Reliance Communications expects enterprise business to post 24% revenue growth

NEW DELHI: Reliance Communications (RCOM) expects its high-margin enterprise business to post 24 per cent growth in revenue and a 28 per cent expansion in operating profit this financial year, spurred by new product launches and strong demand from customers in sectors like banking, financial services as well as information technology and related services.

“We hope to get a third of the incremental market share this fiscal,” Deepak Khanna, chief executive of the company’s domestic enterprise business, told ET. He expects the segment’s revenue to double in the next three years, given the potential of the market, which is currently worth $4 billion (Rs 24,000 crore).

Enterprise business, or the business of providing communication services to companies, generated about 12 per cent, or Rs 2,600 crore, of RCOM’s revenue of Rs 22,321.3 crore in the fiscal year ended March 31.

The company is India's fourth largest mobile phone operator and its enterprise business customers include HDFC Bank, Hindustan Unilever, Wipro, Infosys, ICICI Bank, Axis Bank, Citibank, Asian Paints and the BSE.

Khanna, who joined in September, said RCOM has recently launched four products for enterprises – a cloudbased storage service called Arch Store, video surveillance services on cloud, wireless Internet using CDMA and 3G base stations and insta-call.