(Bloomberg) — Cyient Ltd., an Indian engineering and technology solutions provider to more than two dozen Fortune 500-companies, is expecting its largest-ever acquisition to help expand its offerings and cut dependence on key aerospace sector clients, the company’s chief executive officer said.
Earlier Monday, the company based in the southern Indian tech hub of Hyderabad, announced it has signed definitive agreements to acquire Finland-based plant and product engineering services company Citec Group for an enterprise value of 94 million euros ($101 million) to expand into Europe.
“Some of the cyclicity has indeed hurt us, especially our dependence for example on the aerospace sector,” Cyient CEO Krishna Bodanapu told Bloomberg Television’s Haslinda Amin and Yvonne Man in an interview Monday. “We wanted to look at areas which could really help us buffer that cyclicity and also help us grow in industries that are growing.”
The aerospace sector, which includes clients such as Boeing Co., is Cyient’s biggest revenue earner.
Bodanapu also said Russia’s invasion of Ukraine will reset supply chains and demand, which in turn presents a “great opportunity”.
“The energy sources are going to change, the energy demand is going to look very different. So I think those provide very very good opportunities,” he said.
Cyient will, however, not have a direct business relationship with Russia, he added.
The company, which last week reported revenues of 45.34 billion rupees ($591 million) in the fiscal year to end-March 2022, has forecast a revenue growth of between 13% and 15% in the current financial year, despite worries that the COVID-19-driven boost may wane.
“We’re a relatively small company in a very very large market. So, if you look at the specifics in terms of our markets, our clients and what we do, we see some very good growth opportunities,” Bodanapu said.
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