31 January 2002
P R E S S R E L E A S E
PSI Data Systems acquires Birla Technologies Limited
The Board of Directors of PSI Data Systems today resolved to acquire 99.91% stake in Birla
Technologies Limited (BTL), a Grasim Subsidiary, for a consideration of Rs. 112.6 Million.
This is subject to approval of Board of Directors of Grasim in the matter. BTL, which
specialises in enterprise integration and mobile applications, has annual revenues in excess of
Rs. 300 million, anchored by 250 employees, spanning US, Europe and India.
With this acquisition, the IT sector within the Aditya Birla Group is positioned to become a
much more focused business under a single umbrella. Says Mr. Mukesh Patel, the CEO and
Business Head of the Group’s Software and IT Services “Distinctive advantages stem from
the expanded footprint that the combined entities of PSI and BTL offer. Besides synergies in
product offering and services to end users, we will be geared to win and execute larger
business deals, given our collective strengths and expertise”. Mr. Patel added that “cost
savings across several support functions as we exercise our growth plans in the near future
will be significant as well”. The two companies’ areas of specialisation which necessarily
underpin their future growth plans, are based on their core competence in vertical segments
such as Banking & Financial Services amongst others and domains such as applications,
mobility, security and integration. The integration of the two companies will be planned and
executed considering market reach and organisational efficiencies.
Mr. Damodar Ratha, a noted entrepreneur and President of Alumni Association of
Massachusetts Institute of Technology has been inducted into the Board.
As the operating environment for all companies in the IT space continues to be difficult, PSI
has reported total income of Rs. 174.99 Million for the quarter ended 31st December 2001 and
Rs. 809.92 million for the 12-months ended 31st December 2001. It recorded a loss of Rs.
42.19 Million for the quarte