Dear Shareholders,
This has been a year both for farewells and new beginnings. The Tech Mahindra family,
and indeed the Indian business community, suffered a great loss when Mr. Vineet Nayyar, a
larger-than-life figure in the Indian business landscape, passed away on May 16, 2024.
After a distinguished career in the IAS, Vineet served with the World Bank and served as
the first Chairman of GAIL. He then made a successful transition to the private sector
with HCL. And it was from there that he and two of his close colleagues journeyed to
Mahindra British Telecom. They came in with a startup mentality, determined to take MBT
(later renamed Tech_Mahindra) into the top ranks of the Indian IT industry – a goal
that they successfully achieved. Among other things, the bold acquisition of Satyam, was a
deal spearheaded by Vineet and one that catapulted the Company to international relevance
and paved the way for its future_successes.
Vineet was also instrumental in establishing Mahindra University, catalysing what will
perhaps be one of our Group's most important legacies. All of us in the Mahindra Group
were the beneficiaries of Vineet's wisdom and leadership. It was our good fortune that he
chose to commit the crowning part of his career to the Group. Vineet will always live on
in our hearts.
As you all know, there has been a leadership transition at Tech_Mahindra. CP's
memorable innings with Tech Mahindra came to an end on December 19, 2023, when he retired
after 19 years with the Company. I remember the time, in 2004, when CP, along with two
other colleagues, moved from HCL to a relatively unknown company called Mahindra British
Telecom. CP brought with him an infectious energy and a tireless entrepreneurial flair.
During his 19 years with the Company, over 11 of which were as the MD and CEO, MBT morphed
into Tech Mahindra; the business vision expanded from the telecom business to a
multi-vertical digitally led IT company whose revenue rose 22 times from US$_280_Mn in
2006 to US$_6.3_Bn in 2024. This pole vault was accomplished in no small measure due to
the CP's technological savvy, strong sales and marketing skills and, above all, his talent
for engaging hearts and minds and rallying the troops. His farsighted and people-focussed
handling of the Satyam acquisition is a case study in how to turn a problem into an
opportunity. The Board and I owe him our grateful thanks for his seminal_contribution. I
shall miss CP, both as a colleague and as a friend. As he himself says, he is not really
retiring, just changing gears. I am sure he will bring the same enthusiasm and same
dedication to everything he undertakes, and I wish him well. Today, it is impossible to
talk about any business without talking about technology. Technology is the Golden Thread
that binds what an organisation is doing today with the future world it is trying to
create. Across multi-business organisations, it enables synergy and creates unexpected
business connections. Across industries, it creates collaboration and transformation.
Technology is the Golden Thread that is central to businesses and industries throughout
the world. The future belongs to those who can creatively weave this Golden Thread into a
value-enhancing businessfitapestry.
The idea that it is impossible to talk about business today without talking about
technology has enormous ramifications for IT services companies like Tech Mahindra. All of
us have experienced the dizzying pace of technological change in the last couple of
decades. Experts speculate that the advent of AI will accelerate the speed of that change
even further. Changes that currently take a decade could happen in less than a year! Can
any business, large or small, afford to be left behind? As organisations strive to stay
ahead in the digital race, IT services will play a pivotal role in enhancing that
Golden Thread by integrating AI seamlessly into the core business functions. From
extracting data-driven insights to solving industry-specific problems to revolutionising
customer engagement, the synergy between IT and AI will enable a new era of technological
prowess. It will require higher-order work. It will call for upskilling, But the future
undoubtedly belongs to IT services that can increase the value of that Golden Thread from
18 carat to 24 carat with the power of AI. The race does not necessarily belong to the
large or the most specialised. The winners will be companies that are agile, well-prepared
and can Scale at_Speed.
Even without a crystal ball, I can venture to predict that Tech_Mahindra, under its new
leadership, is well-positioned to leap into this new orbit. My confidence is based on
three major factors. First, in tackling change, preparation is all. Large organisations
today require both speed and scale from their IT partners. Tech_Mahindra has made Speed at
Scale their promise and war cry. A holistic 3-year roadmap for achieving profitable
growth, covering every aspect of the organisation – be it structure, strategy,
technology, client focus, skill development, talent management, performance enhancement
– has been shared with investors. The future landscape is clearly mapped out, and
actions are clearly communicated. Given Tech_Mahindra's past record, the enormous
experience that the new leadership brings to the table, and this high degree of
preparation, I am confident of efficient execution. Secondly, Tech_Mahindra's long and
deep relationship with marquee clients naturally positions it as their "go-to"
guide in this perplexing world of technology. For business leaders, technological changes
are beneficial but bewildering. How many CEOs really understand current technology, let
alone AI? For many leaders, even setting up an Excel sheet is a challenge. As technology
grows more integral and more complex, business leaders need Marg Darshaks, interpreters of
this emerging new world to support them in leading their companies. IT Services will
evolve to become the interface between the potential of AI and its business application.
The professionals who will be the most in-demand from a CEO's point of view are those who
can understand, interpret, leverage and exploit this new powerhouse. Tech_Mahindra's
existing relationships with its clients and its entrepreneurial energy, which is
attracting new ones, will stand it in good stead.
Thirdly, Tech_Mahindra has an edge few other companies have. It is the child of a
multi-business corporation. As we speak, it is partnering in the transformation of the
Mahindra Group businesses across the Group's entire network of companies and locations.
The Mahindra Group itself is their real-time playing field and proving ground to sharpen
their skills – If anyone knows how to find the golden thread, how to embroider it
across businesses, and how to weave the future with it, it is Tech_Mahindra.
In summary, if I may paraphrase Mark Twain, I believe that the rumours that the advent
of AI will be the death of IT Services, are grossly exaggerated. AI will push these
services towards a new frontier, into directions that were hitherto unimaginable –
and Tech_Mahindra will be in the vanguard.
Anand G. Mahindra
Chairman