US and India biggest growth markets for the company, says Sanjeev Verma
Black Box, a digital infrastructure firm listed on the BSE, seeks $2 billion in revenue within three to four years by expanding in the United States (US) and India,, said its chief executive officer Sanjeev Verma in an email interview.
Growth will come from the world’s rapid adoption of artificial intelligence (AI), demand for stringent data governance, and the need to improve user experience. “These factors are driving the rise of edge computing, which is central to this expansion,” Verma said, referring to a distributed computing framework that enables data to be processed closer to where it is created.
“Over the next three to five years, North America and India are expected to experience the most significant growth in digital infrastructure. In North America, especially the US, data centre capacity is projected to exceed 5,000 megawatts (MW),” Verma said.
India’s data centre capacity is expected to reach 3,000 MW over the years, fuelled by rising internet penetration and expansion of digital services. “Besides the momentum towards edge computing, better data management is playing a crucial role in this development. Both regions are poised for impressive advancements in digital infrastructure, driven by these dynamic factors and the accelerating pace of technological innovation,” Verma said.
Verma said while a recession in the US may impact markets, Black Box can handle such challenges. “Our recent successes, such as securing high-profile clients and partnering with a major Fortune 500 company, underscore our resilience and adaptability in the face of economic uncertainty. This reflects our robust presence in the US market and our ability to navigate through tough times,” Verma said.
The company gets 85 per cent of its revenue through global solution integration, which includes services such as data centre solutions, connectivity, network solutions, modern workplace setups, and cybersecurity. The rest of the revenue comes from technology products and solutions like contract-manufactured items, control rooms, audiovisual systems, and keyboard-video-mouse switches for the broadcasting industry.
“The company’s growth in data is driven by increased internet usage, IoT (internet of things) proliferation and big data analytics. Additionally, the rise of Cloud computing, digital transformation across industries, and the surge in remote working and online services are fuelling demand for robust data centre infrastructure.”
“The advent of edge computing and the rollout of 5G (fifth generation) based wireless telephony further amplify the need for localised and scalable data centres, while more stringent data sovereignty regulations drive investment in compliant facilities,” Verma said.
“The influx of capital from both traditional and new investors, combined with a focus on sustainability and green technologies, positions us to capitalise on the burgeoning data center market and drive innovation in this sector.”
India’s digital market boom is driven by economic, technological, and policy factors. “The expansion of the digital economy, characterised by increased internet penetration and improved connectivity in rural areas, is broadening the user base. Additionally, the surge in e-commerce and fintech is elevating demand for advanced data management and secure communication infrastructure. Besides the government initiatives like the Digital India programme and the Smart Cities Mission are further accelerating this growth by focusing on digitising services and enhancing urban infrastructure.”
Verma said the company’s focus is on leveraging the recent infusion of Rs 400 crore by promoters to drive organic growth and meet its short-term objectives. It will look at other fundraising when needed.
Source: Business Standard
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