Single governance body for both Mahindra firms

MUMBAI, INDIA: The newly appointed executive vice chairman for Tech Mahindra and Mahindra Satyam, Vineet Nayyar has given high priority to good governance in the company.

On the sidelines of a press briefing here on Tuesday, Nayyar said, “I will take full responsibility to see that the issues that happened in Satyam, never ever happen again. And try to bring back the pride of Andhra Pradesh,” he said.

About the two companies he commented, “They will exist under the Mahindra family, but will not act as separate companies as they compliment with each other very well. We have the same objective for both the companies and being the executive vice chairman for both firms I will be largely focusing on governance.”

Further, Nayyar suggested about setting up of a common governance board for the Mahindra entities.

“Common governance board will determine the road ahead of the conglomerate and will try to retain the clients and customers. Moreover, it will regain the confidence of the employees of Satyam,” he said.

Nayyar’s strong advocacy and priority for governance reflects his early part of his professional life, where he had started his career with Indian Administrative Service and worked at various senior posts in government.

While replying to questions on the recent introduction of “virtual bench” at Mahindra Satyam, Nayyar pointed that there are about 8500 people sitting on the virtual bench and will be absorbed as and when there’s work opportunities and projects.

Moreover, he affirmed the possibility of merger between Tech Mahindra and Mahindra Satyam in future. “Yes, these companies will merger in future as both companies have same synergies, but I cannot say any data or time when it will happen,” Nayyar said.

“The synergies will help us to save a lot and we have already repaid the funds taken earlier by Tech Mahindra,” Nayyar said.

Meanwhile a Bloomberg report said today that the 8,500 Satyam employees placed on a so-called “virtual pool” may have their positions eliminated in six months if the company fails to find them work.

“We are hoping that this doesn’t happen, that things will pick up, but yes, there is a possibility,” it quoted executive vice chairman Vineet Nayyar Nayyar as saying.