Hey Balaji,
<xsl:variable
name="concatstr" select="concat($var1,$var2)"/>
<xsl:variable
name="Trimstr" select="normalize-space($varwithSpace)"/>
Refer to a whole bunch of functions at
http://www.w3schools.com/Xpath/xpath_functions.asp#string
Thanks
Please mark as answer if it helps.
Sriram N http://srirambiztalks.wordpress.com/