Search for Satyam and get a job!
------------------------------------------------------------
BANGALORE, INDIA: The share prices of Satyam may be plunging southwards, but the graph of the number of people searching for keywords related to the fiasco is a different story altogether.
CyberMedia News took a walk around cyberia to see what results crop up when you type Satyam as a keyword across different search engines. The results are quite interesting:
Google sensibly throws up news results for Satyam rotating links from various Indian and international news agencies and publications, followed by link to the Satyam website.
The fun begins after this! The third link is called Satyam's talent search; a link to Satyam's job openings page, which specifies how to 'transform beyond your dreams' and what qualities Satyam expects out of you for each job opening.
Interestingly, we didn't find any mention of balance sheet manipulation expertise!
The page also lists out 'Seven habits to think like a CEO', which has points like 'process centric approaches' and 'develop and sustain long term relationships with stakeholders'.
Apparently, 'it's not about position but all about action'. 'It's not about taking responsibility in parts but owning end-to-end'. AHEM!
Yahoo, on the other hand, gives an all-inclusive page that has news, links to the site, a section on share prices, where most numbers were red in colour, accompanied by an arrow pointing downwards, links to blog sites, and (if you are sick and tired of the episode) a link to Satyam Multiplexes for you to book a ticket for a movie!
If you are a Tamil movie buff, your search also yields results that point you to the IndiaGlitz.com site which gives you the synopsis of a actor named Vishal-starrer 'Satyam'. Phew, do we need more drama?
Rediff throws up interesting results. Besides the obvious, it also has a link on more than one place, to the blog page of a certain 'satyamshivamsundaram', besides links to Satyam Computers' placement papers, and suggestions on how you should ideally be searching for Satyam Cinema or Satyam theatre.
Fed up, you type www.ramalingaraju.com, looking for the Satyam chairman's bandwagon of followers. And alas, you find the site offline.
Technology is funny sometimes, and in occasions like these, one needs to enjoy these lighter moments to have hope on Indian outsourcing, deviate your mind away from the recession, and just have a good laugh.
While at it, you might want to type in Nifty in the search tab of Google to look at the share market index. Don't tell us we didn't warn you of porn content!
------------------------------------------------------------
Copyright (c) 2007 CyberMedia India Online Ltd . All rights reserved. Additional reproduction in whole or in part or in any form or medium without express written permission of CIOL is prohibited.
Send your questions to webmasterciol@cybermedia.co.in
Friday, January 9, 2009
Unedited open letter from Satyam interim CEO Ram Mynampati
Unedited open letter from Satyam interim CEO Ram Mynampati
7 Jan 2009, 1535 hrs IST
From: Ram Mynampati
Sent: Wednesday, January 07, 2009 2:05 PM
To: SatyamAssociates (Global)
Subject: Open communication : Today's developments
Importance: High
Dear colleagues
I write this mail to update you on some critical Board and Leadership level changes in our company, effective immediately. A series of extremely unfortunate events led to this, which I am sure you have seen covered in the media over the past few hours.
A SWAT team consisting of senior leaders has been formed. Many of them are Satyam veterans with a minimum of ten years experience in our company and more than twenty years in the industry. I have been requested to play the role of an Interim CEO and this team will support me, as we steer Satyam through this challenging phase. These are the leaders on the ground and have always had the final call on most customer and associate related matters in the company, so far. This team has committed to work together, to make it happen. The SWAT team represents all Customer Facing units, key Horizontal Competency Units and critical Support Units.
Over the past twenty one years, with your passion and commitment we have built significant customer assets, formidable service offerings, excellent delivery processes and scalable support systems. Satyam has been consistently acknowledged for our leadership bandwidth and has a demonstrated reputation for collaborative functioning. Our renowned Full Life Cycle (FLC) model encouraged 'Distributed and Empowered' leadership and prepared us for all situations. This is the time when we have to apply it in real life. What we have been trained for, we will now put to work. Let us continue to handle our respective areas with total autonomy, freedom and control. This is as good a time, as any, to remind ourselves that we have been acknowledged as being amongst the top three Best Employers in India by Hewitt and Mercer in independent surveys in 2007 and American Society of Training & Development (ASTD) named us as the best globally, for our Learning practices - the first company outside USA to be ever awarded this honor. Satyam continues to have everything that is fundamentally required for its success - a strong customer base and a committed universe of approx 53,000 associates.
What we are confronted with is the challenge of continuing our business operations, seamlessly. We will need your involvement and ideas to make it happen. This might involve even more effort at every level, in the near term. This is the time to prove to the world that we are united and will succeed in overcoming the challenges.
This quarter will be tumultuous for us. Rumors will abound and it would be fair to assume that competition will try and leverage it to their advantage. As a proactive measure, we have formed fully empowered Cross Functional Teams, headed by seasoned leaders in the respective areas, to address pan-organizational issues like Delivery Excellence, Customer & Associate Retention, Pipeline Management, Cost Controls, Collections etc. You have helped to build Satyam to be what it is today - and we believe that this cannot be allowed to fail, at any cost. I am confident that I can count on your continued support as I commit to our customers that we will ensure deliverables and commitments are serviced.
On behalf of our new leadership team, I apologize to you for the uncertainty and inconvenience that this incident has caused to you and your families. I assure you that we will emerge stronger, because of this. Increased focus on transparency at all levels, integrity and ethical functioning will be ensured. I want you to stand confidently in front of your families and friends and say that we will now be a better company and that we shall soon be a successful case study of how organizations have turned over a new leaf.
