Our Kolkata Bureau

Kolkata, October 16

ITC INFOTECH India Ltd (I3L) plans to sharply cut down its business dependence on parent ITC Ltd, which happens to be its single-largest client, accounting for 32 per cent of annual revenues. ITC Infotech India is a wholly-owned subsidiary of lTC Ltd.

ITC Intotech India CEO & managing director Sanjay Verma declined to give out I3L financials. "I cannot divulge revenue numbers ...but I3L does not like single-client dependence. Over the next two years, we expect our share of annual revenues from ITC to drop to below 10 per cent from the present level of 32 per cent," said Mr. Verma. He, however, clarified that ITC will continue to remain I3L's largest client in India.

While I3L's revenues in fiscal 2000-01 stood at nearly Rs 60 crore, they are projected to exceed Rs 100 crore in fiscal 2001-02, according to market sources.

Be that as it may. Mr Verma envisages significant changes in I3L' s revenue mix once it achieves greater market penetration across the Asia-Pacific (APAC) region.

"The APAC bloc now accounts for a modest 3-4 per cent of I3L's total
revenues. We expect that to grow to nearly 18 per cent over the next nine months," he said.

I3L is stepping up its presence across key Asia-Pacific markets, especially in
the light of the protracted US slowdown. "ITC Infotech wlll set up new business development organisations in Singapore, Malaysia, Japan and  Australia in the coming months", he said.

Mr Verma said the US slowdown has had little impact on I3L's revenue streams. "The bulk of our IT services revenues emanate from Europe but we now believe the markets across Asia-Pacific will propel future growth", he said.

But he was quick to note that I3L will continue to step up investments in the US through its wholly-owned US subsidiary ITC Infotech (US) Inc (12A). "We have not put on hold any of our US investment decisions despite the economic downturn. We will reinforce our business development centre in New Jersey and set up a new one in Denver", he said.

Significantly, I3L intends to radically expand its technical manpower base across its operations in India, the US and the UK, with 400 recruitments planned in 2001 alone. At present, I3L has two 100 per cent offshore subsidiaries in the US and UK. Its UK subsidiary has been christened 12B.

It may be recalled the UK and US operations were originally subsidiaries of parent ITC Ltd. They were subsequently acquired by I3L as part of the restructuring of ITC's IT business. In fact, ITC sold all its IT-related assets for Rs. 18 crore and transferred its IT employee pool to I3L.