Black Box targets $1 bn revenue by next fiscal, buoyed by rising demand

Black Box, a digital infrastructure provider listed on the Indian stock exchanges, aims to achieve consolidated revenues of $1 billion by the next financial year, buoyed by rising demand from US-based clients. A subsidiary of the Essar group, Black Box has a strong foothold in North America and is increasingly focusing on digitisation alongside energy transition.

The company recently established a centre of excellence in Bengaluru to bolster its global operations. Equipped with state-of-the-art research and development laboratories, command centres, and a service desk, the Bengaluru centre aims to meet the specific needs of its clients. Black Box also plans to expand its Indian workforce by hiring an additional 500 employees.

On Wednesday, shares of Black Box closed at Rs 204, giving the company a total valuation of Rs 3,427 crore.

“Whether in India or globally, we are targeting companies that require digital infrastructure,” said Sanjeev Verma, Chief Executive Officer of Black Box Corporation. The firm is set to conclude the current financial year with revenues of Rs 7,000 crore and has plans to broaden its global reach by opening offices in multiple countries.

With growing data storage needs from major technology companies such as Meta, Microsoft, and the newly renamed Twitter, known as X, Verma revealed that more data centres are likely to be established globally. Black Box aims to facilitate this expansion by providing the necessary digital infrastructure. Notably, 80 per cent of the company’s revenues are generated from the United States, where a significant portion of its workforce is based, particularly in Dallas, Texas.

“The US remains our largest market, similar to many other technology firms. However, unlike them, a large number of our employees are based in the United States to cater to our clientele there. We plan to augment our workforce in India in the future as we anticipate achieving double-digit growth, supported by a strong backlog and pipeline,” Verma added.

In the United States, Black Box offers a range of services including managed extended detection and response, endpoint detection and response, and vulnerability management-as-a-service.