41|LG India : Trying Times
Like its Korean peer Samsung, LG too lost ground as a result of reduced focus on CRT business. Thereby, impacting the overall monitor numbers and IT revenue.

During the year LG forayed into the B2B segment. LG, which has primarily been a consumer-focused company, set up its B2B business unit in January 2008, and will continue setting up its B2B channel through the year.

The company also undertook a consumer segmentation analysis exercise in a bid to address its market more effectively, and to target the right products at the right market segment. In FY 08 it covered notebooks and monitors in this exercise. It also initiated new product developments and incorporated aesthetic changes in its products. In a significant shift in its market strategy for monitors, LG identified the upgrades market as a key focus area in LCDs.

Also, with a slew of big large-format retail chains opening up during the year, LG decided to ride on the bandwagon. It tied up with major retail players like Croma, Reliance Digital, More, Next, etc. Termed by the company as Modern Trade, the retailing business has been identified as one of the three verticals for the company, the other two being PC and components.

42|Tata Technologies : Nano and Beyond
Tata Technologies transition from an in-house IT/design unit of Tata Motors to a global force to reckon with in the engineering services domain is nearing completion. The company, ever since the rather audacious $130 mn acquisition of INCAT two years ago, has been trying to be a full-fledged engineering services firm, and is today Indias largest specialized IT firm.

Its desire to be an all-round engineering services firm made it enter the aerospace segment, which last year contributed 17.5% to its total revenue, next only to its traditional strength, automotive, which contributed 29%. There was also a restructuring exercise; formation of a group company with INCAT and iKS as its operating entities. The export revenue grew 14% despite a slowdown in the global auto industry. In India, it got global attention, thanks to the big bang launch of Nano. Tata Motors accounts for around 15% of the revenue for the company. It is also closely working with group companies, evident from the agreement that it signed with TCS.

43|Polaris : Art of Sustenance
The US slowdown, rupee appreciation versus the dollar, and impact of the sub-prime crisis on the banking sector took its toll on Polaris, especially net profits that plunged nearly 28%. The dependence on a few clients (top client Citigroup accounted for 38%; Top 10 non-Citi customers, 58%) added to its woes.

Things could turn worse this year, with JP Morgan Chase buying out Bear Sterns. With both among Polaris top clients, a likely reduction in JP Morgans IT spend could mean trouble. Succor could however come from the strategic alliance inked with City Networks in February.

Ironically, for a traditional offshore player, the domestic market (16% revenue growth) could yet prove to be the elixir. The Rs 300 crore investment on product development seems to be paying off. IntellectSuite wins included ICICI, HDFC, Kotak, and Axis Bank. Adrenalins HR suite grew 100% while Polaris Retail sold around 15,000 POS systems. The decision to defer the proposed share buyback plans, however, affected investor sentiments and stocks dipped.

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