Integra chalks out expansion plan

In view of increasing interest among global publishers to offshore publishing BPO services to India, Pondicherry-based Integra Software Services is chalking out an expansion plan involving investments of $10-15 million for inorganic growth as multi-city expansion in India over the next couple of years.

The company is looking at strengthening its overseas presence through two acquisitions. It is in final stages of making the acquisitions and is expected to make announcements shortly, Sriram Subramanya, founder, managing director and CEO of Integra, said.

A 100 per cent export-oriented unit, Integra expects to fund the expansion plan through a combination of internal accruals and debt. In early 2007, the company secured funds infusion from Baring Private Equity (India). Baring has also agreed to infuse more funds if needed.

Integra had acquired Chicago (US)-based Elm Street Publishing Services, a provider of high-end project management, pre-press services to college text books and professional book publishers, last year. The acquisition proved to be a good strategic fit for Integra, he said.

The company employs about 1,100 people at its centres in Pondicherry and Chennai, and has been providing end-to-end publishing services to leading global publishers across North America and Europe.

"We are one of the top 10 publishing BPO services company in India and with our current expansion and inorganic growth strategy, we expect to be among the top 5 players in the country," he added.

In 2006-07, the company posted revenues of $6.5 million and expects to end fiscal 2008 with revenues of $10 million. The US accounts for about 55 per cent of revenues with the rest coming from Europe.

Subramanya points out that leading international publishers are looking at India as a preferred location for publishing BPO services. The Indian publishing BPO services industry has been growing at 35 per cent annually and is estimated at $500 million. While there are about 100 companies in India, 15 top companies account for a major chunk of the business. The industry currently employs about 25,000 people and a major concern is the shortage of manpower.

The industry is likely to touch $1.46 billion in turnover by 2010 and employ about 75,000 people.