IBM forays into Coimbatore - More Info

IBM India today announced its operations in Coimbatore, as part of its expansion plans to enter 14 new cities in the country. This would enable IBM to cater specially to the unique requirements of the various SMB clients spread in the city of Coimbatore and neighboring markets.

Ramesh Narasimhan, Director – GSMB, IBM India, said “Opening operations in Coimbatore is an example of IBM’s continued commitment to working closely with SMBs throughout India to provide them with products, solutions and value added offerings that will give them the boost to get ahead and succeed.”

“Coimbatore, a strong manufacturing and resource hub for many industries will be an important market for IBM and this initiative from us will further cement our commitment to grow Coimbatore to an even stronger global market through our innovative collaboration with IT and their businesses,” Ramesh added.







IBM’s portfolio of clients in Coimbatore includes Suguna Poultry, Karur Vysya Bank, Lakshmi Vilas Bank, Roots Industries, Shanti Gears, KGISL, Precot Meridian Ltd, L G Balakrishnan & Bros, Super Spinning Mills Ltd, among others. IBM plans to work hand-in-hand with local ISVs to provide new and existing clients with additional value-added solutions that are specifically tailored to the local market.

With over 3000 SMB customers in India, IBM’s operations in Coimbatore will target various clients in Government, Banking and Finance, Retail, Manufacturing, Automotive, Educational sectors among others.


As the fastest growing sector in IBM India, the Global Small & Medium Business (GSMB) unit is ready to address this growth and offer SMBs the solutions and technologies that are critical to their survival in the challenging Indian market. Mid-market companies have distinct needs that are often ignored by most service providers. IBM’s Technologies and Solutions for Indian Small and Mid-market businesses provide a competitive edge in this era of globalisation.

IBM has invested in the development of products and services specifically priced and designed for the SMB marketplace under the brand name ‘IBM Express Portfolio’. IBM's Express portfolio is comprised of hardware, software, services, solutions and financing and is designed to meet specific criteria for SMBs.

These offerings are delivered through sales and marketing team of 6,000 people and a network of 90,000 Business Partners, organized in 243 local sales territories around the world.

IBM commences Coimbatore operations

In looking to establish office at strategic locations, IBM India is no exception. But what seemed strange was the location of the company's office in Coimbatore.

Instead of looking for space in an IT park or a commercial building in the heart of the city, IBM has set up its office at the Business Centre at the Residency.

On the reason behind choosing the business centre in a prominent hotel, Mr Ramesh Narasimhan, Director (SMB), India and South Asia, said: "We are looking at logistics to start off our operations here. We will have a much larger operation very soon."

The company is planning to establish its offices in 14 new locations this year, including smaller hubs such as Madurai, Vizag and Kochi in the South.

Expansion plans

"We will be strengthening both - our reach (by setting up offices) and people," Mr Narasimhan said.

Though he did not specify the numbers that the company proposed to add to its rolls this year, he maintained that IBM India would look at picking up freshers and lateral recruitment in a big way. The company added 15,000 people last year, taking the headcount to 53,000 in 2006.

On the team size here, he said: "We have people travelling across locations all the time, addressing different markets and resolving issues. The establishment of a set-up is only to strengthen and build relationship with customers and partners."

IBM works with 1,500 partners nationally, including 200 in Tamil Nadu.

Mr Narasimhan indicated that the company would strive to increase these numbers. According to him, partners help strengthen IBM's reach, adding their own value, and aid in relationship building.

On the cost of establishing its office here, he said that $6 billion has been earmarked for investments in India.

"We will be using the funds from this corpus for setting up offices across new locations and for establishing a global delivery centre and software labs, among others."

TN (Coimbatore), Gujarat top contenders for L&T's boiler plant

The supercritical boiler plant of the L&T-Mitsubishi joint venture is likely to come up either in Tamil Nadu or Gujarat.

The sites under consideration in Tamil Nadu are near Coimbatore and Chennai, Mr Y.M. Deosthalee, Director and Chief Financial Officer, L&T, told here on Friday.

Asked how a new plant would be competitive against established players such as BHEL, who also have an advantage of scale, Mr Deosthalee said that `economies of scale' was only one aspect of costing. More important was the technology factor, especially in hi-tech areas such as supercritical boilers.

Mr Deosthalee said that L&T would soon make an announcement about a tie-up for technology for manufacturing turbines.

Oil rigs

Answering a question, he said that L&T, which has just made a foray into shipbuilding, would also get into production of oil rigs.

Noting that manufacturing oil rigs was a lot more complex than making ships, Mr Deosthalee said that L&T might have a technical tie up for that purpose. He said the company could get into production of rigs between six months and one year from now. He indicated that the rigs might be produced at Oman, where L&T has a joint venture (between its wholly-owned subsidiary, L&T International FZE, and The Muscat Trading Co).

Another area that L&T is keen on entering is railways. The company will soon appoint a consultant to look into areas to get into. The possible areas include production of rakes and locomotives, undertaking projects on BOT basis and metro rails. Mr Deosthalee almost ruled out manufacture of operating signalling systems.

Asked whether L&T's next ship building yard (after Hazira, Gujarat) will come up at Ennore, near Chennai, Mr Deosthalee said that there were "reasonable chances" for that.

In the aviation sector, L&T in February signed a MoU with Boeing for "joint exploration of business opportunities". The two companies were examining the opportunities. He counted providing design services and manufacture of parts among the possible areas, but ruled out getting into MRO activities.

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RAK Investments in Coimbatore IT SEZ

Ras Al Khaimah (RAK), the fourth largest of the seven emirates forming the United Arab Emirates (UAE), has identified Tamil Nadu for mega investments, and is expected to invest Rs 20,000 crore in developing infrastructure and feeder townships.

The Ras Al Khaimah Investment Authority (RAKIA), a semi-governmental agency set up by the government of RAK to promote investments in RAK and abroad, has identified two projects - one each at Coimbatore and Kadalur in Kancheepuram district - to invest about Rs 20,000 crore in residential township projects.

RAKIA is expected to invest about Rs 2,000 crore in the initial phase. The land for the two projects is being purchased privately by the promoters.

A memorandum of understanding was signed recently by S Ramasundaram, chairman and managing director, Tamil Nadu Industrial Development Corporation (Tidco) and Khater Massaad, chief executive officer of RAKIA, in the presence of Tamil Nadu chief minister M Karunanidhi for implementing the above projects, according to a government release.

The Coimbatore project would come up in an area of 1,000 acre and would have an IT SEZ supported by an integrated township, which will have social infrastructure including a golf course, shopping malls, a resort hotel, wellness spa, and single and multi-family homes with international standards. The project, which is expected to be completed in five years, will have about five million sq. ft of IT space and generate job opportunities for over 50,000 people.

RAKIA’s other project, which will come up on a 500-acre area in Kancheepuram district, will have water sports, leisure, entertainment and high-end residential and world class golf course. This project would provide job opportunities for over 15,000 people.

Coimbatore is emerging as the next major destination for the manufacturing sector. While several IT firms are looking at Coimbatore for future expansion, a number of manufacturing companies have also set up shop here due to availability of skilled labour.

Engineering and construction giant Larsen & Toubro has made Coimbatore its high-tech manufacturing hub. It has set up two facilities on over 300 acre in Coimbatore for the manufacture of high-end industrial valves and switchboards to cater to domestic and international markets.

Germany's Robert Bosch has also set up its engineering centre in Coimbatore to support its high-end technology products and services.