The Hindu Business Line : Writer Corpn eyeing global acquisition

According to Mr Yazdi Desai, Joint Managing Director, the acquisition is aimed at derisking the Indian business and is also aimed at taking on MNCs in their backyard.

The company has also already appointed a foreign bank, which is talking to the officials of the potential targets. Mr Desai refused to disclose the name of the bank.

Instead, he said that the proposed acquisition is likely to be over in a year and the acquiring company would have a strong presence in Thailand, Hong Kong, Singapore, and West Asian countries.

Writer Corporation started its business as a mover and packer but subsequently moved into information management and logistics. It is also engaged in cash management of private sector banks, freight forwarding, and travel management services.

The company is building a 100-villa holistic lifestyle retreat at Shillim off Mumbai, which would spread over 2,500 acres. The facility would be ready by next year and is to be managed by Hilton.

It is investing Rs 110 crore in this property and is planning to develop a similar property in Goa at a cost of Rs 140 crore, which would also be managed by Hilton.

Apart from investing Rs 250 crore in the hospitality sector, the company is planning Rs 150 crore for relocations, logistics, and information and cash management businesses over the next five years. A public issue was totally ruled out by Mr Desai.

Funds for these expansion activities would come from internal accruals and loans from banks and financial institutions. Writer Corporation is currently a debt-free company.

In 2005-06, it is expecting a turnover of Rs 150 crore and an EBIDTA of Rs 45 crore.

Mr Desai expects these figures to increase to Rs 450 crore and Rs 150 crore respectively in the next three years.

Writer Corporation has also conceptualised a new business, called third party logistics for importing companies.

The blueprint is being readied. According to Mr Desai, this new business would start within a year. "We would be catering to pharmaceuticals and computer firms."

For the information storage business, it has initiated dialogues with public sector banks and State Governments.

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