Virinchi eyes 50% growth this fiscal

Plans to build Rs 14-crore campus in Hyderabad

City -based Virinchi Technologies Limited, an e-business collaboration solutions provider focusing on the B2B space, expects a 50 per cent growth this fiscal. The company, which had a turnover of Rs 10.5 crore last fiscal, expects to close the current fiscal at Rs 15 crore.

Addressing a press conference on Saturday, Viswanath Kompella, chairman and managing director of Virinchi Technologies, said: "Due to the growth in the services division of the company, as compared to the products division, we expect the growth in the company's turnover."

According to him in the next five years the company would focus more on services rather than on products.

Kompella said that the company plans to build its third facility in the city with an investment of Rs 14 crore. He said that the new campus would come up in a four-acre land on the Rajiv Rahadari and would house at least 1,000 employees.

"The construction would begin from March this year and is expected to be complete and ready for occupation by January 2007," he said. The total work is expected to be completed in three phases of which the first phase includes the acquisition of the land, civil works and completing workspace for 400 people.

He said that Canara Bank has in-principle approved the first round of funding of Rs 6.27 crore. "Apart from the bank funding, the company will be investing Rs 2 crore of its own funds in the first phase," Kompella added.

Responding to a question, he said that the company was not looking at changing the equity shareholding pattern and for future expansion plans might consider going for a rights issue.

The company also plans to double its headcount year on year. "We currently have 220 employees and plan to double it by the end of the current calendar year and by the end off 2006 we expect to have strength of 600 employees," he said.