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Global InnovSource, a company committed to the advancement of HR solutions, to growing companies, is slowly but steadily growing in the State. It has 100% company owned service branch network in Indore, Pune, Ahmedabad, Mumbai, Delhi, Bangalore, Chandigarh, Kolkata, Chennai, Hyderabad, Lucknow and Jaipur.

The company, with its branch, covers all kind of recruitment solutions for the State.

It offers staffing solutions, HR outsourcing and training solutions and has a professional team of 60 HR professionals and 140 recruiters. Global InnovSource is an HR venture of the GHC Group (Global Asset Holding Corporation).

GTL Infrastructure (GIL) has received commitment from a global private equity investor for around $250-275 million (Rs 1,000-1,100 crore). "GIL has signed a stake sale deal with a leading institutional investor, which has operations in three countries - the US, the UK and Singapore. The deal is expected to be announced shortly, if not tomorrow, " a well-informed source said.

The deal was signed today, but the source did not divulge the name of the PE major nor the percentage of stake divested for the investment. GIL is a subsidiary of network services provider GTL, and is a provider of telecom infrastructure like base transceiver stations (BTS). When contacted, a company spokesperson declined to comment on the deal. Meanwhile, in a release issued by GTL Infrastructure to the BSE today, the company said its board will meet tomorrow to finalise a proposal for preferential issue of shares/warrants up to Rs 1,200 crore.

The telecom infrastructure provider intends to use the proceeds for its expansion plans including setting up additional towers. GIL intends to take its total number of towers to around 25,000 in the next three years from the present 3,500 BTSes. According to an industry analyst, telecom infrastructure is a growing business in the country and many foreign players to looking at investing in the sector. Private telecom majors like Reliance Communications, Bharti Airtel, Idea Cellular and Tata Teleservices have announced plans to hive off their tower businesses and sell stakes in them.

The present mobile subscriber base is around 211 million, which is slated to grow to around 500 million in the next three years. At present, the industry has around one lakh towers, and this will rise to around 3,00,000 in the next three years, the source added. This is the second stake sale of the GTL group after a clutch of foreign investors acquired a 49% stake in Global Assets Holding (GHC), the holding company of GTL and GIL, for Rs 560 crore last week. The investors included Singapore's SC Bank private equity fund, Mauritius’s Technology Infrastructure and Park Holding Finance Corporation.

GHC is also the holding company of India Wireless Technology and Global InnovSource Solutions, two unlisted companies.

FIIs take 49% of GHC for Rs 560cr
   8 October 2007, Economic Times [Download the full article]
   Holding Co To Use Proceeds To Up Stake In GTL Ltd & GTL Infrastructure
 

GHC is also the holding company of two un-listed firms — India Wireless Technology Ltd, in which it holds a 30% stake, and Global Innov-Source Solutions, which it wholly owns. Following this deal, GHC will increase its in-vestment in GTL from 28% to 62%. It will also in-crease its stake in GTL infrastructure. Also, with GHC offloading stake in these investors, the total foreign direct investment in GTL will increase to a little over 71% from 40.7% while in FDI in GTL Infrastructure will rise to 39.3% from 33.9%.

GHC has established itself as a leading player in the telecom infrastructure and networking serv- ices space. At present, the group has combined revenues of Rs 1,281 crore and over 5,000 em-ployees across 25 countries. GHC has also in-formed the Foreign Investment Promotion Board (FIPB) that it would use the proceeds to further increase its investments in other unlisted group companies. It has also added that it will in-vest in its overseas subsidiaries for expanding business opportunities globally.

Industry sources said that investors had picked up stake in GHC primarily because of the impres- sive performance of GTL and GTL Infrastructure. GTL is amongst largest network services providers in India

and offers a range of services such as network planning and design, network deployment, operations and maintenance and also infrastructure management. It has a pres- ence in 20 countries and is associated with about 35 operators globally.

On the other hand, GTL infrastructure is In- dia’s third largest passive telecom infrastructure provider. The company is currently embarking on a ambitious plan of rolling out more than 22,000 towers across various telecom circles in India. The unlisted India Wireless Technology is in the business of manufacturing and fabrication of steel towers for telecom networks and the power transmission industry.

GTL is also arranging funding to the tune of Rs 1,000 crore for making global acquisitions and has already kicked off talks with at least four different companies toward this. Recently, GTL had acquired Genesis Consultancy, a UK-based net- work services provider, for about over Rs 40 crore. Additionally, GTL Infrastructure has al- ready rolled out 1,200 cell-sites and plans to set up another 6,700 towers by March 2008 with an investment of Rs 2,030 crore.