We will be conducting "U Speak" (our Meet-the-Leadership sessions) in each city in India starting next week and will have numerous Webinars to address associates in various countries. We will be meeting many of our customers in person over the next two weeks and will meet those of you onsite, at that time. In these sessions, we will explain to you what happened and articulate the actions that are being taken to retain your confidence in our company.
Let us fight this battle together. I am confident that we will emerge stronger, TOGETHER.
Ram Mynampati
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7 Jan 2009, 1535 hrs IST
From: Ram Mynampati
Sent: Wednesday, January 07, 2009 2:05 PM
To: SatyamAssociates (Global)
Subject: Open communication : Today's developments
Importance: High
Dear colleagues
I write this mail to update you on some critical Board and Leadership level changes in our company, effective immediately. A series of extremely unfortunate events led to this, which I am sure you have seen covered in the media over the past few hours.
A SWAT team consisting of senior leaders has been formed. Many of them are Satyam veterans with a minimum of ten years experience in our company and more than twenty years in the industry. I have been requested to play the role of an Interim CEO and this team will support me, as we steer Satyam through this challenging phase. These are the leaders on the ground and have always had the final call on most customer and associate related matters in the company, so far. This team has committed to work together, to make it happen. The SWAT team represents all Customer Facing units, key Horizontal Competency Units and critical Support Units.
Over the past twenty one years, with your passion and commitment we have built significant customer assets, formidable service offerings, excellent delivery processes and scalable support systems. Satyam has been consistently acknowledged for our leadership bandwidth and has a demonstrated reputation for collaborative functioning. Our renowned Full Life Cycle (FLC) model encouraged 'Distributed and Empowered' leadership and prepared us for all situations. This is the time when we have to apply it in real life. What we have been trained for, we will now put to work. Let us continue to handle our respective areas with total autonomy, freedom and control. This is as good a time, as any, to remind ourselves that we have been acknowledged as being amongst the top three Best Employers in India by Hewitt and Mercer in independent surveys in 2007 and American Society of Training & Development (ASTD) named us as the best globally, for our Learning practices - the first company outside USA to be ever awarded this honor. Satyam continues to have everything that is fundamentally required for its success - a strong customer base and a committed universe of approx 53,000 associates.
What we are confronted with is the challenge of continuing our business operations, seamlessly. We will need your involvement and ideas to make it happen. This might involve even more effort at every level, in the near term. This is the time to prove to the world that we are united and will succeed in overcoming the challenges.
This quarter will be tumultuous for us. Rumors will abound and it would be fair to assume that competition will try and leverage it to their advantage. As a proactive measure, we have formed fully empowered Cross Functional Teams, headed by seasoned leaders in the respective areas, to address pan-organizational issues like Delivery Excellence, Customer & Associate Retention, Pipeline Management, Cost Controls, Collections etc. You have helped to build Satyam to be what it is today - and we believe that this cannot be allowed to fail, at any cost. I am confident that I can count on your continued support as I commit to our customers that we will ensure deliverables and commitments are serviced.
On behalf of our new leadership team, I apologize to you for the uncertainty and inconvenience that this incident has caused to you and your families. I assure you that we will emerge stronger, because of this. Increased focus on transparency at all levels, integrity and ethical functioning will be ensured. I want you to stand confidently in front of your families and friends and say that we will now be a better company and that we shall soon be a successful case study of how organizations have turned over a new leaf.
We will be conducting "U Speak" (our Meet-the-Leadership sessions) in each city in India starting next week and will have numerous Webinars to address associates in various countries. We will be meeting many of our customers in person over the next two weeks and will meet those of you onsite, at that time. In these sessions, we will explain to you what happened and articulate the actions that are being taken to retain your confidence in our company.
Let us fight this battle together. I am confident that we will emerge stronger, TOGETHER.
Ram Mynampati
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Satyam: B Ramalinga Raju's resignation letter
From Times Online
January 7, 2009
Satyam: B Ramalinga Raju's resignation letter
Times Online
"It is with deep regret and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:
1. The Balance Sheet carries as of September 30, 2008, a) Inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books); b) An accrued interest of Rs 376 crore, which is non-existent c) An understated liability of Rs 1,230 crore on account of funds arranged by me; d) An overstated debtors' position of Rs 490 crore (as against Rs 2,651 reflected in the books);
2. For the September quarter(Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore(24 per cent of revenue) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenues). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.
The gap in the balance sheet has arisen purely on account of inflated profits over several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance).
What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years.
It has attained unmanageable proportions as the size of the company operations grew significantly (annualised revenue run rate of Rs 11,276 crore in the September quarter, 2008, and official reserves of Rs 8,392 crore).
The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify a higher level of operations thereby significantly increasing the costs.
Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was that poor performance would result in the takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.
The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas' investors were convinced that this is a good divestment opportunity and a strategic fit.
One Satyam's problem was solved, it was hoped that Maytas' payments can be delayed. But that was not to be. What followed in the last several days is common knowledge.
I would like the board to know:
1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years - excepting for a small proportion declared and sold for philanthropic purposes.
2. That in the last two years a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (statement enclosed only to the members of the board).
Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged shares by the lenders on account of margin triggers.
3. That neither me nor the managing director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results.
4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T R Anand, Keshab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murli V, Shriram Papani, Kiran Kavale, Joe Lagioia, Ravindra Penumetsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts.
None of my or managing directors' immediate or extended family members has any idea about these issues.
Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:
1. A task force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt.
This consists of some of the most accomplished leaders of Satyam: Subu D, T.R. Anand, Keshab Panda and Virendra Agarwal, representing business functions, and A S Murthy, Hari T and Murali V representing support functions.
I suggest that Ram Mynampati be made the chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim chief executive reporting to the board.
2. Merrill Lynch can be entrusted with the task of quickly exploring some merger opportunities.
3. You may have a 'restatement of accounts' prepared by the auditors in light of the facts that I have placed before you.
I have promoted and have been associated with Satyam for well over 20 years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries.
Satyam has established an excellent leadership and competency base at all levels.
I sincerely apologise to all Satyamites and stakeholders, who have made Satyam a special organisation, for the current situation. I am confident they will stand by the company in this hour of crisis.
In light of the above, I fervently appeal to the board to hold together to take some important steps. TR Prasad is well placed to mobilise a support from the government at this crucial time.
With the hope that members of the Task Force and the financial advisor, Merrill Lynch (now Bank of America), will stand by the company at this crucial hour, I am marking copies of the statement to them as well.
Under the circumstances, I am tendering the resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible.
I am now prepared to subject myself to the laws of the land and face the consequences thereof."
B. Ramalinga Raju
January 7, 2009
Satyam: B Ramalinga Raju's resignation letter
Times Online
"It is with deep regret and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:
1. The Balance Sheet carries as of September 30, 2008, a) Inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books); b) An accrued interest of Rs 376 crore, which is non-existent c) An understated liability of Rs 1,230 crore on account of funds arranged by me; d) An overstated debtors' position of Rs 490 crore (as against Rs 2,651 reflected in the books);
2. For the September quarter(Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore(24 per cent of revenue) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenues). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.
The gap in the balance sheet has arisen purely on account of inflated profits over several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance).
What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years.
It has attained unmanageable proportions as the size of the company operations grew significantly (annualised revenue run rate of Rs 11,276 crore in the September quarter, 2008, and official reserves of Rs 8,392 crore).
The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify a higher level of operations thereby significantly increasing the costs.
Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was that poor performance would result in the takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.
The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas' investors were convinced that this is a good divestment opportunity and a strategic fit.
One Satyam's problem was solved, it was hoped that Maytas' payments can be delayed. But that was not to be. What followed in the last several days is common knowledge.
I would like the board to know:
1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years - excepting for a small proportion declared and sold for philanthropic purposes.
2. That in the last two years a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (statement enclosed only to the members of the board).
Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged shares by the lenders on account of margin triggers.
3. That neither me nor the managing director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results.
4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T R Anand, Keshab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murli V, Shriram Papani, Kiran Kavale, Joe Lagioia, Ravindra Penumetsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts.
None of my or managing directors' immediate or extended family members has any idea about these issues.
Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:
1. A task force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt.
This consists of some of the most accomplished leaders of Satyam: Subu D, T.R. Anand, Keshab Panda and Virendra Agarwal, representing business functions, and A S Murthy, Hari T and Murali V representing support functions.
I suggest that Ram Mynampati be made the chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim chief executive reporting to the board.
2. Merrill Lynch can be entrusted with the task of quickly exploring some merger opportunities.
3. You may have a 'restatement of accounts' prepared by the auditors in light of the facts that I have placed before you.
I have promoted and have been associated with Satyam for well over 20 years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries.
Satyam has established an excellent leadership and competency base at all levels.
I sincerely apologise to all Satyamites and stakeholders, who have made Satyam a special organisation, for the current situation. I am confident they will stand by the company in this hour of crisis.
In light of the above, I fervently appeal to the board to hold together to take some important steps. TR Prasad is well placed to mobilise a support from the government at this crucial time.
With the hope that members of the Task Force and the financial advisor, Merrill Lynch (now Bank of America), will stand by the company at this crucial hour, I am marking copies of the statement to them as well.
Under the circumstances, I am tendering the resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible.
I am now prepared to subject myself to the laws of the land and face the consequences thereof."
B. Ramalinga Raju
Jan 6 2009 --- Satyam to log in highest Dec growth among peers: Analysts
Satyam to log in highest Dec growth among peers: Analysts
6 Jan 2009, 1144 hrs IST, Santanu Mishra & N Shivapriya, ET Bureau
MUMBAI: Here’s more to Satyam Computer Services’ appeal as a takeover target: it may be the best performer among India’s Top 5 IT
firms. According to consensus estimates of six brokerages, Satyam is expected to report the highest growth in rupee revenues for the December quarter among its peer group and its dollar revenues are expected to be only a tad below its guidance.
The embattles software major is likely to announce its quarterly results on January 16 or 20. A few brokerage firms like CLSA expect Satyam to meet its dollar guidance of $634-652 .2 million for the third quarter with revenues of $640 million. While Satyam is expected to maintain its full fiscal revenue guidance, Infosys Technologies is expected to scale down guidance for FY09, according to CLSA.
According to IIFL’s Sandeep Muthangi , Satyam, Infosys and Wipro are expected to benefit because of their higher exposure to the dollar, as compared to Tata Consultancy Services (TCS) and HCL Technologies. The rupee’s fall against the dollar will have a positive impact , while the pound’s fall against the rupee will impact companies like TCS, which have a higher pound exposure.
The quarterly numbers, however, will make little difference to Satyam’s stock price beacuse of the loss of investors confidence in the management.
Also Read
→ Satyam attracts suitors, but appearances may be deceptive
→ Tech Mahindra offers Satyam cashless union
→ Satyam staff may buy shares
→ Banks toil hard to find buyer for Satyam
While the December quarter is typically weaker because of the more numbers of holidays, the slowdown this year has caused forced shutdowns by clients. According to Mr Muthangi, in many cases there have been demands for nonbilling for the last ten days of December.
