City-based information and communication technology company Prithvi Information Solutions Limited (PISL), which had recently acquired Percentix Inc, a US-based business intelligence consulting company, is in the process of acquiring another US company.
“The deal is expected to be completed in a couple of months,” PISL managing director, V Satish Kumar, told Business Standard adding the company to be acquired for about $5 million ( Rs 24 crore) has operations both in the US and India.
PISL, which has targeted to emerge as a $1 billion company by 2013, envisages to double its India revenues in the light of the introduction of 3G services and the eGovernance initiatives undertaken by various state governments.
“We expect an additional business of around $300 million (Rs 1,400 crore) for the company from these two segments in the next three years,” Kumar said.
PISL's total revenues last year stood at $443 million (Rs 2,000 crore). Of this, the contribution from the domestic market is about 30 per cent. The company expects that the share of its domestic revenues in the total revenues will go up to 45 per cent in the next three years.
According to Kumar, 3G services provide a huge scope for mobile applications and the company expects that its telecom products and telecom engineering services business will go up to $250 million (Rs 1,175 crore) and $100 million ( Rs 470 crore) respectively by 2013 from the current level of $150 million (Rs 700 crore) and $20 million (Rs 95 crore).
Similarly, he said, the state wide area networks (Swans), state data centres (SDC) and common service centres (CSC) being set up across the country as part of eGovernance initiatives would increase PISL's revenues from this segment from $ 5 million (Rs 24 crore) last year to $100 million (Rs 470 crore) in the next three years.
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The company has already bagged two SDC projects, one each from the Haryana and Nagaland governments, and is looking for more such projects in other states.
Apart from expanding its domestic operations, Kumar said the company had long-term growth plans in emerging markets such as Brazil, Canada, West Asia and South Africa.
The company is also building a new campus at Shamshabad, near here. The first phase of the campus comprising 150,000 sq feet built-up area is expected to be ready by the middle of next year.
Kumar said the campus, coming up at a cost of around $30 million (Rs 150 crore), would finally have a built-up area of 1 million sft. The cost of Phase I would be about Rs 30 crore.
PISL, which currently embarked on a brand building exercise, has been entangled in a legal dispute pertaining to alleged non-payment of dues to a leading Japanese corporation.
“The case is now before the London Court of Arbitration at Singapore. We anticipate that the negotiations will start sometime in September,” Kumar said.