• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Bangalore, Oct. 5 MindTree Ltd has entered the mobile products business with the recent acquisition of Kyocera’s captive unit in Bangalore, where it would design and build ready-to-brand 3G handsets for telecom service providers and original equipment manufacturers (OEMs).

MindTree has set up a new business unit N!Mo or Next in Mobility, which will be part of the company’s product engineering services group.

“N!Mo, the seventh engine of growth, will play an important role in achieving our stated vision of $1 billion in revenues by 2014,” said the MindTree Chairman, Mr Ashok Soota, adding that the new business unit would roll out its first product in the next 12 months.

N!Mo will address the complete product lifecycle from concept through delivery leading to ready to brand products in wireless technologies for its customers.

The team of 600 domain experts acquired from Kyocera would be driving N!Mo’s growth.

“Devices are no longer the core for operators as they shift focus towards offering services on devices,” said Mr Samartha Raghava Nagabhushanam, President and CEO of N!Mo.

N!Mo would further accelerate MindTree’s non-linear growth strategy, where the company expects to charge its customers on the royalty model, said Mr S. Janakiraman, Group-CEO for Product Engineering Services at MindTree.

MindTree paid $6 million (Rs 29 crore) in cash for Kyocera’s India unit that was engaged in wireless product development, software engineering and product testing for the CDMA mobile phone maker’s global portfolio.

MindTree has retained Kyocera as a key customer and expects to earn about $9 million from October 2009 to March 2010 period. Profit after tax from Kyocera for the period is expected to be in the range of 13-15 per cent.

However, Mr K.K. Natarajan, MindTree CEO, said the company was not revising its guidance after factoring in the revenues from Kyocera. MindTree scrip shed 2 per cent to close at Rs 598 on Monday.

More Stories on : Telecommunications | Diversification

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line