For instance, Wipro had asked all its offshore employees working for Cisco to apply for leave for five business days. “Our employees’ leave/vacation is aligned around their respective customers’ leave/vacation window,” Wipro’s executive vice president, HR, Pratik Kumar told ET in a written response.
“Clients are reluctant to commit on 2009 budgets and discretionary projects have been put on hold... With volume growth slowing down and pricing cut imminent in 2009, IT companies are focused on controlling cost to maintain margins,” said Spark Capital analyst Santhanakrishnan.
About Us | Advertise with Us | Careers @ TIL | Terms of Use | Privacy Policy | Feedback | Sitemap
Copyright © 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
This site is best viewed with Internet Explorer 6.0 or higher; Firefox 2.0 or higher at a minimum screen resolution of 1024x768
6 Jan 2009, 1144 hrs IST, Santanu Mishra & N Shivapriya, ET Bureau
MUMBAI: Here’s more to Satyam Computer Services’ appeal as a takeover target: it may be the best performer among India’s Top 5 IT
firms. According to consensus estimates of six brokerages, Satyam is expected to report the highest growth in rupee revenues for the December quarter among its peer group and its dollar revenues are expected to be only a tad below its guidance.
The embattles software major is likely to announce its quarterly results on January 16 or 20. A few brokerage firms like CLSA expect Satyam to meet its dollar guidance of $634-652 .2 million for the third quarter with revenues of $640 million. While Satyam is expected to maintain its full fiscal revenue guidance, Infosys Technologies is expected to scale down guidance for FY09, according to CLSA.
According to IIFL’s Sandeep Muthangi , Satyam, Infosys and Wipro are expected to benefit because of their higher exposure to the dollar, as compared to Tata Consultancy Services (TCS) and HCL Technologies. The rupee’s fall against the dollar will have a positive impact , while the pound’s fall against the rupee will impact companies like TCS, which have a higher pound exposure.
The quarterly numbers, however, will make little difference to Satyam’s stock price beacuse of the loss of investors confidence in the management.
Also Read
→ Satyam attracts suitors, but appearances may be deceptive
→ Tech Mahindra offers Satyam cashless union
→ Satyam staff may buy shares
→ Banks toil hard to find buyer for Satyam
While the December quarter is typically weaker because of the more numbers of holidays, the slowdown this year has caused forced shutdowns by clients. According to Mr Muthangi, in many cases there have been demands for nonbilling for the last ten days of December.
For instance, Wipro had asked all its offshore employees working for Cisco to apply for leave for five business days. “Our employees’ leave/vacation is aligned around their respective customers’ leave/vacation window,” Wipro’s executive vice president, HR, Pratik Kumar told ET in a written response.
“Clients are reluctant to commit on 2009 budgets and discretionary projects have been put on hold... With volume growth slowing down and pricing cut imminent in 2009, IT companies are focused on controlling cost to maintain margins,” said Spark Capital analyst Santhanakrishnan.
About Us | Advertise with Us | Careers @ TIL | Terms of Use | Privacy Policy | Feedback | Sitemap
Copyright © 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
This site is best viewed with Internet Explorer 6.0 or higher; Firefox 2.0 or higher at a minimum screen resolution of 1024x768
Satyam's Raju isn't inspired by Premji
Printed from
Satyam's Raju isn't inspired by Premji
25 Jun 2007, 0016 hrs IST, J Padmapriya, TNN
HYDERABAD: It is not always that you follow your father's footsteps. So what if the father's name is B Ramalinga Raju, founder and chairman of
one of India's pearls, Satyam Computers, which is projected to touch $2-billion revenue in 2007-08.
With Wipro founder Azim Premji’s Rishad Premji joining Wipro early this month, ET questioned Ramalinga Raju about the possibility of inducting his two sons — Teja B Raju and Rama B Raju — into the company. "Even if I ask them, they will not come. They are running more exciting businesses. They're definitely not joining Satyam," said the doting 51-year-old father.
The obvious question left unanswered is who will succeed Ramalinga Raju. "According to Satyam's succession planning formula, there are at least three alternatives to any given leadership position and these resources are systematically nurtured," Mr Raju said. When asked if the same method would be followed while choosing the chairman's position, he said "very much so."
Ramalinga Raju and the promoter group hold 14.02% in the company, according to the BSE data on March 2006.
Perhaps the reasons are not far to seek. Both his sons are well-entrenched in running Maytas Infrastructure and Maytas Properties, the family's old construction and property businesses. Maytas is actually Satyam spelt backward. The public-listed Satyam has no link with the former except that the promoters are common.
Teja Raju, who joined Maytas board in 2001, holds an MS in engineering from Carnegie Mellon University and was among the young entrepreneurs to meet US President George Bush, when he was on a visit to Hyderabad last year. Rama B Raju, who joined the Maytas board in 2005, holds an MBA degree from the Ross School, University of Michigan.
Succession planning is very strategic given that organisations of scale are created to last and outlive generations. Internally, the succession plan for Ramalinga Raju is something that is very seriously discussed. "We discuss it all the time. And, these alternatives could be outside the Satyam's promoter group," said an insider. Satyam has identified about 100 mission critical positions for which it is nurturing future leaders. "We are in the business of growing leaders," Mr Raju said.
