Black Box Eyes New Growth Horizon with Data Center Focus

Black Box, a digital infrastructure integrator under Essar Group, is set for its next growth phase despite muted sales in FY24. The company is focusing on data centers and advanced networking solutions, modifying its market approach to concentrate on profitable clients and regions, primarily in North America and India.

Black Box, a prominent player in digital infrastructure, is gearing up for the next phase of growth, leveraging an expanding deal pipeline, a refreshed go-to-market approach, and a keen focus on data centers, a recent report by Ventura Securities reveals.

As part of its strategic overhaul, Black Box, an Essar Group subsidiary, is streamlining its customer base to focus primarily on its top 300 clients, while stepping away from less profitable accounts. This shift aims to enhance margin growth and make Black Box a significant player in the data center market in India and North America.

With data centers forming a substantial portion of its revenue, the company foresees a substantial uptick in contributions from this sector. Black Box is set to benefit from significant investments by major players like Meta and Amazon in data center expansions, with Indian market opportunities particularly robust.

(With inputs from agencies.)