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