Infomedia eyes BPO firms in UK, US

Infomedia India Ltd is eyeing acquisition of BPO firms in the United Kingdom and the United States to consolidate its position in the $250 million publishing BPO market in India.

The company is in talks with several players in the US and UK and is expected to spend Rs 75-80 crore (Rs 750-800 million) on acquisitions. Infomedia India has cash reserves of over Rs 100 crore (Rs 1 billion) and it is planning to use its internal accruals to finance the deals.

"We expect this vertical to grow at a rapid pace in the coming years as there is a long list of satisfied client base from the United States, the United Kingdom and other European nations. The trend is only expected to increase in the coming years," said Prakash Iyer, managing director, Infomedia India.

The publishing BPO business is clocking an annual growth of 30 per cent in India with profit margins in the range of 30-40 per cent, company executives said.

Globally, the publishing industry has undergone a spate of mergers resulting in heavy consolidation and emergence of various publishing giants like Reed Elsevier ,Macmillan, Thomson and others.

These conglomerates are keen to outsource both low-end and as well high-end publishing work to India, industry sources said.

In 2002, the Tatas sold Infomedia India with ICICI Venture Funds Management completing one of the first management buyouts, by acquiring over 70 per cent equity stake for a consideration of Rs 110 crore (Rs 1.10 billion).