This table includes only companies whose major area 
of operations is software.


Winds of change:

At the very top, little has changed.  HCL-HP goes on growing,
maintaining an impressive 40% annual growth over the past four 
years.  Wipro looks set to remain at number two for some time to come.
	Number three is a surprise: for the first time ever, it's a
software company.  TCS grew 50 percent, the first of the indicators
this year of software's growing strength in the Indian IT industry,
and the Tata company vaulted past even  PCL.  the latter too
maintained its growth, and moved up one slot.
	The loser in the top end: CMC, whose revenues went down 20 per
cent, and whose rank slipped to 7.  But with the public sector
ed the Club, vaulting 45 rungs
from its 65th industry ranking last year.  No less spectacular were
the entries of ET&T (up 13 steps) and CMS ( up 9 steps).
	NIIT, which is missed an entry last year, is well entrenched
this time: at number 14.  The training institute has shown impressive,
and consistent growth, achieving 40% over last year and averaging
64%(CAGR) in the four years.
	But so have other training institutes, outside the Top Twenty.
the Rs 17 crore Apple industries gew 71% this year to reach the 28th
industry rank. The Rs 21 crore Datapro is bigger still, at rank 24,
but has an array of other revenue sources such as datacom equipment.
The computer training arena will get hotter this year, as more
institutes scramble for tieups with foreign institutions and Indian
accreditation, and stiff competition takes off, such as the
Harvard-linked ICA.
	Will others in the Top Twenty take up a part of this huge
market, Digital already has, and though it has kept a low profile in
training, it is expanding its activities in the field.
	Nelco headed the Top Twenty departures list.  The headless
Tata Company, a former Top Ten regular, performed poorly in datacom
and other computer-related areas. DCM DP went down eight steps and
out of the Top Twenty, with estimated revenues down 44% and its work
force down 20%.  This year it hopes to do better and wipe off losses,
with a sharper focus on high-margin value-added sales, and exports of
boards and software.
	Hinditron's revenues shoed a 46% drop as its management split
up; it moved out of micros and retained value-added reselling of
hardware. Its turnover fell to under Rs 14 crore from over Rs 25
crore last year, because of the split.
	OMC's sales dropped marginally, and it slipped three rungs and
out of the Top Twenty.  This reflected a slowdown of the CAD market
last year, including PC CAD sales.
	PSI Bull India's revenues dropped 7%, and it too slipped three
rungs.  Even though it performed will in software exports - over Ts 14
crore of it - and set up a private STP.
	The Top Twenty's productivity figures show expected trends.
Sterling, which operates almost entirely through dealers, whose one of
the highest figures: over 20 lakh per employee, Interestingly, most of
the Top Twenty are above the industry average ( for hardware) of Rs
8.7 lakh - the bigger companies are apparently more efficient, and
more productive, contrary to what is expected. 
	One company missing from the Top Twenty is the SEEPZ-based
Tandon Group, which manufactures and exports hardware.  The group's
performance details were unavailable, and the only figure given was an
approximate turnover - over Rs 65 crore - that came a month too late
to be verified and included.  Going by the figure, Tandon, which
exports to GC areas including the US, Europe and Singapore, would have
been ranged number 11 in the Top Twenty, and Rolta would have been
out.	
	Among those whose respective market-share percentages are down
are HCL-HP, Wipro, ECIL and CMC.  With the industry standard growing
bigger, the Top Twenty;s cumulative share of the market had declined
by 4%. Yet, this group of Twenty still accounts for 61% of the
industry's revenues.  The next Twenty's share is up fractionally, from
11.8 to 12.1 %. this set of the companies have strengthened their
cumulative share of the industry revenues by 4 percent points - thanks
to some medium size companies growing quickly and new companies
joining in.

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