Japan's NTT sees India business to expand to $1 bn, commits investments

Japan's NTT sees India business to expand to $1 bn, commits investments

Japanese telecommunications main Nippon Telegraph and Telephone Corporation (NTT) is betting big on the India growth story as it consolidates its datacenter and information technology (IT) services portfolio in India. The Japanese tech giant intends to exceed $1 billion in sales in India.

The company recently raised its India bets by announcing an investment of $2.5 billion in Maharashtra over the next five years. With this, the total investment by the company touched $4.5 billion.

In 2019, NTT Data announced $2 billion in investments to be spent over five years, of which nearly $1.6 billion was across data centers, submarines, and renewable energy.

Abhijit Dubey, global chief executive officer, of NTT, on his maiden India visit, said India represents the highest growth in terms of geography for the services that NTT provides globally.

“India is the eighth largest in terms of revenue for NTT global business. India is in the vicinity to be a $1 billion business for us. Importantly, after Japan, India is the center where we have the largest employee base,” he added.

NTT - between its data center business and IT services - has 37,000 employees in India. The global headcount for this is 147,000. India is 3-5 percent of the $20-billion international business of NTT, which brings the numbers in the range of $700 million.

NTT Data is the largest data center services provider in the country and is the second largest player in the IT services segment. In the data centre segment, NTT Data’s market share is 22 percent.

Growth driver

The company currently has 11 operational data centers, with six more to be added and three under construction. Edge will be the next growth frontier for NTT. The company is also coming up with Edge data centers in cities like Kolkata, Pune, Nagpur, and Lucknow.

“The demand for data center services has been increasing. Nearly 70 percent of the capacity of these data centers has already been pre-booked,” added Sharad Sanghi, managing director, of NTT India.

In an important development, the company said that by the end of this year, India will have a submarine cable, called Mist, which will land in Mumbai and Chennai and will connect data centers in India to Myanmar, Singapore, and Malaysia.

“This is for the first time that a marine cable landing station will be at a data center too,” said Dubey.