BLS International Targets Around 20–25% Growth Over Five Years
Pricing improvement, government-outsourcing initiatives and the visa consulting services provider's focus on strategic acquisitions will help the company deliver the projected targets.
BLS International Services Ltd. expects a 20–25% growth annually over the next five years, backed by strong market expansion and strategic acquisitions.
The visa consulting services provider is poised to achieve the growth target due to outsourcing by governments, rising fees and the improved industry environment, according to Joint Managing Director Shikhar Aggarwal.
"I think there's a big scope for growth in terms of market share. Even the market, as I said, is growing by more than 14% every year," he said in an interview with NDTV Profit on Wednesday.
"On top of that, governments are outsourcing newer things. Our prices are increasing. So, definitely we feel with the increased base also, that we can deliver at least 20–25% growth over the next five years," Aggarwal said.
Aggarwal outlined that the company already renewed 90% of its contracts. It is optimistic about a clear revenue-growth roadmap due to these contract renewals, some of which even expand up to 10 years.
"There are upwards of $1 billion in tenders coming up... wherein our competitors are the incumbents. Regarding our revenue, we have already renewed most of our contracts, so we have clear visibility for the next five to seven years….at least some of the contracts we run are for 10 years," he noted.
Pricing improvement, government outsourcing initiatives and BLS International's focus on strategic acquisitions will help the company deliver its projected targets. BLS has over Rs 900 crore in net cash, according to Aggarwal.
"We continue to look at different acquisitions, which can be synergised within our company. So definitely, we feel that the guidance is quite reasonable. But definitely on top of that, newer contracts, acquisition... we will be striving for more," he said.
On the growth outlook, he said BLS International currently holds a 17% market share in the industry, which has witnessed around 14% growth.
"By 2029, it is expected to become a $3.5-billion industry. That is why we see a major growth for us coming in," he said, noting that BLS International witnessed "steady growth in volumes" over the last five years.