For Ramalinga Raju and family, who fully own Maytas, the current construction and infrastructure boom is leading to a fast clip growth of the old business. In fact, Maytas has filed draft red herring prospectus to raise funds through an IPO by diluting 15.04% stake. The Satyam founder is understood to instill IT-like business practices in Maytas.
For instance, Maytas is focused on being process-driven in terms of delivery and execution. It has formed project-specific technical alliances with larger infrastructure players. It is planning to recruit from campuses to create a cadre of civil engineers to check attrition. It has created strategic business units along the lines of verticals headed by professionals.
The new-age business practices may be infusing dynamism in the family's old businesses, Satyam too is focused on capitalising on youth with Mr Raju passionate about the organisation's new leadership strategy.
About Us | Advertise with Us | Careers @ TIL | Terms of Use | Privacy Policy | Feedback | Sitemap
Copyright © 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
This site is best viewed with Internet Explorer 6.0 or higher; Firefox 2.0 or higher at a minimum screen resolution of 1024x768
Satyam's Raju isn't inspired by Premji
25 Jun 2007, 0016 hrs IST, J Padmapriya, TNN
HYDERABAD: It is not always that you follow your father's footsteps. So what if the father's name is B Ramalinga Raju, founder and chairman of
one of India's pearls, Satyam Computers, which is projected to touch $2-billion revenue in 2007-08.
With Wipro founder Azim Premji’s Rishad Premji joining Wipro early this month, ET questioned Ramalinga Raju about the possibility of inducting his two sons — Teja B Raju and Rama B Raju — into the company. "Even if I ask them, they will not come. They are running more exciting businesses. They're definitely not joining Satyam," said the doting 51-year-old father.
The obvious question left unanswered is who will succeed Ramalinga Raju. "According to Satyam's succession planning formula, there are at least three alternatives to any given leadership position and these resources are systematically nurtured," Mr Raju said. When asked if the same method would be followed while choosing the chairman's position, he said "very much so."
Ramalinga Raju and the promoter group hold 14.02% in the company, according to the BSE data on March 2006.
Perhaps the reasons are not far to seek. Both his sons are well-entrenched in running Maytas Infrastructure and Maytas Properties, the family's old construction and property businesses. Maytas is actually Satyam spelt backward. The public-listed Satyam has no link with the former except that the promoters are common.
Teja Raju, who joined Maytas board in 2001, holds an MS in engineering from Carnegie Mellon University and was among the young entrepreneurs to meet US President George Bush, when he was on a visit to Hyderabad last year. Rama B Raju, who joined the Maytas board in 2005, holds an MBA degree from the Ross School, University of Michigan.
Succession planning is very strategic given that organisations of scale are created to last and outlive generations. Internally, the succession plan for Ramalinga Raju is something that is very seriously discussed. "We discuss it all the time. And, these alternatives could be outside the Satyam's promoter group," said an insider. Satyam has identified about 100 mission critical positions for which it is nurturing future leaders. "We are in the business of growing leaders," Mr Raju said.
For Ramalinga Raju and family, who fully own Maytas, the current construction and infrastructure boom is leading to a fast clip growth of the old business. In fact, Maytas has filed draft red herring prospectus to raise funds through an IPO by diluting 15.04% stake. The Satyam founder is understood to instill IT-like business practices in Maytas.
For instance, Maytas is focused on being process-driven in terms of delivery and execution. It has formed project-specific technical alliances with larger infrastructure players. It is planning to recruit from campuses to create a cadre of civil engineers to check attrition. It has created strategic business units along the lines of verticals headed by professionals.
The new-age business practices may be infusing dynamism in the family's old businesses, Satyam too is focused on capitalising on youth with Mr Raju passionate about the organisation's new leadership strategy.
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Satyam
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An interview with Satyam founder Ramalinga Raju
12 Jul 2008, 0017 hrs IST, Hema Ramakrishnan & Sreekala G, ET Bureau
Satyam founder Ramalinga Raju
Satyam founder Ramalinga Raju
BANGALORE: A ‘naïve decision’ is how Ramalinga Raju, chairman and founder of Satyam Computer Services, describes his plunge into the information technology sector.
“We had not looked at the commercial value it would bring to our family. It was driven more by a certain passion that we (me, my brother and a cousin) had for knowledge and technology. We were fascinated by things that were beginning to happen in the IT sector.” What Raju calls naiveté — in effect a pioneering spirit motivated by passion and not profit — was backed by the hard edge of a keen intellect.
As he stands in his study, the creator of what is now a $2 billion company with over 53,000 people and operations in more than 60 countries, Satyam is in Orbit Six of its operations: it has reinvented itself six times and is now focusing on innovation and leadership. The study in his sprawling home in Hyderabad’s upmarket Jubilee Hills is stacked with books on science, history and management.
There is a separate entrance to this room that has a splendid sit-out overlooking the lush green lawns.
“I have enjoyed reading non-fiction writings of popular science-fiction writer Isaac Asimov. He has a flair for demystifying science. As a personality, I have a great admiration for Albert Einstein. I graduated in commerce, but was fascinated by science,” he says with a smile.
As we settle down, he recounts how it was when the company was founded and during its early days. “To start with, Satyam Computers decided to stay away from the domestic IT services market and focus only on exports. Some other companies did just the reverse. We also chose to invest in soft assets — people, marketing and communication — while many others invested in physical assets.”
Raju’s strategy paid off and the big break came in 1991. Satyam Computers became the first Indian company to provide offshore services to its client, John Deere, through a satellite connection. The Illinois headquartered company was sceptical about outsourcing, but Raju convinced them.
