Mold Tek to buy US-based KPO; hive off plastics

New Delhi, Jan 10: Mold Tek Technologies Ltd today said it will acquire a United States-based Knowledge Process Outsourcing company, besides hiving off its plastics and engineering knowledge process outsourcing businesses.

The company said its board has identified a US-based engineering and detailing company for acquisition and authorised company's Managing Director to value the latter and place a proposal.

''By acquiring the proposed company, Mold Tek will have a direct marketing presence in the US, which will further boost up sales and higher value addition in its KPO division,'' the company said.

The target company has about 12 clients in the US, skilled and experienced manpower who can train the Indian KPO engineers in advanced structural skills, apart from marketing and client coordination, it added.

The company said its Board of Directors have also discussed the proposals to restructure and consolidate the business with a view to create separate business entities that would focus on their respective lines of activity.

The board authorised the company's Managing Director to appoint consultant and valuers for drawing up the schemes of arrangements for merger and demerger.

''Mold Tek's Board of Directors, for better focus on this fast growing division have decided to consolidate and separate both the divisions into two separate entities,'' a company statement said.

Mold Tek is a leader in plastic pails and also one of the very few engineering KPO service providers in India. Over the last four years its KPO division has been growing rapidly at a compounded annual growth rate of 200 per cent, adding about 15 clients in the US and Canada and the head count has gone up from 10 to 175. It is expected to grow at similar rate in next few years, it added.

The proposal to merge Teck men tools Pvt Ltd (TMTPL), a more than a decade old unlisted company engaged in similar line of activity, with the company has also been approved by the board.

Teck Men is a packaging company with clients like Asian Paints, Bharat Shell, Tata Coffee, Hyderabad chemicals etc. Merging it with Moldtek will enhance the product range and bring in synergies of operations, the company added.

UNI