Home BusinessZylog to invest Rs 210 cr on Wi-Fi; aims Rs 550 cr revenue
Global Software Solutions company Zylog Systems is planning to invest Rs 210 crore on Wi-Fi infrastructure for providing wireless broadband and Voice over Internet Protocol (VoIP) services and aims to garner Rs 550-crore revenue from this over the next 5 years.
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"We will be investing a sum of Rs 210 crore on creating Wi-Fi infrastructure in a bid to provide wireless broadband services in 100 key cities within the next two years. Along with it we will also offer VoIP services to our customers" Company"s Managing Director Ram Sesharathnam told reporters here today.
Aiming to create wireless broadband customer base of one lakh a year, the company is expecting revenue of Rs 550 crore from the Wi-Fi space in the next five years. "In the first year of operations we will look at a revenue of Rs 60 crore and in the next five years it should reach Rs 550 crore," he said.
The Chennai-based company would also explore the possibility of offering wireless broadband services to South Asian countries including Sri Lanka, Nepal, Malaysia.
Zylog has already launched Wi-Fi services in Chennai and would look at Tier II and III cities for expanding its service network. It is currently offering VoIP in Tamil Nadu, Gujarat and Punjab and would soon offer these services in Hyderabad, Bangalore, Mumbai and Pune.
The company is betting big on e-governance projects across the country for deriving growth from the domestic market. "There is an immense potential in government owned projects and we would like to capitalise on the same by providing our solutions," he said.
Currently, the company is handling the smart-card project for vehicle licenses for the states of Karnataka and Gujarat.
To expand its business in the overseas market, Zylog has acquired two US-based software development companies at a sum of Rs 100 crore.
The company, which attained a turnover of Rs 783 crore in 2008-09 is eyeing growth of 30-35 per cent in the current fiscal.
Zylog Systems provides services to enterprises and technology companies across the globe. It offers a range of IT products and solutions to multiple verticals like banking, insurance and telecom.