Satyam hired a building on the outskirts of Moline (Illinois) and set up a connection. Little India, as it was called, worked in sync with the Indian time zone. But none of the engineers were allowed to trudge into the client’s premises till the project was done.
In the mid-90s, Raju saw a big opportunity in providing information through IT networks. Satyam Infoway (Sify) was born in 1995, started as a wholly owned subsidiary of Satyam Computers. Raju had a knack for picking the right people for ventures. He roped in T Hanuman Chowdary, former chairman of state-owned VSNL, when Satyam Infoway launched internet services.
Six years later though the company sold its entire stake in Sify to a strategic investor. “Our exit from Sify had nothing to with the acquisition of IndiaWorld Communications. It had more to do with the dotcom bubble that had burst. Those were tough times for all companies globally and in India. We were used to triple-digit growth for so many years that a lower double-digit growth came as a shock.”
Shortly after the Sify saga, he and his wife packed their bags and headed to New Jersey. “My wife used to joke about our staying in Hyderabad when Satyam’s business was global. She was surprised by my decision to move base. But my senior team members and I were clear that we had to get closer to our global customers.” They were back in Hyderabad within a year, after the September 11 tragedy in the US in 2001. Raju had just then lost his father, a wealthy grape farmer. As a lasting tribute to his memory, he set up the Byrraju Foundation to transform the lives of the rural poor.
An adept man manager, he saw merit in team-building. “Our business model considers every associate as a leader. It encourages each one of them to take responsibilities for the functions they perform. We call it placing leaders at the centre of the universe. This has paved the way for Satyam being recognised now as the best training and development organization in the world,” says the management graduate from Ohio University.
He describes as carefree the time when he was studying to graduate in India. All that changed after his stint in the US. He took an impulsive decision to return to India when his grandfather passed away in the late 1970s. Raju was then pursuing his second degree, a Masters in Economics. But there was no looking back. He took care of the family business in construction and textiles before switching to IT. Both his US-educated sons are now well-entrenched in running Maytas Infrastructure and Maytas Properties, the family’s old construction and property businesses.
Over the years, Satyam has de-risked its business a great deal to lower its dependence on the North American markets. “We have enhanced operations in Europe and Asia-Pacific regions. Over half a dozen verticals contribute to our revenues now compared to three or four verticals in 2000. The contribution of our top 10 clients too has dropped. We have strengthened our competency base in enterprise business solutions and consulting. In a metaphorical sense, we have moved away from being suppliers of parts to suppliers of cars.”
Is NYSE listed Satyam a candidate for a takeover? Raju rules it out, saying the services industry is essentially people-centric and is governed by norms that are different from other sectors. “We would look at more acquisitions for furthering our business and will remain a focused organisation. As a family, me and my brother are focused on IT, BPO & related services.” He places trust in the company's legal support systems to tackle challenges such as the litigation with an online and mobile payments firm in a patent infringement case.
Raju is not worried just yet about the prospect of a slowdown in the global economy and its impact on the services sector. “The size of the pie in the area of services is growing dramatically and many of these services can be delivered virtually. I believe we have barely scratched the surface.”
A private person, Raju confesses that his social circle has shrunk a lot since his days as a student. He takes a break between his hectic schedule to catch up on reading and meditation. He enjoys Thai food and also marvels while watching his little granddaughter grow. “I wish our learning curve could be as steep as hers!”
Is there bonhomie among his peers in the IT industry? “Narayana Murthy (of Infosys) and (Wipro’s) Azim Premji are like my elder brothers and I have great respect for them. Azim has dropped in at home a couple of times,” he says.
We glance at the best-seller on Microsoft Corporation, prominently displayed in his study. Bill Gates, the co-founder of Microsoft Corporation, hung up his boots at 52. Are there lessons to be drawn from Bill Gates or Murthy, who stepped aside as Chief Executive Officer at age 55?
The country’s fourth-largest software exporter has a succession planning formula where every leader is encouraged to identify three or four potential leaders as replacement. The same method would be followed for the chairman’s position as well. “But if you are referring to my retirement, I am not contemplating that at this juncture,” says 54-year-old Raju before he signs off for another busy day.
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Copyright © 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
This site is best viewed with Internet Explorer 6.0 or higher; Firefox 2.0 or higher at a minimum screen resolution of 1024x768
An interview with Satyam founder Ramalinga Raju
12 Jul 2008, 0017 hrs IST, Hema Ramakrishnan & Sreekala G, ET Bureau
Satyam founder Ramalinga Raju
Satyam founder Ramalinga Raju
BANGALORE: A ‘naïve decision’ is how Ramalinga Raju, chairman and founder of Satyam Computer Services, describes his plunge into the information technology sector.
“We had not looked at the commercial value it would bring to our family. It was driven more by a certain passion that we (me, my brother and a cousin) had for knowledge and technology. We were fascinated by things that were beginning to happen in the IT sector.” What Raju calls naiveté — in effect a pioneering spirit motivated by passion and not profit — was backed by the hard edge of a keen intellect.
As he stands in his study, the creator of what is now a $2 billion company with over 53,000 people and operations in more than 60 countries, Satyam is in Orbit Six of its operations: it has reinvented itself six times and is now focusing on innovation and leadership. The study in his sprawling home in Hyderabad’s upmarket Jubilee Hills is stacked with books on science, history and management.
There is a separate entrance to this room that has a splendid sit-out overlooking the lush green lawns.
“I have enjoyed reading non-fiction writings of popular science-fiction writer Isaac Asimov. He has a flair for demystifying science. As a personality, I have a great admiration for Albert Einstein. I graduated in commerce, but was fascinated by science,” he says with a smile.
