The Hindu Business Line : Moldtek buys US firm Cross Roads for $1.3 m

Hyderabad May 7 Packaging and engineering knowledge process outsourcing (KPO) services provider Moldtek Technologies Ltd has acquired the US-based engineering and detailing firm Cross Roads Detailing Inc (CRD) in a $1.3-million deal.

"We will pay 75 per cent in cash and 25 per cent in stock. However, CRD can also have an option to close the deal fully in cash. We will make the payment in six to nine months from now,'' Mr Laxman J. Rao, Managing Director, Moldtek, told Business Line here on Monday.

Headquartered at Indiana, CRD will now be a wholly owned subsidiary of Moldtek in the US and will handle marketing, client interaction and final checking. "We also secured a promise from CRD team to get orders worth $2.5 million during this fiscal year," Mr Laxman Rao said.

In view of their expertise in the KPO processes, the CRD's personnel would be involved in training team detailers in India, he added.

Promoted by an engineer, CRD clocked $1.3 million revenue in 2006 with 12 American engineers including three US certified professional engineers on its rolls. It is currently providing structural engineering and detailing services to about 20 fabricators and builders in the US.

With the addition of CRD, Moldtek's KPO division expects to continue to grow in the near future at around 200 per cent per annum that it achieved during the last year. It achieved a turnover of Rs 11.50 crore in 2006-07.

To achieve greater efficiencies, Moldtek was working on a scheme to demerge its KPO and plastic packaging divisions into two separate listed entities, he said. "We will also double our headcount to 400 from current 200 during the current financial year,'' he added.

Moldtek is currently constructing a campus at a cost of Rs 15 crore to accommodate 500 engineers here. The campus is expected to be ready by the year-end.

More Stories on : Mergers & Acquisitions | Overseas Investments | Outsourcing

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