The Telegraph
Since 1st March, 1999
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Indian Rayon takes the BPO plunge

Mumbai, June 20: Indian Rayon, an Aditya Birla group company, today announced its entry into the business process outsourcing sector with the acquisition of TransWorks for about Rs 60.4 crore.

The transaction will provide Indian Rayon 100 per cent shareholding in TransWorks.

TransWorks, a leading BPO company in India, has delivery centres in Mumbai and Bangalore. The company has off-shoring contracts with various businesses in North America and the UK. TransWorks was funded by ChrysCapital, the venture capital firm founded by Rizwan Kotia and Jagdish Moorjani.

The firm owns about 80 per cent of the paid-up share capital of the company with the rest being held by its founders. TransWorks has a current revenue run rate close to $ 1 million per month and has around 1000 employees. While this acquisition gives Indian Rayon a running start into the BPO segment, TransWorks will benefit from AV Birla group’s financial depth and strong relationship with potential BPO customers, a statement issued by Indian Rayon said.

AV Birla group chairman Kumar Mangalam Birla said, “We are excited by the potential of the BPO sector. 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.”

Sanjeev Aga, director of the group, added that the group intends 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.

The Indian BPO sector is growing at 60 per cent annually and is believed to have crossed $ 2.5 billion mark. Several software service majors led by Infosys Technologies and Wipro have made a beeline for this segment.

Indian Rayon had earlier acquired a 50.35 percent stake in PSI Data Systems from France's Groupe Bull at a price of Rs 186.80 per share, totalling Rs 71 crore.

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