Exactly one year to the day the Mahindras moved in to rescue fraud-mauled Satyam, the company announced on Tuesday the commencement of its special economic zone (SEZ) project in Hyderabad, shifting the mood from a turnaround towards an ambitious future.
On April 13, 2009, the Tech Mahindra was named the strategic investor by government-appointed nominees of Satyam Computer Services, whose chairman B. Ramalinga Raju had confessed three months earlier to India’s biggest corporate fraud before being arrested.
“The commencement of the Mahindra Satyam IT SEZ in Hyderabad is a significant milestone for the company, It showcases the resurgence of Mahindra Satyam,” said corporate affairs minister Salman Khurshid, who was in Hyderabad to mark the occasion. His ministry had initiated the turnaround.
Mahindra & Mahindra Chairman Anand Mahindra brimmed with confidence as he celebrated the anniversary of the entry that took the Mahindras into the top league of India’s IT industry. Mahindra nominee Vineet Nayyar was named Chairman of Mahindra Satyam last December.
“From this day, last year, we have come a long way in our efforts to re-establish our position in the Indian IT landscape. It makes us all proud that we are on course to achieve what we had set out to do and I believe that it has been possible
only with the dedicated efforts of the associates and support from their families,” Mahindra said.
Mahindra Satyam—the name it acquired after Tech Mahindra took over—is a leaner and more manageable. While, it had 52,000 employees before the scam came into light, today the staff strength is 32,000.
However, the final statement of account of the firm is yet to come. A source who did not wish to be identifies said that after the statement of account comes in June, there could be a thinking of merging the two giants.
“This is perhaps the first time that a company and the brand have been saved despite being hit by complete disruption in corporate governance,” Amit Mitra, secretary-general of industry chamber Ficci, said.
An official of Mahindra Satyam also said that there would be "further recruitment" as and when the need arises.