Ventech Solutions has India expansion on cards

CHENNAI: Ventech Solutions, US based software firm, is to set up a 1000 seater offshore development centre in Chennai, as a part of its plans to expand its operations in India.

Mr Ravi Kunduru, Chairman and CEO, Ventech told reporters in Chennai on Thursday that the company would invest Rs 7 crore in the first phase, and Rs 33 crore in the second and third phases. Once completed, the centre would be 100,000 sqft large and accommodate 1000 people, he said.

The company would also look at setting up centres in Hyderabad and Bangalore in the next two years. The expansion would be partly funded by internal accruals. "We also have commitments from a financial institution to fund our expansion till our initial public offering. We plan to go for an IPO by October 2008 to raise $100 million," he said.

The system integration services company catering to education, manufacturing and technology domains reported a revenue of Rs 40 crore in 2006, 70% of it coming from services, 20 from solutions and the rest from products. It currently employs 125 people in Chennai and another 125 in the US.

"We will be growing to 400 people, with 250 in Chennai and 150 in US by 2007. Our plan is to ramp up our headcount to 1000 employees by December 2008. That growth would also be driven by acquisitions," Mr Kunduru said.

The company expects to make two acquisitions by March 2007 - one in Ohio, US and the other in Hyderabad, India, he added. The company expects the acquisitions together to add $10 million to its topline.