(Times of Update) — Indian digital network builder Black Box Ltd. is looking to nearly triple its sales to $2 billion over the next four years, betting on growing demand for data centers and cybersecurity services in its largest market, North America.
Times of Update’s most read articles
Black Box, controlled by Indian conglomerate Essar Group, will use acquisitions and leverage its partnerships with global players such as Juniper Networks Inc. and Aruba Networks to achieve that goal, Chief Executive Sanjeev Verma said in an interview.
The company seeks to capitalize on the global quest for artificial intelligence that is driving customers to invest in computing and data storage capabilities as well as associated network infrastructure and services. Working with its partners, Black Box is expanding its services to capture a larger share of this growing pie.
“We will acquire companies in the space in which we operate,” such as digital infrastructure, network integration, data center expertise or cybersecurity, Verma said. “We will acquire companies in markets where we can either gain scale or access to high-quality customers or talent.”
Black Box shares more than doubled in Mumbai last year, pushing its market capitalization above $1 billion. Essar Group acquired the Texas-based company in 2019. It now employs about 4,000 people and North America accounts for about 75% of its sales.
Black Box is open to exploring all options to raise capital to fund its expansion and purchases, Verma said. The company has received commitments to raise up to 4.1 billion rupees ($49 million) by issuing equity warrants, he said last month. The money will be used to fund hiring, growth and acquisitions, he said.
The company is facing some challenges, with some customers delaying IT spending because of high interest rates in the U.S., Verma said. Still, AI is pushing most companies to prioritize spending on network infrastructure in areas such as airports and cybersecurity.
“We see signs of progress on the horizon, with faster adoption of AI,” Verma said. “That means we need to rebuild the infrastructure to support these applications.”
Times of Update Businessweek’s Most Read Articles
©2024 Times of Update LP
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
