Zensar Tech aims to enter billion-dollar club by 2016
News | 26 Jul 2012
Zensar Technologies the mid-cap IT and BPM services provider, is targeting to enter the billion-dollar club by crossing $1 billion in revenues by financial year 2016. “We are planning to target total revenues of over $1 billion in the financial year 2016 through organic growth and acquisition route,” Ganesh Natarajan, vice chairman and CEO at Zensar Technologies told Financial Chronicle after the annual general meeting (AGM) on Tuesday. The Pune-headquartered company had clocked total revenues of $372 million in financial year ended March 2012. “We are targeting $400 million revenues from the present $160 million revenues from the high-tech, discrete, medical equipment and industrial manufacturing sector,” Natarajan said. Similarly, another $400 million revenues will be planned from infrastructure management services (IMS), the fastest growing segment within IT services, he said.
Last year, it had contributed $150 million in revenues. “The balance $200 million revenues will come from other verticals such as retail, healthcare, banking, government, utilities and others,” Natarajan said. The company has hired two investment banks to scout for new companies. “We want to acquire a cloud computing (virtualisation technologies) firm and one in the SAP segment with over $25 million ticket size each in the US,” Natarajan said. Zensar Technologies is also on the lookout to acquire an information security services firm for about $15 -20 million in Germany or Holland, he said. The fourth firm to be acquired will be in the infrastructure management services segment with a $5 million ticket size, he said. “These acquisitions will happen in the next six to 12 months,” Natarajan said. The company is also expanding its footprint in the West Asia, Asia Pacific and Africa markets from where it is eying sales revenues of $50 million from each region respectively by March 2016. “We will be opening centres in these regions to derisk our business,” Natarajan said. He said the company wanted to bring down North America’s revenue contribution from the present 72 per cent to 60 per cent, increase Europe’s from 10 per cent to 20 per cent and 20 per cent from the rest of the world.