Eying revenue of Rs 2,000 crore by March 2013, RPG Groups IT services arm Zensar Technologies has reorganised its business into vertical units.
Zensar has realigned its company into five vertical segments — manufacturing, retail, banking and finance services, insurance and connected services like healthcare, government, utilities and transportation. This will be effective from April 2011.
“We were primarily a horizontally-led services firm, though we have had focus in each of these segments. At Zensar, the horizontal play was divided into three segments — global transformation services, enterprise application services and business process outsourcing (BPO). From April onwards, we will have a complete vertical-led company,” said Ganesh Natarajan, Vice-Chairman and Managing Director.
Each of the verticals will bring significant consulting expertise on the domain and will present solutions and services.
Zensar has already begun hiring people for its new format and is in the middle of appointing a banker to head the banking business. Harsh Kohli, who joined the company six months back, will head the manufacturing vertical.
Natarajan said they will take in a few more important people. “The idea is to have, at least, 10 to 12 heavy hitters who will drive the business ahead,” he said.
Within the vertical segment, manufacturing will be the largest business. “Of the Rs 2,000 crore revenue that we are targeting, manufacturing will contribute Rs 1,000-1,100 crore. Followed by insurance and retail. Unlike the industry that gets maximum revenue from the banking and finance vertical, for us it will be a small segment,” he said.
The company has already forayed into verticals like healthcare, utilities, and government. To mark its presence in the new services segment, Natarajan said, Zensar will look at acquisitions, too. “We will certainly look at an inorganic route to increase out presence in these verticals, but they will be in the range of $20-25 million. We would be interested in assets in the product life cycle management and business intelligence area,” he said.
Zensar will also give an added thrust to segments like infrastructure management services (IMS) and electronic manufacturing. “The recent acquisition of Aikibia for $66 million will allow Zensar to compete in the IMS space. We expect to log in revenue of Rs 800-850 crore from IMS by March 2013. In terms of geography, we will focus in West Asia and China. We might also think of setting up a centre in Jordan,” said Natarajan.
Meanwhile, the company has started a 100-day integration plan for Aikibia. “There are three immediate agenda. One is to look at the cross-selling opportunity. Second will be a joint branding and communication campaign. And finally, how do we go about integrating our services,” he said.
The deal was signed in November 2010 and finally close by the end of December. However, the revenues of Aikibia will show on Zensars balance sheet from the fourth quarter of this financial year.
Zensar reported net profit of Rs 33.93 for the third quarter ended December 31 up 4.3 per cent from Rs 32.5 crore in the corresponding quarter last year. Its revenue for the quarter was up 8 per cent to Rs 259 crore from Rs 239.7 crore in the same quarter last year.
