EXL Service scouting for Rs 100-250 cr buyouts in India
Nasdaq-listed EXL Service Holdings is eyeing buyouts in India in the range of $20-50 million (Rs 100-250 crore), to strengthen its presence in the country.business Updated: Feb 29, 2012 23:06 IST
Nasdaq-listed EXL Service Holdings is eyeing buyouts in India in the range of $20-50 million (Rs 100-250 crore), to strengthen its presence in the country. The company, however, says that the acquisition pie could even be bigger for a target company that is a "strategic fit".
"We expect to grow annually by around 30%, wherein 10% growth will come by inorganic route through acquisitions," Rohit Kapoor, president and CEO, EXLService Holdings, told Hindustan Times.
The acquisitions would be aimed at adding capabilities in the BFSI (banking, financial services and insurance) and analytics (data crunching to offer insights to client companies) space, he added.
"Apart from right and attractive valuations the target company should be a cultural and strategic fit for us," Kapoor said, without divulging further details.
EXL Service is also spreading its services to smaller cities in India. The company expects to have more centres at Pune and Kochi during the current calendar year.
"Our experience at tier-II cities has been very good and we expect to strengthen our presence in these cities," said Kapoor. The company already has its centres at Pune, Kochi and Jaipur.
At present, EXLService garners close to 70% of its revenue from its US-based client firms while remaining 30% come from European companies that outsource work. And it is these outsourced jobs that are performed at EXL centres in India. However, Kapoor also said that outsourced jobs are no leftovers.
"We have some of the best domain experts who hail from prestigious colleges across India. Around 50 of our employees are from the IIMs." he explained.
During 2011, the company's revenues stood at $360 million (Rs 1,760 crore) that was up by 46% year-on-year. For 2012, the company expects its revenues to be in the range of $445 million (Rs 2,100 crore) to $455 million (Rs 2,200 crore).