The Hindu : Business : NeST group targets $1-billion enterprise value

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Thursday, Aug 17, 2006

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Business

NeST group targets $1-billion enterprise value

Special Correspondent

Unveils global expansion plans

Kochi: The Aluva-based NeST group has drawn up a blueprint to achieve an enterprise value exceeding $1 billion in the next three years. The group is holding a global meet in Kochi to draw up future plans and take stock of the situation.

Addressing a press conference during a break in the course of the global meet here on Wednesday, NeST group chairman Javad Hassan said the technology-based company was all set for exponential growth and was on the verge of achieving the tipping point, the main focus of which would be on strategic partnership with customers. From the present $200 million, the company is envisaging a growth to the tune of $1 billion.

According to Mr. Hassan, the company, with a workforce of over 3,000, has over the last one-and-a-half decades, nurtured world-class technical capabilities including electronics manufacturing, photonics, engineering design and software development.

"These capabilities allow NeST to deliver complete end-to-end high-tech products and system solutions, providing a solid platform for growth,'' he said. In 2006, the group more than doubled its manufacturing capacity in Kerala and other States, acquired businesses internationally to further expand its technical capabilities and added many new customers, said N. Jehangir, vice-chairman and managing director of the group.

Answering a query, Mr. Hassan said that in order to support its planned growth, the group had adopted a new organisational strategy and was adding new senior executives.

The new organisation is designed to facilitate rapid growth in the group's four-target markets of health care, communications, industrial and transportation. Global business executives will be assigned to lead the group's efforts in each of these markets. Selling and support organisations are being expanded in the Americas, Europe, the Middle East, Japan and the Far East, and India, Mr. Hassan said.

Asked about investments for the expansion, Mr. Hassan said there were plans to allow private equity partnership to the tune of 10 to 15 per cent and to allow more equity participation in public market (that is going for a public issue) during the next 12 to 18 months. Tapping investment funds through several means including GDRs was being contemplated.

Asked about the VLSI proejct at Vypeen, Mr. Jehangir said that uncertainties were delaying it.

It was a mega project needing investments to the tune of $5,000 billion. However, NeST was positive about all the projects though the response from the authorities seemed to be lukewarm, he added.

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