Nelito Systems, in which Japan's DTS Corporation owns a majority stake, is aiming to more than double its revenues to Rs 200 crore by the end of this decade, betting on the country's digital push. Besides, the company, which provides software solutions to co-operative banks, is looking to offer its IT services outside the country too.
Punit Jain, CEO of Nelito Systems, said that the Indian government's push for technology products to develop the banking system in the rural areas will augment the company's revenues. In fiscal 2016, Nelito reported an operating profit of Rs 6 crore on revenues of Rs 88 crore. Jain added that the company will leverage on DTS Corporation's network to cater to the US and South East Asian markets. He projected that these markets will contribute 20% to overall revenues by 2020.
DTS holds 44.5% stake in Nelito, which started as an IT division of Nelco, a Tata Group company, and became a separate entity in 1995. The Japanese company had acquired the stake from Nelco, Af-Taab Investment (arms of Tata Power) and Sunnynook (a unit of private equity capital firm Intrepid) last month. Tata Power Group reduced its interests in Nelito as it was a small and non-core business for the electricity generator which is currently struggling with its loss-making Mundra plant.
Nelco and Af-Taab Investment now holds 9.95% and 12.30% in Nelito while Sunnynook, co-owned by Cyrus Vandrevala, son of former Tata Power MD Firdose Vandrevala, owns 22.25%.
Sunnynook had bought Nelito's shares from Itochu, a Japanese company, in the early 2000s. Cyrus' younger brother Jerxis Vandrevala and Kersi Gherda, former Tata Power MD, represent Sunnynook on the board of Nelito while P J Nath and Sanjay Dube represent Nelco and Af-Taab respectively. DTS has three members on the board of Nelito.