CMC to focus on expanding Education & Training segment in FY15

Subsidiary of Indian’s largest IT company, CMC Ltd is looking to expand its Education and Training business segment in FY15 by entering the vocational training market domestically as well as internationally. There are special initiatives going on in the company to focus and grow to make it a broader base of knowledge management says Sachin Karpe. CMC Limited is a leading systems engineering and integration company in India, offering application design, development, testing services and asset-based solutions in niche segments through turnkey projects for mission critical systems. CMC has also been expanding its service presence in international markets offering offshoring advantages and delivering value through service level-based and project scope-based deliveries. The company’s Education and Training segment is the smallest revenue generator of the four strategic business units it has. The company has  started a pilot project in vocational training in construction management and retail management segment in Hyderabad and Pune. The company will be launching pilots projects in this quarter in Delhi and Mumbai. 

The company has increased spending for this segment but not very significant as of now. As, it is a pilot project, it is too early to talk about total spending on this segment. CMC also plans to spend more on research and development in the current financial year and will keep a budget 15% higher from last year. As part of its vision to be among the top 20 global companies by 2020 through its CMC, Sachin Karpe says the company has laid a strategy to move towards its goal in the current year. The company intends to provide services to advanced markets and technology and solutions for the emerging markets. The emerging economies like Latin America, Eastern Europe, and Africa do not have systems integration at all and so there is a great business opportunity there to tap these markets to create solutions from ground-up.

For the advanced countries, CMC has the skill and domain knowledge where it can position for outsourcing or automation services or SMAC integration. The company’s Education and Training segment is the smallest revenue generator of the four strategic business units it has. In the quarter ended March, this segment reported consolidated revenues worth Rs 13.77 crore compared with Rs 77.44 crore from IT enabled services and the highest of Rs 398 crore from the systems integration segment. The customer services segment churned Rs 119.82 crore in the period under review says Sachin Karpe.