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Tata Consultancy Services plans to overhaul its organizational structure with specialized groups targeted to help startups as well as large global firms as Asia’s largest software outsourcing provider gears up to double its revenues to $50 billion before 2030, according to people familiar.

The Mumbai-based company will create four internal teams -- a business transformation group, incubation group, enterprise growth and another aimed at new business models, according to people familiar who didn’t want to be identified as the details are private. TCS is expected to present this proposed new structure at its board meeting this week, said one of the people.

The rejig is aimed at aligning TCS, India’s second-largest company by market value, with the changing needs of its clients who are increasingly looking to digitise in the post-Covid-19 world and the boom in startups. India’s IT services sector has been on a roll, buoyed by the pandemic-induced rush among enterprises to transform into work-from-anywhere, digital businesses, boosting growth and making it a $227 billion industry by end of March.

A spokesperson for the company said TCS won’t comment on internal business plans or strategies.

Business Journey

TCS’s new structure is based on where its customers are in their business journey, the people said. It factors in, for instance, that a sub-$5 billion start-up would have a very different set of technology and business requirements than a large global corporation.

TCS, which employs over half-a-million around the world, the bulk of them in India, reported $25 billion in revenues for the year ended Dec. 31. Riding the sector boom, TCS and its rivals Infosys Ltd. and HCL Technologies have been signing on new customers, expanding contracts and hiring software programmers by the thousands every quarter.

The outsourcing giant, part of the Tata Group, is also planning to open a dozen innovation centers globally including the US and Europe, according to one of the people familiar.

TCS, however, will need to manage its surging staff costs that partly led to the outsourcer missing analyst estimates on profit last quarter. The company provides a suite of services from cloud to data analytics and infrastructure management to world’s largest companies including Citigroup Inc., General Motors Co., Woolworths Group Ltd. and Petronas Gas Bhd.

Also Read | Sachin Bansal-led Navi Technologies plans Rs 4,000 cr IPO, filing DRHP soon

Navi Technologies is planning to raise Rs 4,000 crore in fresh capital through an initial public offering (IPO). The company is expected to file its draft red herring prospectus with market regulator Sebi this week, said people in the know.

ICICI Securities, BofA and Axis Capital are the investment banks handling the share sale.

The company declined to comment on a query sent by Business Standard on its IPO plans.

Navi Tech is co-founded and promoted by Flipkart co-founder Sachin Bansal.

Sources said the IPO could hit the market during the first quarter of next financial year. The company will use the proceeds to fuel its growth.

Navi Tech is a tech-driven financial products and services company. Its key offerings include personal loans, housing loans, general insurance and mutual funds (MFs).

Founded in 2018, the company with its digital-first approach has tried to disrupt the businesses it operates in. For instance, in the MF space it has launched the exchange traded funds (ETFs) with lowest fee structure. In personal loans, it instantly offers loans of up Rs 20 lakh through a completely paperless process.

Till date, Bansal has invested around Rs 4,000 crore into the firm.

In 2019, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore and entered the microfinance segment. Chaitanya had also applied for a universal banking licence from the Reserve Bank of India (RBI). Navi’s loan book size is about Rs 3,500 crore.

Navi MF had acquired assets of Essel MF in 2021. The data from Association of Mutual Funds in India (Amfi) shows that Navi MF has assets of Rs 930 crore as of December quarter.

The company turned profitable in FY21, posting a consolidated profit of Rs 71 crore with a total income of Rs 780 crore and expenditure of Rs 673 crore.

Also Read |  Delhi court grants CBI 7-day custodial interrogation of Chitra Ramkrishna

A Delhi court on Monday granted CBI seven-day custodial interrogation of ex-MD & CEO of NSE Chitra Ramkrishna in co-location scam case.

The CBI produced the former managing director and chief executive officer of National Stock Exchange (NSE) before special Special Judge Sanjeev Aggarwal and had sought 14-day custodial interrogation in the case.

The CBI arrested the accused on Sunday after her anticipatory bail application was dismissed by the court on Saturday.

The CBI had recently questioned Ramkrishna in the matter. The Income Tax (I-T) Department earlier raided various premises linked to Ramkrishna in Mumbai and Chennai.

Ramkrishna has been on the radar of the Securities and Exchange Board of India (SEBI).

The CBI court had recently sent Anand Subramanian, former Group Operating Officer and advisor to Ramkrishna, to CBI custody. He was arrested by the CBI from Chennai.

The arrest was made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country's largest stock exchange.

The CBI is probing the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers.

Earlier, SEBI penalized the NSE, Ramkrishna and Ravi Narayan and two other officials for lapses in recruitment at the senior level. Ravi Narain was the MD and CEO of the National Stock Exchange from April 1994 till March 2013, while Chitra Ramkrishna was MD and CEO of the NSE from April 2013 to December 2016.

Sebi observed that the NSE and its top executives violated securities contract norms relating to the appointment of Subramanian as group operating officer and advisor to the managing director.

Article Source:- Business Standard

Also Read| Rupee trades at record low of 76.96 a dollar on soaring crude prices

TV Mohandas Pai has sought the finance ministry's intervention in the industry's relationship with the Reserve Bank of India (RBI), saying the central bank "doesn't listen" and does not respond to letters.

"If you write a letter to RBI asking for an approval, they don't reply. You have to hire a Big 4 (accounting firm) to go to Bombay, walk on the tables, and get your approval. It's a sad reality of India. Please accept that," Pai, chairman of Aarin Capital and Manipal Global Education, said at an interaction with the top brass of the finance ministry, including Finance Minister Nirmala Sitharaman, in Bengaluru on March 7.

