If it were to achieve the goal, the $225-million company would need to grow at 35% compounded annual growth rate.
MUMBAI: Mid-cap information technology company NIIT Technologies, spun out of IT training major NIIT in 2004, is looking to join the billion-dollar topline club in five years. The company would actively pursue an inorganic growth strategy to achieve the target.
“Our vision is to build a billion-dollar corporation in five years. And not all of it would come from organic growth. We are looking at inorganic opportunities and have a separate team in place to scout for inorganic opportunities,” chief executive Arvind Thakur told analysts on Friday.
If it were to achieve the goal, the $225-million company would need to grow at 35% compounded annual growth rate. During FY07, it grew 47% over FY06. Net profit growth, however, was faster at 95%.
Inorganic growth is not new to NIIT Tech. Last year it acquired UK-based $25 million revenue ROOM Solutions. Earlier it bought the US’ Osprey, Germany’s AD Solution and DEI. The company is said to be close to another buyout in the retail or financial services space in the $20-50 million bracket, though Thakur didn’t comment on it.
The new growth drivers are likely to come from some of the new services initiatives like remote infrastructure management, packaged implementation and business process outsourcing (BPO). “Enterprise solutions (packaged implementation + managed services) contributed 17% of our revenues. Here, the business is non-linear to head count,” Thakur said.
The company manages the IT infrastructure of Swiss cement major Holcim and has managed to mine the account in India, where Holcim has a majority stake in ACC.
The company is also counting on its equal joint venture (JV) with the €21-billion staffing giant Adecco.
Chairman Rajendra Pawar said the company would remain focused on its chosen verticles — financial services (42% of revenue in FY07), retail and manufacturing (12%), and travel and transportation (25%). A weak dollar is a lesser worry for the company as it is less dependent on the US (32% of revenue). Europe accounts for half its sales.
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