WNS to use $50 million for acquisitions, setting up SEZs

Written by Kirtika Suneja | Mumbai | Updated: Feb 17 2012, 11:44am hrs
Mumbai-based pureplay BPO company WNS plans to use the $50 million it recently raised through primary and secondary offering of its shares for acquisitions and to create special economic zones (SEZ) in India. The firms CEO Keshav Murugesh told FE that the funds will be used to create capacity both in the country and globally.

FE had reported earlier this month that WNS had raised $50 million by proposing to offer 5.25 million new shares through American depository shares (ADS).

We plan to create SEZs and delivery centres in India besides doing small tuck in acquisitions in our core verticals and horizontals. These would be small platforms related buys, not any big buys, said Murugesh. The firm had acquired Aviva Global Services, the UK-based insurance giant's captive BPO in India and Sri Lanka, for $230 million in 2008.

WNS has set up a thousand seat centre in Chennai and has also acquired land in Andhra Pradesh and Tamil Nadu to create SEZs. We are looking at 3-4 different locations and Gujarat and Maharashtra are also in the pipeline for SEZs, he added.

Globally, the firm is expanding its sales team in the UK, US, Australia and the Middle East. However, WNS is going slow on hiring and is focused on non-linearity which means that revenue will grow faster than the headcount. Currently, 40% of WNS revenues are from non-full time equivalent (FTE) models.

Moreover, the BPO is now entering new geographies in South Africa and Brazil and Columbia in South America though the client partner model to offer high-end non-voice services.