UBICS Inc, the Pittsburgh based IT services division of the Rs 4,000 crore (Rs 40 billion) UB Group, has announced expansion plans for making India a strategic centre for its global initiatives.
As part of the initiative, the Company will invest close to Rs 5 crore (Rs 50 million) primarily on R&D during the first year of its operations in the country (2005-06).
This expansion plans comes close on the heels of UBICS acquiring two US-based companies Integral Strategies and Ventive offering IT services and web-based enterprise solutions, respectively.
In India, UBICS will operate through its centres in Pune, Bangalore and New Delhi. The first batch of recruitment will see an addition of over 300 professionals to support local practices and global activities in India.
The Pune centre will become operational by May 2005 and house over 200 personnel. The company currently has around 250 professionals, mostly in the US.
In addition to these plans, UBICS is looking at a host of options such as taking the company private, accessing private equity to fund both organic and inorganic growth.
UBICS was recently delisted from Nasdaq after its stock was trading for less that $1 for a sustained period and currently the stock is traded at the OTC exchange. The promoters own 66 per cent of the company and the rest is with the public.
UBICS under its new plans expects a revenue growth of 150 per cent over the next four years to $75 million, of which 50 per cent will be contributed by the company's Indian operations. Currently, the US market accounts for the Company's majority earnings.
According to a spokesman, it is expecting to close at $29 million for 2005 and a PBT of around 25 per cent.
