The Hindu Business Line : Avineon betting big on US, European clients

Hyderabad May 26 Engineering and geospatial technology solutions provider Avineon plans to invest up to $5 million (about Rs 22-24 crore) in Hyderabad centre and is set to open more overseas centres, including one in Dubai.

The President and Chief Executive Officer of Avineon, Mr Karlu Rambala, said that the company has a healthy order book and is close to entering into a major deal with a European engineering company.

It is in the process of forging a joint venture company to address engineering services for the European major from Hyderabad.

Addressing a press conference here on Saturday, Mr Rambala said that the company employs around 1,200 people. Of them, 150 work out of various overseas centres and the rest in Hyderabad.

As a part of the ongoing expansion plan, it is proposed to hike the Indian headcount to about 2,000 engineers before this year.

This growth is driven by recent big wins, including a multi-million dollar deal for oil and gas major in the US.

Formed in 1992, the closely held Avineon with headquarters near Washington now has revenues of $40 million. Given the current order book and the business potential in the engineering and geospatial areas, Mr Rambala said the company expects to hit revenues of $100 million within two years.

This is based on huge repeat orders from various US and European clients.

Talks with Govt

Apart from exploring the possibility of setting up centres in tier-II cities in the State, the company is in the process of negotiations with the State Government for setting up its campus.

Mr Rambala said the Chief Minister, Dr Y.S. Rajasekhara Reddy, has assured State Government support in acquiring land, during a recent meeting.

Apart from new centres in Dubai, and entering new regions, including Australia and New Zealand, the company may also consider the option of entering capital market with an IPO within two years, he said.