The Hindu Business Line : Servion Global winds up education training unit

Mr K Balakrishnan (right), CEO , Servion Global Solutions and Mr G.Shankaran Nair, Senior Vice-President, at a press conference in Chennai on Tuesday. - - Shaju John

Chennai , Aug. 10

THE Chennai-based Servion Global Ltd has wound up Net Labs, its education training division, and reduced focus on its business in Australia as a part of restructuring, according to Mr K. Balakrishnan, Managing Director and CEO, Servion Global.

Net Labs,did not give the right kind of returns to Servion. . Servion still operates in Australia, but was not making any sales there, he told presspersons here on Tuesday.

According to Mr Balakrishnan, Net Labs's revenue for the year ended March 31, 2004, was $1 million and it employed about 25 people, who have now been shifted to Servion. Mr Balakrishnan, who took over as the Managing Director and CEO from April 1, 2004 said, "We went through a bad patch in the last couple of years. There has been a significant turnaround in the last three-four months. Our investors were not pleased with the returns on their investment. The restructuring should provide them good returns in the next couple of years," he said.

In 1999, the Citigroup invested $1 million for a 35 per cent stake and in 2001, Templeton invested $2 million for a 7 per cent stake.