India’s 3i Infotech plans GCC buys

3i Infotech, the Indian IT services and software product firm, could go for acquisition of companies in the UAE and the wider GCC region in a year or two, a senior official of the firm has said.

The company, promoted in 1999 by the NYSE-listed ICICI Bank, India’s largest private sector lender, has already done two acquisitions -– in 2001 and 2003 -- in the UAE.

"We might look at some small acquisitions provided we get a good value and if it is a strategic fit to our business. In the next 1 or 2 years we are open to such kinds of proposals,” Pankaj Chawla, President (Middle East, India, APAC & Africa), 3i Infotech, told Emirates 247.com.

He said: “Going forward we may look for some acquisitions in the region but we’re not close to any acquisitions.”

Asked whether the company is targeting acquisitions in the UAE or the entire GCC region, he said: “The company evaluates proposals globally so in this region we get proposals from across GCC.”

The firm, whose global revenue for the nine-month period ending December 31 last year stood at $421.32 million (Dh1.54 billion), serves around 700 customers in the Middle East and Africa region.

He said out of $421.32 million, emerging markets generate around 40 to 44 per cent. India however remains the biggest market within emerging markets, generating around 22 to 23 per cent of the firm’s global revenue, while GCC’s share is around 8 to 9 per cent, he added. 

The firm, which has its regional headquarters in Dubai for the emerging markets that includes India, Middle East, South Asia, Asian-Pacific countries, is also adding more strength to its existing staff in the UAE and the wider GCC region in the coming months.

“We are ramping up our employees in UAE as well as GCC as our business expands but there is no specific target number,” Chawla said.

Within the Middle East, around 50 per cent of the firm’s revenues come from the banking, financial services and insurance (BFSI) sector while roughly one-third of revenues come from the manufacturing, retail, distribution (MRD) sector, he said and added that the UAE remained the largest market for the firm within the region.

“Our biggest business comes from the UAE and Saudi Arabia in terms of revenues as well as customers. At the moment the UAE is the largest market within the Middle East in terms of revenues and customers because of our very large installed base of ERP. However, the fastest growing market is Saudi Arabia and it’s almost coming to the size of the UAE,” he added.