The Hindu Business Line : `We approached, met? and formalised'?

BMR Advisors, a Delhi-based professional services organisation offering a range of tax, risk, M&A advisory and managed services, has entered Chennai by acquiring K. Ravi & Co, a CA firm set up in the 1980s. This becomes the fourth location in India, adding to BMR's offices in Delhi, Mumbai and Bangalore. Globally, the firm of 26 partners and over 375 people has offices in New York, London, San Francisco, and Bahrain.

When asked why Chennai is attractive for BMR, Mr Bobby Parikh, Managing Partner of BMR Advisors, speaks of the city as a location that has a diversified economic base anchored by automobiles, IT, ITES, IT hardware, financial services and real estate.

"Chennai is India's fourth largest city in terms of gross metropolitan product (GMP), and it is anticipated that the Chennai economy will grow to $150 billion by 2025 from the current $45 billion," he adds, in the course of an email interaction with Business Line soon after the announcement of the deal.

While Mr Parikh is silent on the firm's plans for the Chennai market, he does make a mention of the significant presence here of Indian family businesses and MNCs.

Excerpts from the interview:

Were there any issues in the takeover?

There were no issues involved with the takeover. We approached, met and formalised. It is a mutually beneficial relationship. BMR Advisors provides K. Ravi & Co with a credible platform for future growth in the market and it in turn will leverage on BMR's reputation in the market. An element of our strategy is to expand geographically, both within and outside India. We have been evaluating a number of alternatives in this regard and are pleased to announce that we will establish an office in Chennai effective October 1, 2008.

What's the value K. Ravi & Co brings to the table?

With the new alliance BMR now has an established presence in the Chennai market with a competent and credible team. This in turn also strengthens our tax litigation capabilities. K. Ravi & Co has capabilities in the direct and indirect market. And that helps us to deepen our presence in South.

Will there be any change in the nature of work?

No.

Is there any similar exercise (involving takeover of existing firm) being planned by BMR elsewhere?

No other exercise. We are always looking for opportunities with good professional firms and we will continue to examine. This is an exciting development for the firm, combining greater geographical reach, the potential to reach out to and work with new clients, and the augmentation of our capabilities in the tax controversy area which is strategic to the firm's future growth and development.

Does this takeover open new avenue for existing companies to merge with bigger consultancies?

We have no such plans. However, we are committed to building the BMR brand and business. We have had great successes in the past four years and we believe the value proposition we offer to our clients is different from the `Big 3' consultancies. We are happy with the support we have got from our clients and we will continue to build on it.

D. MURALI

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