Black Box targets $1 bn revenue by next fiscal, buoyed by rising demand

On Wednesday, shares of Black Box closed at Rs 204, giving the company a total valuation of Rs 3,427 crore

Black Box, a digital infrastructure provider, is targeting to report consolidated revenues of $1 billion by next financial year as demand for its services from US based clients go up.

Listed on the Indian stock exchanges, Black Box is part of the Essar group and has a significant presence in the North American markets. The group is now betting big on digitisation apart from energy transition. It has recently set up a centre of excellence in Bengaluru to support its global clients and plans to hire 500 more in its India operations. The  Bengaluru centre is equipped with advanced research and development laboratories, command centres, a service desk, and delivery operations targeting its client needs.

“We are targeting companies that need digital infrastructure, whether they are in India or present globally,” Sanjeev Verma, chief executive officer of Black Box Corporation, said. The company will end the ongoing financial year with revenues of Rs 7,000 crore and is expanding its services to the rest of the world. It also plans to open offices in several countries.

Verma said as demand for data storage goes up from companies like Meta, Microsoft and X, more data centres will be set up across the world. 

Black Box would be helping these multinationals to set up the centres by providing the digital infrastructure. Almost 80 percent of the company’s revenues comes from the United States and a large portion of its employees are based in Dallas, Texas.

“The US is our largest market, just like it is for the rest of the technology companies. But unlike them our large number of employees are based in the United States to cater to our clients there. We plan to increase the numbers in future in India as we expect to achieve double-digit growth on the back of a strong backlog and pipeline,” he said.

“The services we are offering in the US are managed extended detection and response services, endpoint detection and response services, and vulnerability management-as-a-service,” Verma said.