Saturday, December 12, 2009

GlobalLogic to restructure biz, plans IPO in 2011


Dec 10 2009, New Delhi

Bhaskar Hazarika

Global offshore product development company, Gl obalLogic India, is re-working its India business plan. It has decided to reorganise its addressable eight business segments into two clear business segments. The company is also planning to go for an IPO in the next 18 months to drive its expansion in the country.

Shashank Samant, president of GlobalLogic, said, “In order to boost our business, we have reorganised the business, making distinct business segments. We see that the focus will strongly reflect in our business performance. The company has reorganised telecom, mobile and embedded into one category and consumer enterprise in the other.”

“The reogranisation wo uld help us strongly focus on the verticals. At present, 55-60 per cent of our business contribution comes from telecom, mobile and embedded category and 40-45 per cent from consumer and enterprise category. The cellphone space is witnessing a massive growth in the country and we are looking at creating applications for Indian consumers,” Samant said.

During the financial year 2008-09, the turnover of the company stood at $90 million. Samant said the market for product development is growing at compounded annual growth revenue (CAGR) of 40-45 per cent.

Samant said the company is also eyeing acquisitions in the product development space given the low valuations. “We will be looking at companies where there are synergies in the domain and technology verticals,” Sam ant added. The company is also looking at expanding markets in eastern Europe and Latin America.

He said in the next five years the revenue distribution globally is likely to change. “At present, the US contributes around 80 per cent which is likely to become 65-70 per cent in five years. Contribution from India is likely to grow as India is growing to be a market in itself,” he added. Israel and India together contributes around 12 per cent now.

© Financial Chronicle


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