Randstad, the Rs 22,000 crore (Rs 220 billion) Dutch human resources major, has acquired a 51 per cent stake in Mumbai-based EmmayHR for an undisclosed sum.
"We will purchase the balance stake over one to five years," Frans Cornelis, managing director of Randstad, said in Mumbai on Tuesday.
This is the Amsterdam-based company's first Asian acquisition. It has a wholly owned subsidiary in Shanghai, China. "In the rapidly developing Indian market, recruitment is a key service and acquisition of EmmayHR gives us a foothold in that growing sector," said Cornelis. He hinted that the company might go for more acquisitions in India. "We are studying the market," he added.
The acquisition comes after a two-year study by the Dutch company. It has earmarked euro half a billion for more acquisitions in India, China and Japan. Globally, recruitment is expected to grow by almost 23 per cent this year. Randstad's revenues in the third quarter this year, grew by 15 per cent.
EmmayHR, based in Mumbai, specialises in permanent recruitment in sectors such as banking, BPO and travel and leisure. "By March 2006, we will add offices in Delhi and Chennai," said Monisha Advani, CEO. At present, the company has five branches in four cities and has 120 employees in its pay rolls.As a Randstand company, Advani will be the chairman and managing director of EmmayHR. Cornelis didn't rule out possibility of the Dutch company exchanging workforce with its new Indian arm.