New Delhi: Top Indian software services firm, Tata Consultancy Services Ltd, has won a $100 million contract from Kimberly-Clark Corp, a source close to the deal said on Tuesday, boosting its stock.
Dallas-based Kimberly-Clark, which makes Huggies diapers and Kleenex tissues, joins a rapidly growing number of foreign firms that outsource design work, supply chain management and payroll processing to India.
TCS officials could not be reached for comment, but the source said the contract would last for several years. Earlier this month, the firm said it had bagged a $90 million contract from Australia's Qantas Airways Ltd.
"TCS is likely to outperform its peers and the index in the short-term, based on these order wins," said an analyst who declined to be identified.
He saw TCS climbing to Rs 1,200-1,250 in six to nine months based on its order backlog. Shares in Tata Consultancy were 2.5 per cent higher at Rs 1,101, down from 1,107.8, in a flat Mumbai market.
The stock was the second most active counter on the Mumbai exchange with 8.8 million shares changing hands by 2:01 p.m. (0831 GMT). Tuesday's volume was the firm's highest since August 25, 2004 when the stock listed and 13.07 million shares changed hands.
TCS has a market value of $23.6 billion, making it the sixth-most valuable Indian stock. India's software and back-office industry, which gets 90 per cent of its revenue from overseas clients, expects exports to rise 27-30 per cent to $29-31 billion in the year to March 2007 as demand for outsourcing remains robust.
Attracted by a large pool of English-speaking engineers and significantly lower wage costs, the industry has been a driving force behind India's strong economic growth of the last three years.
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