As we settle down, he recounts how it was when the company was founded and during its early days. “To start with, Satyam Computers decided to stay away from the domestic IT services market and focus only on exports. Some other companies did just the reverse. We also chose to invest in soft assets — people, marketing and communication — while many others invested in physical assets.”
Raju’s strategy paid off and the big break came in 1991. Satyam Computers became the first Indian company to provide offshore services to its client, John Deere, through a satellite connection. The Illinois headquartered company was sceptical about outsourcing, but Raju convinced them.
Satyam hired a building on the outskirts of Moline (Illinois) and set up a connection. Little India, as it was called, worked in sync with the Indian time zone. But none of the engineers were allowed to trudge into the client’s premises till the project was done.
In the mid-90s, Raju saw a big opportunity in providing information through IT networks. Satyam Infoway (Sify) was born in 1995, started as a wholly owned subsidiary of Satyam Computers. Raju had a knack for picking the right people for ventures. He roped in T Hanuman Chowdary, former chairman of state-owned VSNL, when Satyam Infoway launched internet services.
Six years later though the company sold its entire stake in Sify to a strategic investor. “Our exit from Sify had nothing to with the acquisition of IndiaWorld Communications. It had more to do with the dotcom bubble that had burst. Those were tough times for all companies globally and in India. We were used to triple-digit growth for so many years that a lower double-digit growth came as a shock.”
Shortly after the Sify saga, he and his wife packed their bags and headed to New Jersey. “My wife used to joke about our staying in Hyderabad when Satyam’s business was global. She was surprised by my decision to move base. But my senior team members and I were clear that we had to get closer to our global customers.” They were back in Hyderabad within a year, after the September 11 tragedy in the US in 2001. Raju had just then lost his father, a wealthy grape farmer. As a lasting tribute to his memory, he set up the Byrraju Foundation to transform the lives of the rural poor.
An adept man manager, he saw merit in team-building. “Our business model considers every associate as a leader. It encourages each one of them to take responsibilities for the functions they perform. We call it placing leaders at the centre of the universe. This has paved the way for Satyam being recognised now as the best training and development organization in the world,” says the management graduate from Ohio University.
He describes as carefree the time when he was studying to graduate in India. All that changed after his stint in the US. He took an impulsive decision to return to India when his grandfather passed away in the late 1970s. Raju was then pursuing his second degree, a Masters in Economics. But there was no looking back. He took care of the family business in construction and textiles before switching to IT. Both his US-educated sons are now well-entrenched in running Maytas Infrastructure and Maytas Properties, the family’s old construction and property businesses.
Over the years, Satyam has de-risked its business a great deal to lower its dependence on the North American markets. “We have enhanced operations in Europe and Asia-Pacific regions. Over half a dozen verticals contribute to our revenues now compared to three or four verticals in 2000. The contribution of our top 10 clients too has dropped. We have strengthened our competency base in enterprise business solutions and consulting. In a metaphorical sense, we have moved away from being suppliers of parts to suppliers of cars.”
Is NYSE listed Satyam a candidate for a takeover? Raju rules it out, saying the services industry is essentially people-centric and is governed by norms that are different from other sectors. “We would look at more acquisitions for furthering our business and will remain a focused organisation. As a family, me and my brother are focused on IT, BPO & related services.” He places trust in the company's legal support systems to tackle challenges such as the litigation with an online and mobile payments firm in a patent infringement case.
Raju is not worried just yet about the prospect of a slowdown in the global economy and its impact on the services sector. “The size of the pie in the area of services is growing dramatically and many of these services can be delivered virtually. I believe we have barely scratched the surface.”
A private person, Raju confesses that his social circle has shrunk a lot since his days as a student. He takes a break between his hectic schedule to catch up on reading and meditation. He enjoys Thai food and also marvels while watching his little granddaughter grow. “I wish our learning curve could be as steep as hers!”
Is there bonhomie among his peers in the IT industry? “Narayana Murthy (of Infosys) and (Wipro’s) Azim Premji are like my elder brothers and I have great respect for them. Azim has dropped in at home a couple of times,” he says.
We glance at the best-seller on Microsoft Corporation, prominently displayed in his study. Bill Gates, the co-founder of Microsoft Corporation, hung up his boots at 52. Are there lessons to be drawn from Bill Gates or Murthy, who stepped aside as Chief Executive Officer at age 55?
The country’s fourth-largest software exporter has a succession planning formula where every leader is encouraged to identify three or four potential leaders as replacement. The same method would be followed for the chairman’s position as well. “But if you are referring to my retirement, I am not contemplating that at this juncture,” says 54-year-old Raju before he signs off for another busy day.
About Us | Advertise with Us | Careers @ TIL | Terms of Use | Privacy Policy | Feedback | Sitemap
Copyright © 2009 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
This site is best viewed with Internet Explorer 6.0 or higher; Firefox 2.0 or higher at a minimum screen resolution of 1024x768
Enron men in Satyam Group
Source: The Economic Times (New Delhi, India) (via Knight Ridder/Tribune Business News)
Publication Date: 18-JUL-05
Enron men shed their garbs, but power ahead.
Byline: Anto T Joseph
Jul. 18--MUMBAI, India -- Enron may be a bad word in the US, but it's definitely not so in India. At least not for the old guard at Enron India and its subsidiary, the ill-fated Dabhol Power Company (DPC). They still have those memories about India's largest power plant that was set up in the picturesque Dabhol village in Ratnagiri district, which entered the history books for creating a long and complex legal battle between the promoters and the lenders -- foreign and Indian.
