Infosys invested Rs63 crore in overseas subsidiaries in FY’09

Infosys invested Rs63 crore in overseas subsidiaries in FY’09
PTI
Comment E-mail Print Share
First Published: Tue, Jun 02 2009. 02 47 PM IST
Updated: Tue, Jun 02 2009. 02 47 PM IST
Mumbai: IT major Infosys Technologies has incurred a capital expenditure of Rs63 crore in its three loss-making subsidiaries in China, Mexico and the US last fiscal, the company said in its annual report.
“We have invested Rs22 crore each in Infosys Mexico and Infosys Consulting Inc based in Texas, US, while making an additional investment of Rs19 crore in Infosys China during FY 09,” Infosys Chief Executive Officer and Managing Director S Gopalakrishnan said in the report.
During fiscal 2005, the company established Infosys Consulting, a wholly-owned subsidiary in Texas, the US, to add high-end consulting capabilites to its global delivery model and in FY ‘09, the company serviced 96 clients, and generated a revenue of Rs287 crore with a net loss of Rs59 crore, the company said in its annual report.
The company has so far invested Rs193 crore ($45 million) in Infosys Consulting, which includes an investment of Rs81 crore in FY´08.
Its wholly-owned subsidiary, Infosys China, was formed to expand its business operations in that country. The company invested Rs65 crore ($14-million) of capital in the subsidiary and advanced a loan of Rs51 crore ($10 million) in FY ‘09.
Infosys China serviced 71 clients and generated a revenue of Rs129 crore, with a net loss of Rs11 crore. Its employee strength as on March 2009 was 1,053.
The Mexican subsidiary, Infosys Technologies S de R L de C V was established in 2008 as the first Latin American subsidiary. The Infosys board has approved an investment of up to Mexican Pesos 60 million.
The Mexican subsidiary provides a complete range of business consulting and IT services for clients in all industries including banking, financial serivices, retail, consumer packaged goods, resource, energy and utilities.
The centre provides key offerings in business process outsourcing, infrastructure management and packaged solutions implementation, the company said.
The Australian subsidiary, Infosys Australia, serviced 48 clients and generated Rs549 crore in revenue with a net profit of Rs46 crore. It has also acquired 100% of the equity shares of Mainstream Software Pty Ltd for a cash consideration of Rs12 crore.
During March 2009, the company also incorporated a wholly-owned subsidiary, Infosys Technologies (Sweden) AB, in Sweden. The Board has approved an investment of up to SEK 1,00,000 (Rs0.06-crore) and the subsidiary is yet to commence operations.
Comment E-mail Print Share
First Published: Tue, Jun 02 2009. 02 47 PM IST