AV Birla buys TransWorks
for $13 M

By SiliconIndia   |   Monday, 23 June 2003, 07:00 Hrs
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ChrysCapital-funded TransWorks has been acquired by Indian Rayon, an AV Birla Group company. The acquisition, worth $13 million, gives the company a lead into the BPO segment.

MUMBAI: ChrysCapital holds 80 percent stake and has induced about $10 million, raised in two rounds, into TransWorks. The remaining 20 percent, held by the founders- Rizwan Kotia and Jagdish Moorjani, have sold their stake while continuing to be part of the company.

TransWorks expects to benefit from the Aditya Birla group`s financial depth and potential BPO customers.

According to officials, the transaction is subject to requisite regulatory approvals. "This acquisition will synergise, support and leverage Indian Rayon's existing thrust in the IT services sector in particular, and the services sector in general," said Kumar Mangalam Birla, chairman of the group.

TransWorks has delivery centres in Mumbai and Bangalore with a combined seat strength of 1,000. It plans to add more than 400 seats by the year end between the two operational centers. The company has offshoring contracts with businesses in North America and the UK, including several Fortune 100 clients.

Sanjeev Aga, the Aditya Birla group director, emphasized 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."

Prakash Gurbaxani, CEO, Transworks, commented, "TransWorks has grown from 200 people to about 1200 people over the last 18 months. The competitive landscape in the BPO market place has changed rapidly over the past 12 months and as part of the Aditya Birla Group we are now well positioned to continue to build TransWroks into a world class BPO player."

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