Reliance Communications appoints Deepak Khanna as CEO for local enterprise business

KOLKATA: Reliance CommunicationsBSE 2.61 % has appointed Deepak Khanna as chief executive officer of its domestic enterprise business, which generates nearly a 10th of the company's overall annual revenue. 

Prior to joining India's third largest mobile phone operator, Khanna was joint CEO of
Tulip TelecomBSE -1.72 %. 

Khanna's entry in RCOM's leadership team comes at a time when mobile phone companies, including RCOM, have seen improved business fundamentals amid higher call charges and data revenues. Senior RCOM executives claim the domestic "enterprise space is one of the most lucrative businesses" for the company, generating nearly Rs 2,200 crore of revenue annually. 

The domestic enterprise vertical is essentially RCOM's corporate customer business in India and is considered a high margin operation since companies shell out higher sums for managed services compared with retail customers. 

Apart from handling voice and data connectivity requirements of key corporates and banks, RCOM also manages their data centre service needs. 

Punit Garg, president and CEO of RCOM's global enterprise business unit, said "the company's India enterprise business is slated to record 30% compounded annual growth rate over the next five years". 

Some of RCOM's biggest enterprise business customers are 
HDFC BankBSE 1.24 %,Hindustan UnileverBSE -1.62 %, WiproBSE 0.01 %, InfosysBSE 0.60 %, ICICI BankBSE 7.37 %,Axis BankBSE 2.80 %, Citibank, Asian PaintsBSE 4.44 % and the Bombay Stock Exchange. 

Higher cash-flow projections from the domestic enterprise business come at a time when RCOM is looking at data and GSM voice services for future growth. 

The Anil Ambani-promoted telecom company plans to increase revenue from GSM voice and data services to 80% of total income in a year, from about 67% now. 

Three years ago, RCOM had restructured its corporate customer business by integrating its India enterprise unit with its global operations under the Reliance Globalcom BV fold. RCOM, however, has lately been in talks to sell stakes in Reliance Globalcom BV, its whollyowned wholesale telecommunications unit, although there is no deal yet.