GSS America’s Rs. 90-Crore Expansion Plans
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: Business Standard
In growth mode, GSS America Infotech Limited, a Hyderabad-based enterprise application integration and infrastructure management services company will be investing Rs. 90-crore for expanding the firm.
The funding will be used to set up an additional global delivery centre (GDC) in Hyderabad, including meeting working capital requirements for GSS America and establishing offices at various strategic locations overseas.
Bhargav Marepally, Chairman and Managing Director of GSS America Infotech confirms an IT park building at Hitec City has been short-listed for setting up an off-shore facility, with the services of Centrix Interior Private Limited engaged for designing its interior.
“The total cost for the 1-lakh sq. ft. facility is estimated to be Rs. 61-crore, while we require Rs. 25-crore towards working capital. We are looking at hiring around 1,000-professionals for the facility and expect to fully occupy it by the end of this financial year,” says Bhargav.
Currently, GSS America has two global development centres in Hyderabad, with a headcount of 270-employees, while globally, it employs over 550-professionals. High on ambition, GSS also plans to set up offices in Europe, West Asia and Far East, within the next two years.
Bhargav states, Rs. 9-crore will be required for the setting up of its overseas offices, and initially, these facilities would look after implementation and support functions for GSS products. Eventually, these overseas offices will concentrate on the marketing functions of the company in their respective regions.
In order to raise funds, GSS hopes to tap the capital market with an initial public offering (IPO) of over 3.4-million equity shares worth Rs. 10 each through a 100% book building route.
Bhargav informs: “We have filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and are now awaiting the regulator’s clearance to go ahead with the IPO during this financial year,” adding GSS America hopes to enhance its position as a key player in the global IT solutions and services industry through the inorganic route, by acquiring firms overseas.
Bhargav claims GSS America has already identified three overseas firms and initiated a process of due diligence. A Letter of Intent will be entered into, once the IPO has been set up.
Successfully pursuing its plans, last year i.e. in April 2006, GSS America Info-tech with the help of its US subsidiary GSS America Inc., managed to acquire Infospectrum Consulting Inc., an US-based consulting company, whose projected revenues for the current year stand at $17-million.
