Capgemini SA, the parent company of the Capgemini Group, will pick up a 51 per cent stake in Unilever India Shared Services (Indigo) for an undisclosed sum.
Indigo is a wholly owned Hindustan Lever subsidiary that provides financial shared services and Sarbanes Oxley Compliance Services to Unilever group companies around the world.
The acquisition of Indigo is likely to be consummated in October, following which the value of the deal will be reflected in Hindustan Lever's fourth-quarter results (Hindustan Lever follows a January-December financial year).
Capgemini and Hindustan Lever have also entered into a seven-year agreement to deliver the full range of BPO financial and administration services to the Unilever companies that are customers of Indigo at present.
Indigo's board will have two representatives from Hindustan Lever and three from Capgemini.
According to the shareholders' agreement, the sale of the remaining 49 per cent, held by Hindustan Lever, could be executed in the last quarter of 2008.
With this deal, Indigo can pitch for business outside the Anglo-Dutch conglomerate. D Sundaram, Hindustan Lever finance director and chairman of Indigo said: "The partnership with Capgemini will bring global shared service skills and technology to Hindustan Lever and Unilever. It will also enable leveraging the Indigo expertise, and represents an exciting opportunity for Indigo employees to extend the business outside the Unilever Group."
The partnership will ensure the smooth implementation of Hindustan Lever's transition to SAP as the ERP platform, as well as in other ongoing projects.
For Capgemini, the partnership will supplement its BPO capabilities in finance and accounting in India, and aid its strategy to enhance its existing BPO global delivery network in Poland, China, India, Australia, the US and Canada.
Capgemini already has about 6,000 professionals in India (in Bangalore, Kolkata and Mumbai).
"This relationship with Unilever will expand our footprint in India by adding Chennai to our network of global delivery centres," said Baru Rao, CEO, Capgemini India. It will contribute to Capgemini's goal of having 10,000 employees in India by the end of 2007.
Indigo has operating centres in Bangalore and Chennai, employing nearly 600 professionals, including about 75 chartered accountants. It serves Unilever companies in about 45 countries in Asia, Africa, Australasia, Europe and North America. Lazard was Hindustan Lever's adviser for the deal.
