Japanese tech major NTT is merging three infrastructure-focused companies in the country from next year to drive revenue and profit margin benefits and is targeting a 20 percent jump in top-line for the integrated entity, a top official has said. The entity, which has over USD 2 billion of investments planned in the country over the next four years, will be led by Sharad Sanghi of the data centers-focused Netmagic, the head of one of the three companies which are being integrated.
The other two companies include NTT India (formerly called Dimension Data) and NTT Com India. Without sharing the current revenue numbers, Sanghi said NTT India has the largest topline among the three businesses and growing at a clip of about 20 percent per year, while Netmagic is the fastest growing at 30 percent per year.
”As an integrated company, we are aiming for a revenue growth of 20 percent per annum over the next three years,” Sanghi told PTI. In a December 2019 report, a company official was quoted as saying that the then revenue rate was over USD 700 million for the combined entity and it is planning to increase the same to USD 1 billion in two years by accelerating on the 18 percent growth.
Sanghi said post-integration, a single sales team will be hunting for more business opportunities rather than working in silos, which will help the topline, while the profit margins will also be aided as services delivery is also integrated. The integrated company will have upwards of over 6,300 employees and there will not be any lay-offs as a part of the exercise, Sanghi said, adding that looking at the growth opportunities it sees, there is a higher scope for upping hiring.
There will be re-purposing of resources once the integration happens, he said, adding that separate teams will also be created for upcoming areas like cloud and security. He made it clear that NTT Data, the software services business which employs over 22,000 people in India who deliver work for global clients, is not being integrated and will continue to operate as a separate entity.
NTT entered India in 2006, with the Communications business, which presently delivers long-distance calling solutions for enterprises and is also undertaking a USD 400 million undersea cable laying project connecting India with southeast Asian countries. Both Dimension Data and the Sanghi-promoted Netmagic which deliver a bulk of its India revenue were acquisitions done by the company.
Sanghi said he continues to work as an entrepreneur crediting NTT for offering flexibility but admitted his responsibilities as the leader for NTT India. Kiran Bhagwanani, who used to lead the Dimension Data business, has taken over as the senior vice president GTM for the Asia Pacific.