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Neeraj Saxena
New Delhi, Aug 23: GE Capital has picked up an unspecified stake in CK Birla group software company Birlasoft through private placement.
As a result, the board of the company has been reconstituted with the induction of a GE Cap representative on the board, according to a press statement on Monday.
Justifying the decision to divest, company chairman CK Birla said, ``We have given our software business a renewed thrust and focus. The equity placement by GE Capital is an acceptance of the strengths of the company and a reiteration of the future they see in the company. We are pleased to have them as our partner is our plans to grow into a $200 million company in the next five years.''
Placed among the top 20 software companies in the country, Birlasoft has registered a compounded annual growth rate of 70 per cent over the last five years. The company plans to invest Rs 12 crore in the current financial year and has appointed many senior IT professionals to spearhead its growth in new cutting-edgetechnology areas.
Having completed a major restructuring programmme, including the launch of a new corporate identity and the appointment of a new chief executive Anal Jain, Birlasoft is expected to make further announceents soon, Birla indicated.
``The investment will be used to fund our expansion plans. In addition to increased focus on new technology areas, we are expanding geographically both in the domestic and overseas markets,'' said Jain.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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