IBS plans Rs 160cr expansion

Thiruvananthapuram-based IBS Software Services, an IT firm, a provider of IP products for transportation and logistics sectors, plans to invest Rs 160 crore over the next 18 months to expand its development centres in south India.

The company is funding the expansion of the development centres through internal accruals and external agencies. The privately-held company secured Rs 242 crore funding from General Atlantic, a US-based global equity investment firm last July.

At present, the Rs 200-crore company has development centres in Thiruvananthapuram and Kochi where close to 2,000 personnel are employed. The company is in the process of setting up its third centre in Bangalore to accommodate another 300 personnel. The Bangalore centre will become operational next fiscal.

"At present, we have 300,000 square feet of office space spread between Thiruvananthapuram and Kochi. We intend to increase the office space to 1.2 million square feet by 2009. The expansion includes additional buildings in Thiruvananthapuram and Kochi," said IBS Software Services Founder and CMD V K Mathews.

The company is setting up another campus near Kozhikode spread over 25 acres. It is in the process of acquiring land from the Kerala government.

"By 2009, we expect the company to employ 4,000 personnel. We are also keen on acquisitions to make the company a Rs 1,000 crore entity by 2010," he added.

IBS has 12 development centres outside India most of which came through acquisitions.

In 2002, IBS acquired TopAir, a flight management solution, from EDS. In September 2003, it acquired Avient Technologies, a business unit within Honeywell International offering flight operations and solutions for airline ô airport operations.

In March 2006, it acquired the assets of Discovery Travel Systems based in Virginia, USA, a provider of 'Business to Business' travel technology systems to the cruise, tour and vacation travel industry.

"Though we have 12 international development centres, 80 per cent of our personnel are working in India. We will continue to grow in India," said Mathews.

IBS clientele includes Shell International, Emirates, Cathay Pacific, Nippon Cargo Airlines, WestJet, South African Airways and Royal Caribbean Cruise Lines.

"We have close to 100 active clients with long term relationship (5 years to 10 years). Our existing clients are also aiding our growth," he stated.