Finance ministry officials are currently visiting various cities and holding post-budget interactions with stakeholders.

Pai's initial grouse was to do with tax and Employee Stock Ownership Plans (ESOP) of start-ups. According to Pai, 40 of India's 93 unicorns are based outside India because of RBI regulations and related compliance issues.

"It is a mess. RBI doesn't listen. We have gone to them many times. If you can take a meeting and listen to us with the RBI, we will be very grateful," Pai told the finance minister and her secretaries.

Ajay Seth, the Department of Economic Affairs secretary and an RBI board member, defended the central bank.

"It will be a loose comment to make that RBI does not listen. They will not agree with your viewpoint. We here, we have heard all your suggestions very carefully. We consider them. We find some of them not feasible and we don't act upon it. Others, we act upon it. If you feel there is an issue with the RBI that has any fiscal element, any policy issue for the government, we will be all ears," Seth said.

However, Pai doubled down on his complaint, saying matters had not improved despite him having personally spoken to RBI Governor Shaktikanta Das.

"I spoke to Dr Rajan (former RBI governor Raghuram Rajan), he came to Bangalore and tried to improve matters. It improved. I spoke to Shaktikanta Das in Bombay. I met him several times, spoke to him. But we don't see an improvement. It's not like interacting with you. They don't respond to letters," Pai said.

"Why can't you have a status where everybody has to respond to a query and give an approval within 45 days. Then the problem will be solved. We have to hire a Big 4. Pay them money. They go to Bombay. They go everywhere. Why should we do that?"

The RBI did not immediately comment on Pai's remarks.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

The Central Bureau of Investigation (CBI) on Sunday night arrested former managing director (MD) and chief executive officer (CEO) of National Stock Exchange Chitra Ramkrishna in Delhi in the co-location case after her anticipatory bail plea was rejected by a Special CBI court on Saturday.

“She will be presented before a Delhi court on Monday morning,” a CBI official said under condition of anonymity.

CBI had arrested former group operating officer of NSE Anand Subramanian last week. CBI may also seek extension of Subramanian’s custody on Monday whose 10-day custody ended on Sunday.

The arrests were made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country’s largest stock exchange. The CBI had last month questioned Ramkrishna, Subramanian and Ravi Narain, also former CEO of the NSE.

A report of the Securities and Exchange Board of India last month showed that Ramkrishna took key decisions at the NSE from 2013 to 2016 on the advice of a “Himalayan yogi”, whom she had never met and who instructed her to appoint Subramanian group operating officer.

The four-year-old FIR of the CBI was primarily against Sanjay Gupta, MD of OPG Securities. It also named his brother-in-law Aman Kokrady and Ajay Shah, a data specialist and researcher employed by the NSE, along with unknown officials of the NSE and Sebi for their role in the controversy.

Between June 2010 and March 2014, the NSE had deployed the so-called tick-by-tick (TBT) architecture at its colo facility. TBT disseminated data feed sequentially, giving preference to trading members (TM) that had connected first to the colo server.

Taking advantage of the system, OPG Securities frequently obtained first access to the exchange system in connivance with certain NSE staffers. The issue was brought to light by a whistleblower, Ken Fong, who sent three complaint letters to Sebi in January, August, and October 2015, following which the regulator initiated multiple investigations and forensic audits into the matter.

In April 2019, Sebi directed the exchange to disgorge Rs 625 crore, along with an interest of 12 per cent annum since 2014, for lapses at its colo facility, which allowed unfair access to certain brokers. Sebi also told Narain and Ramkrishna, who were at the helm when the exchange servers were exploited, to disgorge a fourth of their salary for a specific period.

The market regulator directed OPG Securities, Gupta, and three others to disgorge Rs 15.6 crore, with an interest of 12 per cent per annum since April 2014. All of them have moved the Securities Appellate Tribunal against the order, where the matter is currently being heard.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

The rupee hit an all-time low of nearly 77 a dollar on Monday after crude oil made fresh surges on news reports that the US and its European allies were weighing a ban on Russian oil.  This was the fourth consecutive session when the currency weakened.

The home currency was trading at 76.96 a dollar, down 1.05 percent from its previous close, at the time of filing this story. It had opened at 76.96 a dollar.

Analysts said that the Russian invasion of Ukraine and likely lower exports of Russian crude oil will keep the oil prices elevated for a protracted period.  "We note increasing risks of global crude prices staying elevated in the next 6-9 months due to large imbalances in the global crude oil markets," an analyst said.

Brent soared to a near 14-year high of $140. Oil reached its highest since 2008 in US trading, and there is no sign of a cooling-off.

The latest setback came after US Secretary of State Antony Blinken told news channels, “We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil, while making sure that there is still an appropriate supply of oil on world markets.”

According to Kotak Institutional Equities report, an average crude price of $120a barrel will cost the Indian economy an incremental $70 billion, translating to 1.9 percent of the GDP, in FY2023 versus FY2022. Steep crude prices will pose stiff challenges in the form of higher CAD/GDP, higher inflation and lower growth.

The additional cost will be borne by the government in the form of lower excise revenues and higher MSPs, households in the form of higher retail prices of petroleum products and  companies; however, companies will pass on higher fuel costs to households eventually.

The delays in the potential return of Iranian crude to global markets, fresh supply disruptions in Libya and continued selling by foreign investors in Indian equities also dampened the sentiments among traders and also kept the domestic currency under pressure. Since October, Foreign investors have sold around Rs2 trillion.

On the domestic front, participants will be closely eyeing the state election results in five states of Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur on March 10. On the macroeconomic front, the IIP data is scheduled for March 11.

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