Don’t miss the latest developments in business and finance.

Majesco aims to double revenue from India to USD 4 mn

Image
Press Trust of India Mumbai
Last Updated : Aug 19 2015 | 7:02 PM IST
Betting on India play, Mastek's demerged insurance arm Majesco is looking to double its revenue from the Indian market to USD 4 million in the next three years.
Majesco MD Farid Kazani told PTI that Majesco's revenue from India accounts for only 2 per cent of its total income due to limited scope of opportunity in the country.
However, he said "there is a good possibility for us to increase our revenue to USD 4 million from USD 2 million".
With a majority of its business in the US, the firm could also consider acquiring Indian companies servicing the US market but with insurance capabilities.
Majesco, which got listed on BSE and NSE today, hit the upper permissible limit for the day.
The company is a provider of insurance technology software and IT services to insurance firms globally, with the US accounting for 88 per cent of its income.

More From This Section

Noting that insurance penetration in India is still low, Kazani said the company's expansion plans in the country would be "subject to growth in business of the country's insurance companies".
Kazani observed that most insurance firms in India have taken IT services from their respective parent firms.
"We work with insurance companies and we provide them with distribution modules as they need to reach various parts of Indian geography.
"But these companies have not changed their IT systems. With FDI coming in and their business set to grow, they will definitely need some kind of IT re-architecture and some other softwares. Then, we will play a bigger role," he added.
Majesco CEO Ketan Mehta said, "In terms of acquisition, we can look to acquire firms in India which are servicing the US market, but have insurance capabilities."
On its listing on Indian capital markets, Kazani said the firm is "not looking to raise funds" from the system.
Kazani said that as most deals by the company will relate to acquisitions in the US, it would prefer raising funds in dollars.
The company is listed on the New York Stock Exchange.
In September last year, the board of Mastek approved a demerger of insurance products and services business into Minefields Computers Private -- renamed as Majesco -- followed by transfer of offshore insurance operations by Majesco to Majesco Software and Solutions India, an arm of MajescoMastek Insurance Software and Solutions.

Also Read

First Published: Aug 19 2015 | 7:02 PM IST

Next Story