Monday, July 15, 2024

Meganet Aims for Rs 1,000 Cr Revenue in 2 Years

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Computing hardware manufacturing firm Mega Networks, known as Meganet, is on track to reach Rs 1,000 Cr in revenue within the next two years, according to its founder and CEO, Amrish Pipada. In a recent interaction with PTI, Pipada shared insights about its aims and shared company growth strategies, expansion plans, and how it plans to leverage India’s growing AI server market and the Production Linked Incentive (PLI) scheme.

Meganet, which recorded a revenue of Rs 300 crore in FY24, is confident in its ability to achieve 30-40% revenue growth in FY25. Pipada highlighted the company’s aims of delivering high-quality products and services, investing in marketing and operational efficiency, and expanding into emerging technologies like semiconductor fabrication, immersion cooling technology, and AI servers as key drivers for this growth.

Last year, Meganet delivered between 5,000 and 6,000 servers. The company aims to increase this number to 8,000 servers in the current fiscal year. To support this growth, Meganet is investing approximately Rs 100 crore in a new state-of-the-art factory in Mumbai. This facility, expected to start operations by the end of the year, will initially produce 1,500 servers per month, enhancing the company’s production capabilities.

Meganet’s client base includes leading banks, insurance companies, media houses, healthcare providers, and government bodies. Notable private clients are Reliance and Tata, while major government clients include VSSC, DRDO, and ISRO. Additionally, Meganet exports to 56 countries, including the US, UAE, and various European nations.

With the rapid expansion of the Indian data centre market and increasing demand for AI servers, Meganet is strategically positioned to capitalize on these opportunities. The company is launching new AI servers equipped with powerful processors from Nvidia, Intel, and AMD, high-speed memory, advanced cooling, and scalable storage. These servers are optimized for AI workloads, deep learning, and data analytics, helping businesses and institutions accelerate innovation and decision-making.

Pipada also emphasized the positive impact of the government’s PLI scheme on Meganet’s growth. The scheme has enabled the company to enhance its manufacturing capabilities, boost global competitiveness, and significantly increase exports. Pipada expects export growth to potentially rise by more than 6-10% due to this support.

Looking ahead, Pipada is optimistic about the future, especially with initiatives like the India AI mission and Make in India driving the country’s tech industry forward. With these initiatives and government support, Meganet is well-positioned to achieve its ambitious revenue targets and continue its growth trajectory.

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