Sify’s new CEO Raju Vegesna making the right moves
Raju Vegesna, the new CEO of Sify Ltd. (Nasdaq: SIFY) is making all the right moves so far. Let’s look at some of things he’s done since taking over as the CEO:
- He won’t be paid for his CEO gig (Content Sutra). Since he owns about 42% of the company his success is aligned with the shareholders.
- He has repeatedly mentioned that the company will look at opportunities internationally. Remote Infrastructure management is one area where Sify can really capitalize in the US. A lot of potential for opportunities in the US which the old management team never targeted to its full potential.
- Sify is profitable now and I like the fact that Raju has repeatedly mentioned that Sify will continue to grow and expand but not at the expense of profits. There is no reason Sify should not be profitable.
- Sify has always been a unknown stock/company in the Unites States when compared to other Indian companies such as competitor Rediff.com (Nasdaq: REDF). The old management didn’t really do a good job of promoting the company. So far Raju Vegesna has already given a Video interview to the ‘TheStreet.com’. Hopefully, we will see more exposure in the future.
- Being a native Indian and having a successful and vast corporate America experience will only help Sify grow domestically and globally. He was the founder of ServerWorks which he later sold to Broadcom for $975 million.
Following is from Chairman’s Letter to shareholders from a recent SEC filing:
Sify today is a good company, with three strong business units, solid revenue growth, and recent achievement of net profitability. But late last year, when I paid approximately USD $100 Million (approximately USD $37 million of which went directly to Sify through expansion of equity) for approximately 42% of Sify’s stock, I was not buying “Sify today”! I was buying into “Sify tomorrow,” the Sify that I envisioned might come to be. And now, as Chairman of the Board, and CEO of Sify, I am pleased to join with the rest of Sify’s management team in an effort to make this vision come true.
Sify is also making all the right moves in its Web portal business. However, I’ll leave that for another day. The current quarter is the first quarter under Raju’s leadership and I can’t wait to see the results. Although, it would be too early to judge we should see some signs of the changes under him.
Full Disclosure: I am long Sify.
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