The Hindu Business Line : Genpact plans buying $200-m revenue cos

Expansion plans
Aims at stepping up presence in Latin America
Overseas headcount especially in China to increase
Keen on acquiring captives, but not looking at local India companies

Vishwanath Kulkarni
Moumita Bakshi Chatterjee

Bangalore Aug. 7 Armed with a $494-million war chest, business process outsourcing firm Genpact is eyeing the acquisition of bigger firms with revenues of $100-200 million to enhance its capabilities and acquire customers.

The President and CEO of Genpact, Mr Pramod Bhasin, told Business Line that the company was in talks at various stages with about four to five overseas firms for a possible buyout, but did not specify any time-frame for concluding the deals.

“We are looking at adding capabilities in financial services overall, especially in finance and accounting and investment banking. We have strengths in these areas and would like to expand them,” Mr Bhasin said.

“In the past we have looked at smaller companies with revenues of $10-40 million. But we would now like to get to the $100-200-million revenue level. We got to look at something big which makes a bigger impact,” he said.

Further, Mr Bhasin said the company was also interested in acquiring captives, but not looking at local India companies. However, he refused to comment on the market rumours that the company was eyeing Citigroup’s captive BPO.

Genpact is also looking at stepping up its presence in Latin America to cater to the multinationals operating in the region, where the company sees major potential. Currently, it has a presence in Mexico where it runs a 2,500 people delivery centre catering mainly to the global customers.

Genpact has extended its operations to Romania and the Philippines last year and continues to expand to new cities in China. About 80 per cent of its workforce is based in India, while the rest is overseas.

Mr Bhasin said the overseas headcount of Genpact especially in China would go up in future because of the smaller scale but it will not swing the balance significantly.

Genpact recently listed its shares on the New York Stock Exchange after concluding the initial public offering of 35.2 million shares raising $494.1 million.

More Stories on : Outsourcing | Mergers & Acquisitions

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