Deccan Herald News page

From: Subject: Deccan Herald News page Date: Wed, 28 May 2003 12:35:57 +0530 MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_00BB_01C32515.B018C4A0"; type="text/html" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2800.1165 This is a multi-part message in MIME format. ------=_NextPart_000_00BB_01C32515.B018C4A0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.deccanherald.com/deccanherald/may28/b6.asp Deccan Herald News page

Wednesday,=20 May 28, 2003

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M S Ramaiah=20 Group
consolidates businesses

DH = News Service=20 BANGALORE, May 27

M S Ramaiah = Group, known for=20 its chain of educational institutions, has consolidated its = different=20 business ventures of engineering services, IT solutions and = retailing=20 under a single entity =97 Valdel Corporation.

The = newly-formed=20 corporation comprises of Valdel Engineers and Constructors = formerly known=20 as John Brown Technologies, AmSoft, Valdel Retail (formerly known = as Sun=20 Mart) and proposed Valdel=92s BPO venture to be located in = Bangalore. The=20 corporation plans to invest Rs 25 crore and Rs 10 crore in its = retailing=20 and BPO ventures respectively over the next one=20 year.

Disclosing this to mediapersons here on = Tuesday, the=20 Corporation=92s chairman, Mr M R Jayaram said the restructuring = process=20 emphasised on the consolidation of the companies and creation of a = professionally managed multi-business corporation. However, he = said the M=20 S Ramaiah Group=92s educational and healthcare institutions would = continue=20 to operate as separate business.

Valdel Corporation = Managing=20 Director M J Shantharam said it was targeting revenues of Rs 170 = crore=20 (engineering services =97 Rs 50 crore; retail =97 Rs 100 crore and = software =97=20 Rs 20 crore) by 2005. In 2002-2003, Valdel Engineering firm, in = which=20 US-based S&B Engineers and Constructors has a stake of 26 per = cent,=20 clocked revenues of Rs 18 crore while AmSoft reported an income of = Rs 7=20 crore.

He said, =93By being a single corporation, we = can steer=20 growth through international partnerships, joint ventures and by=20 channeling new investments to achieve the targeted revenue=20 goals.=94

On the retailing unit, Mr Shantharam said it = would set up a=20 supermarket in Bangalore suburbs by end of this year and offer = services=20 ranging from grocery, garments, chemist, photography shop to ATMs. = The=20 corporation had entered into a strategic tie-up with Suwiah = Corporation,=20 Malaysia in this regard, he added.

On the BPO venture, Mr=20 Shantharam said the contact centre, with seating capacity of 250, = would be=20 established during this year and focus on offering services for = areas such=20 as telecom, financial and retail.

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