Most of the former top officials of Enron India and DPC have moved to other Indian power companies, while a few moved back to their home country, the US. Despite the nostalgia, many do not mention the word 'Enron' in their CVs.
"Give us credit for what we have created. The 2,184-mega watt power project, when India was on the verge of a power crisis, a regassification plant and an LNG terminal at $3bn was indeed a national asset. It's unfortunate that the project sparked off more controversy, and produced less of electricity," says Vinayat Bapat, former CFO at DPC, currently serving as an independent director in a few companies in Mumbai and Pune.
The high-flying former chief executive of Enron India, Sanjay Bhatnagar, went back to the US, and set up a private fund called THOT Capital in New York. The fund buys out discounted debt in distress sales, and turns it around before selling them. Currently, chairman and CEO of THOT Capital group, Mr Bhatnagar was recently in India to hold discussions with interested parties in India, including ICICI. ET's efforts to reach him proved futile.
Reliance group had recruited two top executives of DPC -- Sanjeev Khandekar and Mukesh Tyagi, both senior vice-presidents of DPC, soon after the collapse of DPC in '01. While Mr Khandekar is still with Reliance Energy, Mr Tyagi has recently moved to Essar Power.
Mohan Gurunath, Enron India's vice-president (finance), had moved to Tata Power, and was heading its business development department, till '04-end. In January, he joined Hyderabad-based Maytas Infra Ltd, an arm of the Satyam Group, as its chief executive officer.
While there is a concerted effort to bring the Dabhol project back on stream, at least some former employees are guarded in their optimism. "The scenario is not too much different now. There are a lot of government guarantees. There will be a take-or-pay gas deal, while gas linkage is yet to happen. The lenders have lost cash inflows from the plant for four years. The only saving grace is that the unit cost will look less, since the plant will be operated at base load," said a former employee.
"The state government was caught napping for 4-5 years, when the DPC controversy was raging. They have not even set up one MW power plant," says another official.
Others say it's a great asset. "If Gail takes the LNG regassification plant, it would overnight turn into another Petronet LNG. At Dabhol, Gail can sell 2.1m tonne of LNG to DPC, and another 2.9m tonne through merchant sale," said another official.
"It's a great feeling that the power plant is coming back on stream. Hope it doesn't generate any controversy this time around," said Mr Tyagi.
To see more of The Economic Times, or to subscribe to the newspaper, go to http://economictimes.indiatimes.com
Copyright (c) 2005, The Economic Times, India
Publication Date: 18-JUL-05
Enron men shed their garbs, but power ahead.
Byline: Anto T Joseph
Jul. 18--MUMBAI, India -- Enron may be a bad word in the US, but it's definitely not so in India. At least not for the old guard at Enron India and its subsidiary, the ill-fated Dabhol Power Company (DPC). They still have those memories about India's largest power plant that was set up in the picturesque Dabhol village in Ratnagiri district, which entered the history books for creating a long and complex legal battle between the promoters and the lenders -- foreign and Indian.
Most of the former top officials of Enron India and DPC have moved to other Indian power companies, while a few moved back to their home country, the US. Despite the nostalgia, many do not mention the word 'Enron' in their CVs.
"Give us credit for what we have created. The 2,184-mega watt power project, when India was on the verge of a power crisis, a regassification plant and an LNG terminal at $3bn was indeed a national asset. It's unfortunate that the project sparked off more controversy, and produced less of electricity," says Vinayat Bapat, former CFO at DPC, currently serving as an independent director in a few companies in Mumbai and Pune.
The high-flying former chief executive of Enron India, Sanjay Bhatnagar, went back to the US, and set up a private fund called THOT Capital in New York. The fund buys out discounted debt in distress sales, and turns it around before selling them. Currently, chairman and CEO of THOT Capital group, Mr Bhatnagar was recently in India to hold discussions with interested parties in India, including ICICI. ET's efforts to reach him proved futile.
Reliance group had recruited two top executives of DPC -- Sanjeev Khandekar and Mukesh Tyagi, both senior vice-presidents of DPC, soon after the collapse of DPC in '01. While Mr Khandekar is still with Reliance Energy, Mr Tyagi has recently moved to Essar Power.
Mohan Gurunath, Enron India's vice-president (finance), had moved to Tata Power, and was heading its business development department, till '04-end. In January, he joined Hyderabad-based Maytas Infra Ltd, an arm of the Satyam Group, as its chief executive officer.
While there is a concerted effort to bring the Dabhol project back on stream, at least some former employees are guarded in their optimism. "The scenario is not too much different now. There are a lot of government guarantees. There will be a take-or-pay gas deal, while gas linkage is yet to happen. The lenders have lost cash inflows from the plant for four years. The only saving grace is that the unit cost will look less, since the plant will be operated at base load," said a former employee.
"The state government was caught napping for 4-5 years, when the DPC controversy was raging. They have not even set up one MW power plant," says another official.
Others say it's a great asset. "If Gail takes the LNG regassification plant, it would overnight turn into another Petronet LNG. At Dabhol, Gail can sell 2.1m tonne of LNG to DPC, and another 2.9m tonne through merchant sale," said another official.
"It's a great feeling that the power plant is coming back on stream. Hope it doesn't generate any controversy this time around," said Mr Tyagi.
To see more of The Economic Times, or to subscribe to the newspaper, go to http://economictimes.indiatimes.com
Copyright (c) 2005, The Economic Times, India
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