Model N to invest $25 mn in Hyderabad facility

Model N Inc, a Silicon Valley-based revenue management solutions provider, will be investing $25 million (approximately Rs 117 crore) in its India operations at Hyderabad over the next three years, according to Zack Rinat, its founder and chief executive officer.

Announcing the launch of its Hyderabad centre on Tuesday, the company’s third with the other two located at Redwood Shores in the US and London, Rinat said the centre at present housed 105 professionals, which would be scaled up to 250 by the end of September 2011. The privately-held company follows the October-September financial year.

“Our decision to establish our Asia headquarters in Andhra Pradesh was largely driven by chief minister K Rosaiah’s vision for the region to become a hub for the pharmaceutical and high-tech industries,” he added.

The Hyderabad centre will be engaged in product development, professional services, application support, product management, quality assurance, customer support and documentation, with primary focus on the pharmaceutical, life sciences and high-tech marketplace.

Model N currently has a revenue management suite comprising 14 applications, and has over 40,000 end users in the high-tech space. Talking about revenue management, Rinat said for every $1 billion of revenues, companies leave anywhere between $40 million and $120 million on the table.

“India is projected to be the 10th largest pharmaceutical market by 2015, and is set to be positioned among the top five markets with a $20-billion size in absolute growth terms by then,” he said, adding that the company was expecting the Asia-Pacific region to contribute 20 per cent to its global revenues over a period of time.