Search the Internet          Tips  Sites: Finance, Investment

Warburg buys stake in BA India unit

Leading global private equity investor Warburg Pincus on Thursday said it has taken a majority stake in British Airways' Indian remote processing unit WNS.

It did not indicate the stake size or the amount invested.

Formerly known as Speedwing World Network Services, the 1,500-people strong business process outsourcing company has centres in Mumbai and Pune, and does revenue accounting, accounts management, data analysis and customer management activity.

WNS needed investments to help it scale up its operations and globalise and the Warburg backing would aid that objective, Roger Maynard, British Airways director of Investments and Alliances, said in a statement.

British Airways is WNS' largest client but the company has also been offering support services to other airlines and companies in the insurance, pharmaceutical and market research industries.

"The BPO sector worldwide is poised to witness tremendous growth and India, given its rich human resource capital and intrinsic cost advantages is well positioned to dominate this space globally," Dalip Pathak, managing director of Warburg Pincus Singapore said in a statement.

WNS was one of the early players in the BPO business in India. Several multinationals driven by the need to cut costs are increasingly setting up such backoffice operations in India.

Pathak said WNS with its early mover advantage and experience could become a leading global organisation in the BPO area.

Warburg Pincus has invested over $650 million in India so far -- its biggest exposure in the Asia-Pacific region. Other key investments include Bharti Tele-Ventures, Gujarat Ambuja Cements, Housing Development Finance Corporation, Moser Baer and Nicholas Piramal.

ALSO READ:
The Rediff Budget Special
Money

Tell us what you think of this report