Genpact plans IT SEZ in Madhya Pradesh

Business process offshoring company Genpact is in talks with the Madhya Pradesh government to set up an information technology special economic zone in the state.

"We have had several rounds of talks with the Madhya Pradesh government. We are scouting for land to set up the IT SEZ, and are awaiting the government's nod for the project," President and CEO Pramod Bhasin told Business Standard.

Bhasin was in Bhubaneswar yesterday for the foundation ceremony for a five lakh sq ft SEZ to be built here in three phases.

Genpact has already set up IT SEZs at Jaipur and Hyderabad.

The company has planned another IT SEZ in Kolkata at an investment of Rs 100 crore. It is looking out for five to seven acres near the city and will begin construction by mid-2008.

Genpact has facilities at DLF IT Park in Rajarhat which accomodates about 400 people and plans to raise the number to 1,000 in a few years.

The Bhubaneswar and Kolkata facilities will collectively employ 4,000 to 5,000 people when they get going by 2010-12. Genpact has about 24,000 employees at facilities at Gurgaon, Delhi, Hyderabad, Jaipur, Bangalore and Kolkata.

GE has a 20 per cent stake in Genpact, while Oak Hill Capital Partners and General Atlantic Partners own 26 per cent each, Wachovia 6 per cent and 15 per cent in owned by the public. The rest is distributed among minority shareholders.

The company expects 25-28 per cent organic growth and and 30-32 per cent inorganic growth in calendar year 2007. With about 45 per cent of its business coming from the banking and financial services, Genpact has projected a 30 per cent growth in turnover this fiscal from $615 million last year.

"The company's organic growth plans entail expansion and rejuvenation of its global and India business plans," Bhasin said. "The company also aims to enter the east European markets in a big way."

Genpact operates in Romania, Hungary and Poland. The company is also looking at China, the Philippines, Mexico and the US.

As for its inorganic growth plans, Genpact is keen on on acquisitions in Indian metros.

"We have global plans, too, but unfortunately I cannot reveal any specifics under the NYSE rules where the company is listed."

The other areas Genpact is interested in are sales and marketing, analytics, supply chain, collections, customer services, information technology, learning and content management.