M S Ramaiah Group consolidates businesses

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

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

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

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

He said, “By being a single group, we can steer growth through international partnerships, joint ventures and by channeling new investments to achieve the targeted revenue goals.”

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

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