Indian Rayon buys Transworks
By Our Corporate Bureau | 23 Jun 2003
Mumbai: Indian Rayon, a flagship company of the Aditya Birla group (www.adityabirla.com), has announced its entry today into the business process outsourcing (BPO) sector with the acquisition of TransWorks, a leading Indian IT-enabled services / BPO company.
Says Kumar Mangalam Birla, chairman of the group: "We are excited by the potential of the BPO sector and are very pleased to have TransWorks joining the group. This acquisition will also synergise, support and leverage Indian Rayon's existing thrust in the IT services sector in particular and the services sector in general."
TransWorks has delivery centres in Mumbai and Bangalore. It is the world's first COPC (Release 3.2) certified company. The company has offshoring contracts with well-known businesses in North America and the UK, including several Fortune 100 clients.
TransWorks was funded by the renowned venture capital firm ChrysCapital, founded by Rizwan Kotia and Jagdish Moorjani, and has a strong management team led by the CEO, Prakaash Gurbaxani. The company has a current revenue run rate close to $1 million per month and employs approximately 1,000.
Aditya Birla group director Sanjeev Aga emphasises the group's resolve to create a large, healthy BPO business over the next five years. "Our aspiration is three-fold: to become a leading BPO player, to provide superior returns to shareholders and to add true value to clients through superior, distinctive, and dependable services."
While this acquisition gives Indian Rayon a running start into the BPO sector, TransWorks will benefit from the Aditya Birla group's financial depth, professional excellence, and strong relationship with potential BPO customers. The Aditya Birla group operates in 18 countries and has alliances and partnerships with renowned international companies.
The transaction will provide Indian Rayon 100-per cent shareholding in TransWorks, for a total consideration of up to approximately $13 million based on milestones, and is subject to requisite regulatory approvals. ChrysCapital owns about 80 per cent of the paid-up share capital of the company, while the rest is held by the founders.
The Indian BPO sector is growing at a 60 per cent clip annually, and is believed to have crossed the $2.5-billion mark. Building upon the platform and process capabilities already created, the entry of Indian Rayon is expected to propel TransWorks into a higher growth trajectory among the best Indian BPO players.
