The Hindu Business Line : New Sify chief bets on IMS, learning

Mr Raju Vegesna, Chairman of the Board of Sify Ltd, a Chennai-based Internet, network and e-commerce services company, recently replaced Mr R. Ramaraj as the company's Managing Director and CEO. Mr Ramaraj resigned from the posts to pursue other interests and opportunities. Mr Vegesna brings to the company his Silicon Valley experience.

It may be recalled that in November last year Satyam Computer sold its entire stake of 31.61 per cent in Sify to Infinity Capital Ventures, a company controlled by Mr Vegesna - Infinity now controls 42 per cent of Sify. The deal fetched Satyam $62.6 million.

In an e-mail response from the US to Business Line, Mr Vegesna discussed the exit of Mr Ramaraj and other issues concerning the company. Excerpts from the interview:

Would the exit of Mr Ramaraj and a couple of others impact the company's future performance?

We invested in the company based on the quality of its people, processes, capabilities and technological skills and wanted to be directly involved in growing the company. Mr Ramaraj and the management team have done a tremendous job in developing Sify from inception to what it is today. So I can certainly understand Mr Ramaraj's wish to do something independently given his experience and capabilities. At the end of the day, these are individual choices that I do not think anyone can explain. However, Sify is now an institution with mature processes, systems and has width and depth of management across businesses and technology. We will focus on ensuring customer satisfaction and growing the business.

What's the agenda for the new management?

I have taken over as the CEO and Managing Director and will continue to hold this position. We will soon have a Chief Operating Officer who comes with experience in business development, change management and human resource management.

What kind of restructuring is likely to happen in the organisation?

It is business as usual at Sify across our key lines of business. While we will continue to focus on growing each of our businesses in India , a key strategic thrust will be our international services that includes learning and infrastructure managed services (IMS). IMS is a sunrise sector where we have unique skills and processes that give us an advantage. To meet the growing demand for such services we recently opened our third data centre in Bangalore. We will continue to invest in infrastructure, skills, processes and people, and will also look at other avenues for growth such as acquisitions.

We will also seriously look at taking international the unique technology and processes we have used to build the iWay cyber café chain to countries with a similar low PC penetration profile. The future is exciting with growth opportunities for Sify in India and overseas.

Could you spell out some of the new initiatives?

We have initiated a technology advisory board comprising people with experience from both India and abroad to add to our perspectives, and to contribute to strategies that will enable us to retain our cutting edge in data network technologies. Mr Shyam Byra and Mr S. Bhaskar, who have years of industry experience and business leadership in India and in the US, have been invited to be on the board. As Sify has both width and depth of management skills and experience across businesses and in its key technology division, we are also looking for leadership from within the company wherever needed.

How are you going to leverage the huge network of 1,000 plus iWays?

We are working towards making them points of distribution for electronic services from where people can do online ticketing, travel arrangements and e-commerce. The idea is to provide multiple online benefits beyond basic browsing.

Sify has been an India-focused company. When do you plan to go international?

We went international a while ago with our IMS services. We are now accelerating the growth of this business. Do you feel it is time for an India listing given the size of the company?

Infinity Capital owns 42 per cent of Sify, and our intention is to grow the value of the company over time. I believe the opportunities before Sify in India and overseas are huge, and now is the time to capitalise on these opportunities. However, there is no immediate imperative to raise further funds at this time as we have adequate cash reserves to cater to our growth plans at this time.

What is your comment on Sify being acquired by potential buyers even as there are rumours that an American company is looking to buy the company?

Our intention is to grow the value of the company over time as I believe the opportunities before Sify in India and overseas are huge.