Mumbai: Tata Elxsi is planning to set up its Innovation Design and Engineering business unit, which provides creative design solutions, in the UK.
The design studio would help position the company’s services in the high-value added segment markets.
Tata Elxsi chairman Syamal Gupta said, "The huge business opportunity that is available for this, especially in the US markets have to be addressed carefully. The common business model in the US markets was for the studios to be paid for their services from the box office proceeds of the work delivered, which consequently exposed this business to significant commercial risk."
Tata Elxsi posted a 30 per cent increase in turnover from Rs 308 crores during 2006 – 07 to Rs 402 crores during 2007 – 08 and was able to increase its profit before tax from Rs 60.53 crores to Rs 61.34 crores and profit after tax from Rs 52.12 crores to Rs 52.66 crores.
Tata Elxsi’s software development services segment comprising product design services, design engineering and visual computing labs, recorded a 30 per cent increase in turnover from Rs 263 crores during 2006 – 07 to Rs 342 crores during 2007 -08. The segment results, however, dropped by two per cent from Rs 61 crores to Rs 60 crores, largely due to the capacity building measures.