The potential for stand-alone tower business sector in India can be gauged from the fact that the country will need about 350,000 towers by 2010 from about 111,000 at present, as per the estimates of the Telecom Regulatory Authority of India.

Global InnovSource opens its Branch in Delhi
   8 August 2007, Internal News

Global InnovSource opens a new branch in Delhi. Its presence now in Delhi NCR is in Delhi central and Gurgaon. The new office will make it easier for them to address the North Delhi and NOIDA clients. With this, Global InnovSource has presence in 14 cities across the country.

Global InnovSource signs up with a Telecom services major
   28 July 2007, Internal News

Global InnovSource signs up a pan-India staffing services contract with a national Telecom Services major. Under this contract, Global InnovSource will provide trained manpower, for service support of the telecom company's customers. As a nation wide contract, at full capacity the numbers staffed are expected to grow to 3,000 in a phased manner.

Playing catalyst when you’re stuck with the nitty gritty
   Economic Times, 16 February 2007, Pg. 15, Yatish Rajawat, MUMBAI [Download the full article]

THE biggest challenge an entrepreneur faces is how to scale up his business. Most entrepreneurs do not realise that they are the bottlenecks in the growth path of their own companies. As the business grows, entrepreneurs need to learn to delegate and build processes and systems if they want to create an organisation. Anyone who has done a start-up knows that it takes blood and sweat to build it. Processes and systems reduce the dependence on the founders for

To achieve any kind of scale in an organisation, the most important component needed is people. Organisations are not built on founders’ efforts only, they are created when people decide to work and push in the same direction. And to push in the same direction, one needs systems.

Raja Sekhar Reddy, an IIT and IIM alumnus, worked for almost 12 years in a large organisation building such systems. He realised, that this is a problem across companies, especially in small and medium-sized companies. To him, the problem was also a business opportunity. Therefore, he decided to leave his cushy job and start InnovSource.

Anecdotal evidence suggests that biggest growth does not take place in large conglomerates but in small and medium-sized companies. It is common for these mid-market companies to show 100% plus growth year on year. Most of them are even looking at exponential growth.

Growth brings its own complications. As the number of employees in an organisation grows, the founders devote less time with each one of them. Employees, who had worked directly with founders, get disenchant- ed and feel that their importance is going down in the organisation as the interaction drops. Moreover, at times even the growth slows down as employees need to wait for decisions to be taken by founders.

Reddy, says, “We have seen that after a company reaches a critical size of 100 employees, the lack of systems and processes start affecting its growth. Simple things like appraisal systems, travel policy, salary structure and even employee contracts can slow down a company.”

“For instance, we worked with a 50 employees company in Delhi, with revenues of Rs 12 crore. When we started the assignment, all their employees were consultants and there was no standard employee contract. We are in fact working as an external HR department for this firm, now.” InnovSource has four different lines of business — HR solutions, training, recruitment and staffing. InnovSource will have revenues of Rs 13 crore in the current fiscal ending March 2007 and is targeting Rs 30 crore for the next fiscal.

InnovSource’s business model and service lines may not be unique. But the company is thinking laterally about how to expand its core strength in staffing to new verticals and even new services. At present, the firm derives bulk of its revenues in staffing from the telecom sector. It is expanding into new verticals like banking, retail and construction and real estate.

There is a lot of competition in the staffing space from both Indian and global companies. Almost every global staffing major from Vedior to Randstad has large operations in the country. Then, there are mid-sized Indian firms which are also active. Even in the HR consulting space, there are global majors like Mercer, Hewitt and several small sized firms offering services.

Raja Sekhar Reddy feels the firm can extend its staffing operations into other products like facility management and even security services. “Security services and facility management services are nothing but large staffing operations. We think we can expand into these areas without diluting our core focus,” he says.

Facility management and security services are people intensive businesses and can be considered akin to staffing. But they are low margin businesses with a completely different set of variables. A business like facility management has low margins and has to be combined with other services to be sustainable.

Moreover, both these businesses are at the lower end of the spectrum and may dilute InnovSource brand in the HR consulting space. Raja Sekhar Reddy says he is aware of these challenges but feels there can be opportunities. InnovSource is looking at acquisitions and organic way of growing its business over the next three years. Mid market companies need companies like InnovSource as they plan their growth.