Mahindra Renames Scandal-Plagued Satyam Computer
Tech Mahindra, the new owner of Satyam Computer Services, has re-christened the scandal-hit firm 'Mahindra Satyam', giving it a new brand identity.
The re-branding exercise reflects an amalgamation of the Mahindra Group's values with Satyam's expertise, retaining a part of Satyam's identity that signifies commitment, purpose and proficiency of the organisation and its people, according to Anand Mahindra, vice-chairman & managing director, Mahindra Group.
ET NOW had first reported on June 19 about a hybrid name being considered for Satyam Computer Services.
The brand of the country's fourth-largest software exporter took a beating, after its defamed founder B Ramalinga Raju floundered on corporate governance norms by fudging the books and perpetrating the country's largest-ever corporate fraud. The new identity 'Mahindra Satyam', could help erase Satyam's tainted image, feels the top management of the Mahindra group.
"This is a significant milestone towards the recovery of the company. We are optimistic that this new brand will re-energise the organisation and will be well-received by all our stakeholders. With this synergistic approach, Mahindra Satyam will learn from the best management practices of the Mahindra Group while focusing on nurturing Satyam's innate skills and capabilities," said Vineet Nayyar, executive vice-chairman, Satyam board.
The logo of the new brand will be adopted from the Mahindra group. However, for all legal purposes, the beleaguered IT firm will continue to be known as Satyam Computer Services, said a senior Satyam official.
The new brand name was revealed at a closed-door leadership meeting at the Satyam headquarters in Hyderabad. It will convey the synergies of Satyam, well-known for its expertise in areas such as enterprise resource planning, and Tech Mahindra's strength in telecom.
The top brass of both companies also formulated a go-to-market strategy on bidding for projects.
While Satyam and Tech Mahindra may bid independently for some projects, only one of them would bid in projects that require domain expertise. Satyam is perceived to be strong in the SAP and enterprise resource planning (ERP) areas, while its parent has a strong hold in the telecom, operational support systems (OSS) and business support systems (BSS) services.
Satyam has 42,000 employees on its rolls, but 10,000 of them have been placed on the virtual pool to trim personnel costs. Pune-based IT services firm Tech Mahindra, holds a 31% stake in Satyam.
Satyam reported a net profit of Rs 181 crore for the quarter ended December 31, 2008. The company's scrip fell by 1.77% to close at Rs 77.70 on BSE on Friday.
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