3i Infotech eyes overseas markets

Information technology solutions provider 3i Infotech Ltd, formerly known as ICICI Infotech, aims to have a greater geographic presence.

While most IT companies concentrate on the US markets for their business, 3i Infotech is looking at spreading to different continents while maintaining a strong Indian presence.

"Unlike other companies, for whom business from the US accounts for 60 to 70 per cent of the total income, 3i Infotech is concentrating on a greater geographical presence and a variety of products in the banking, insurance and ERP segments. With multi lingual products, 3i Infotech will continue this strategy for growth," said V Srinivasan, managing director and CEO, 3i Infotech Ltd.

The company has filed a draft Red Herring prospectus with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering.

It is expected to issue two crore equity shares through a 100 per cent book building route. The issue will constitute 39.21 per cent of the post issue paid up capital of the company.

"We will use the proceeds of the public offering to repay high interest loans and carry out expansions," said V Srinivasan.

For the nine months ended December 31, 2004, 3i Infotech's income has been distributed across several countries. India accounted for 46 per cent of its income in the period, while the US accounted for 27 per cent. Countries in the Middle East, Africa and the Asia Pacific region contributed another 27 per cent.

Srinivasan felt a global presence will enable the company to support existing clients better acquire new clients.

As of December 31, 2004, 31 Infotech serviced over 500 customers in more than 30 countries. 3i Infotech has 15 offices in eight countries.

The total income of the company stood at Rs 219.56 crore for the fiscal ended March 31, 2003, which rose to Rs 232.04 crore for the fiscal ended March 2004.

In the first nine months of the current fiscal, the total income stood at Rs 210.21 crore, while the profit after tax for the nine months ended December 31, 2004 stood at Rs 16.26 crore.

3i Infotech offers a range of multi lingual products for the banking and insurance sectors, along with enterprise resource planning solutions.