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Mr Prakash Iyer, MD, Infomedia India Ltd, addressing a press conference in Mumbai on Monday. - - Paul Noronha

Mumbai , Dec. 19

PUBLISHING company Infomedia India Ltd has announced that it has acquired two publishing BPO firms for a total of $7 million.

Infomedia bought a 100-per cent stake in Keyword Group Ltd, a UK-based publishing BPO company, and a 21-per cent stake in Bangalore-based Cepha Imaging Systems.

Keyword already holds 49 per cent stake in Cepha. In two years, Infomedia plans to acquire the remaining stake from Cepha's promoters.

This acquisition helps Infomedia transform itself into a publishing services company, said Mr Prakash Iyer, Managing Director, at a news conference.

While Keyword provides the front-end in the UK market, Cepha gives Infomedia the cost and knowledge skill advantage, Mr Iyer said.

Infomedia is also looking at such an opportunity in the US, he said.

Publishing outsourcing is one of the most profitable business segments of Infomedia, which is also into special interest publishing and directory.

This business, according to Mr Iyer, is growing at 30 per cent. It will bring in another Rs 20 crore to Infomedia's topline, now at Rs 125 crore. Margins in this business are around 35 per cent. Even as these acquisitions help Infomedia move up the value chain, they also help the company with big customers. Keyword and Cepha have a strong customer base, Mr Iyer said.

With these acquisitions, Infomedia adds 260 people. "We would like to scale up Cepha to be able to do more," said Mr Iyer. Special interest publishing is expected to witness double-digit growth. There is opportunity for special interest magazines in segments such as film industry, control engineering, jewellery and supply chain. The joint venture arrangement with Reed Elsevier announced earlier would help Infomedia expand this business. In directory business, Infomedia is introducing Yellow Pages in three more cities. At present, this directory is available in 16 cities.

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