Cast­ing a wider net

Delhi-based MK In­fos­ys­tems has built strong spe­cial­iza­tion in phys­i­cal se­cu­rity, BMS and elec­tri­cal so­lu­tions

CRN - - COVER STORY - — Amit Singh

New Delhi-based MK In­fos­ys­tems de­cided to change its busi­ness out­look and strat­egy in 2010 when it re­al­ized that its core busi­ness of net­work in­te­gra­tion was grow­ing in the sin­gle dig­its and not of­fer­ing ad­e­quate mar­gins and growth op­por­tu­ni­ties.

Ex­plains Manoj Bisht, CEO, MK In­fos­ys­tems, “From the be­gin­ning we were fo­cused on net­work in­te­gra­tion and struc­tured cabling de­ploy­ments, but we slowly re­al­ized that fo­cus­ing on mere net­work­ing would not bring in sus­tained rev­enue and mar­gins. As a re­sult, in 2010, we de­cided to move into sur­veil­lance. In 2012, we added so­lu­tions such as ac­cess con­trol, fire and smoke de­tec­tion, and tem­per­a­ture con­trol, to de­velop our build­ing man­age­ment sys­tems (BMS) port­fo­lio.”

Bisht also re­al­ized that elec­tri­cal wiring and pan­el­ing form a large chunk of a data cen­ter (DC) projects. “In a 1,000 sq ft DC, if the struc­tured cabling cost is ` 30 lakh, the elec­tri­cal com­po­nent is ` 70 lakh. That’s too big a pie for any­one to miss, hence we formed a team of 11 en­gi­neers for elec­tri­cal so­lu­tions; this tripled the ticket size of many of our projects.”

MK In­fos­ys­tems has seen its rev­enue from sub-con­tracts rise. For in­stance, for a DC project de­ployed by Wipro for Bharti, it was sub-let ` 2.4 crore of elec­tri­cal sys­tems de­ploy­ment. For an­other DC project Wipro sub-con­tracted the com­pany to de­ploy a BMS so­lu­tion worth ` 2.7 crore. MK In­fos­ys­tems has also de­ployed a BMS and bio­met­ric sur­veil­lance so­lu­tion worth ` 12 crore for the union Home Min­istry.

Bisht says that the fo­cus on new ar­eas has helped MK to fight the slow­down and mar­gin pres­sure in the pure­play net­work in­te­gra­tion busi­ness. “This fis­cal our topline will grow 20 per­cent to ` 25 crore. Our net­work busi­ness has grown in the sin­gle dig­its while the new businesses have pro­vided us strong growth of 45-50 per­cent.”

MK plans to trans­form it­self into a BMS and sur­veil­lance so­lu­tions provider in the next two years. “We ex­pect BMS and sur­veil­lance to con­trib­ute 50 per­cent of our rev­enue in 2015, while the elec­tri­cal so­lu­tions busi­ness should con­trib­ute 20-25 per­cent,” says Bisht.

In a 1,000 sq ft DC, if the struc­tured cabling cost is ` 30 lakh, the elec­tric cabling and pan­el­ing com­po­nent is ` 70 lakh. That’s too big a pie for any­one to miss


CEO, MK In­fos­ys­tems

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