The Essar Group-promoted AGC Networks has chalked out a multi-pronged strategy to strengthen its revenue streams and customer base in India and abroad.
AGC Networks, India’s solutions integrator in unified communications, network infrastructure, information security and business application and consulting, will expand its overseas presence in a significant way.
It will be strengthening its business in Australia, New Zealand, the Middle East and Africa, while looking at North America and Europe for new business opportunities.
“The overall market is growing at more than 10-15 percent. We are identifying new market opportunities in India and abroad. However, the industry is seeing less orders from government vertical in India,” said SK Jha, MD and CEO of AGC Networks.
“We are looking at around 50 percent of our income to come from abroad. Our ongoing expansion, new practices and new partners will hep us in bringing additional revenue. Our ability to work as partners and engagement with our clients are the value addition,” Jha added.
Though the US and European markets are facing turbulent market conditions, AGC Networks is not facing much pricing pressure. “We are selling end-to-end solutions and not boxes. Our ultimate aim is to offer solutions that can improve our clients’ EPS,” Jha added.
AGC Networks is likely to double its revenue in 2011-12 ever since it moved to the Essar group.
AGC Networks has already reported a 98 percent increase in Q2 2011-12 revenue at Rs 257 crore as compared with Rs 130 crore in the second quarter of 2010.
The increase in profit after tax was significant at 124 percent to Rs 19 crore from Rs 9 crore.
In May 2010, the networking and enterprise communications provider Avaya sold 59 percent stake in AGC Networks to Essar Services Holdings, the holding company of BPO firm Aegis, for Rs 206 crore, according to Economic Times.
Avaya’s decision to exit from AGC Networks follows certain ownership and management changes in the US parent. In 2008, private equity firms, Silverlake Partners and TPG, bought out the promoter and the public holding, taking the US firm private. Avaya India was formed and the company decided to follow a multi-channel strategy instead of relying exclusively on AGC Networks for its sales in India.
After it moved to the Essar group fold, AGC started strengthening its partners. Besides Avaya, it currently works with global technology majors such as Juniper, Aspect, Polycom, Extreme Networks, HP, Sony, etc.
In the last one year, the company introduced new practices in order to indentity new business opportunities. AGC Networks also added customers in Australia, New Zealand, the Middle East and Africa. The company’s main verticlas in India include BFSI, BPO and government verticals.
AGC Networks that is following its “Cube Strategy” has almost doubled its manpower in the last one year. The company will be adding around 150 people per year to address new market opportunities.
By Baburajan K
