The Hindu Business Line : Hero group spins off BPO division into separate company

THE Hero Group, on Wednesday, announced the hiving-off of its IT-enabled services unit, HeroITES, into an independent company, to pave way for the latter's proposed initial public offering by end-2006.

The company said that Mr Sunil Kant Munjal would be actively involved in the company operations as managing director and CEO. It has also outlined a comprehensive business strategy to be amongst the top 5 BPOs in the country by 2007, a company release said. The company is targeting an organic growth of 100 per cent for the next two years. Also, as part of the growth strategy, it plans to aggressively look for acquisitions in identified markets, sign new customers in the US and UK and double the headcount to 2,000 employees in one year.

"We have been growing at close to 100 per cent in last two years and hope to sustain this growth rate over next few years. We have now attained a reasonable size and are profitable. We have strengthened our management team through several senior-level appointments drawn with substantial experience of the outsourcing industry. The company has a robust pipeline and will continue to grow this year. Accordingly, the Hero Group felt it was an opportune time to hive-off HeroITES into an independent company and that it was no longer necessary to lend management support to the company," said Mr Munjal, Managing Director and CEO, HeroITES.

The company's recently constituted merger and acquisition team is aggressively looking at acquisition opportunities in the US market. "We are targeting profitable companies with revenues of under $100 million and a sound management team," he added.

HeroITES has experience in the credit card industry and has been providing services to at least three of the top-10 credit card companies in the US.

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