You are here: Home » Companies » News
Business Standard

NTT targets $1 billion revenue from India operations in next two years

Currently, the overall India revenue of the company, which announced an integration of all businesses into a single entity recently, is over Rs 5,000 crore

NTT | smart cities | NTT Com India

Press Trust of India  |  Mumbai 


Japanese technology major has set a target of crossing the $1 billion revenue target in the next two years from its india operations.

This means that the company that has been growing at an average of 18 per cent in topline income for the past eight years will have to ensure a better run rate in revenue growth, a top official has said.

Currently, the overall India revenue of the company, which announced an integration of all businesses into a single entity recently, is over Rs 5,000 crore, according to the official.

Though 28 have been integrated under a single brand, derives as much as 90 percent of the revenue from system integration (erstwhile Dimension Data) and data centres (Netmagic).

"We want to focus more on the domestic business opportunity and grow the business to make it a $1-billion (over Rs 7,100 crore) business in the next two years," Chief Executive Officer (South Asia) Kiran Bhagwanani told PTI in a recent interaction.

He admitted that given the shape of the domestic economy, this is tough task but said NTT's first focus will be to protect the average revenue and profit growth and then take it northward.

Bhagwanani said the key focus will be Japan-related businesses pointing out that projects like the Delhi Mumbai Industrial Corridor and other dedicated corridors in the south part-funded by Japan, as also Japanese companies' investments in India are untapped areas.

Along with it, the "ballooning" data centre market also presents an opportunity for high growth, he said, choosing not to reply to questions on increased competition from domestic players like Adani Enterprises, which has plans of investing over Rs 70,000 crore into the segment.

Currently, a bulk of the system integration revenue is derived from the finance and manufacturing companies, making the Indo-Japan trade-linked area as an untapped potential, he said.

Bhagwanani said it is indeed difficult to do business with government entities due to oft repeated concerns like payment schedules but added that this line contributes less than 2 per cent to its revenue.

To drive home the point, he said the company has delivered profit as expected for the past 28 quarters consecutively.

He hoped NTT's solutions on agriculture, mobility and the 'smart world' initiative will also gain traction as it implements the 'Digital India' and 'Smart Cities' programmes.

India employs 6,500 and will continue to add people at the rate of 15 per cent per annum despite the progress done on automation, he said.

Bhagwanani said the company is a "net job creator" in India and that if one were to consider the strength of its workforce which is delivering services to global units from India, the staff strength is over 32,000 people.

When asked about the telecom venture Docomo and about the payments due as part of the adjusted gross revenue ruling of the Supreme Court, Bhagwanani said that this is beyond his company's remit as it is an investment by a different group entity.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, December 08 2019. 15:00 IST