Europe to drive Satyam’s growth, eyes acquisitions

Smita Joshi
Posted: Saturday, Sep 15, 2007 at 0000 hrs IST
Updated: Saturday, Sep 15, 2007 at 0237 hrs IST

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Mumbai, Sep 14: Satyam Computer Services Ltd is focusing on increasing its revenues from Europe and Asia and is looking at growing both organically as well as through acquisitions. Emerging verticals like energy and utilities, retail, media and entertainment and travel, transport & logistics will be its key growth drivers in the global foray.

Keshab Panda, head-energy & utilities and Europe operations, Satyam, said, “The market for these four verticals is more than $100 billion each and Satyam is all set to cash in on the huge opportunity available in these verticals.” At present, these four verticals contribute to about 15-16% to the company's total revenue.

“We are investing in creating competency in these four segments and hiring quality employees rapidly,” said Panda. At the same time, Satyam is looking at acquisitions in the consulting space. Satyam is also open to adopt the inorganic growth path in order to gain access to new geographies in these four verticals. Panda is bullish Europe and Asia will contribute significantly in the growth of theses above mentioned verticals.

Declining to give any specifics on its expansion plans in Europe, Panda revealed that the company has recently (in last 45 days) signed two deals worth $55 million in Europe and will be announcing more deals that the company is on the verge of finalising soon. These deals will add to the growth company's revenue from Europe in the coming fiscal. The company is also setting up a low-cost development centre in Russia. “We are at present exploring possibilities in Russia, Spain and Poland to set up a development centres, of which one will be finalised soon,” adds Panda. Declaring that the company has so far no impact of the recession in US as its direct exposure to the subprime mortgage lenders is negligible and to the mortgage segment as a whole is less than 1% of the company's revenue. “We are focusing on de-risking strategy, and are now looking at de-risking the company geographically, technologically, vertically and de-risking it customer wise. Hence, we are spreading across geographies, increasing presence in new verticals and also reducing our dependence on our top clients,” said V Srinivas, CFO of Satyam.

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