Date:13/01/2007 URL: http://www.thehindubusinessline.com/2007/01/13/stories/2007011301250400.htm

Back Moldtek to rejig operations, eyes overseas buy

Our Bureau

Hyderabad , Jan. 12

Moldtek Technologies Ltd, engaged in plastics and business process outsourcing, has informed the BSE that the company's board of directors considered restructuring of operations and overseas acquisition.

Following this meeting, it is proposed to restructure and consolidate the plastics and engineering and knowledge process outsourcing (KPO) businesses with a view to creating separate business entities that would focus on their respective lines of activity.

A consultant and valuers for drawing up a scheme of arrangement for merger and demerger would be enlisted.

Moldtek's KPO division added about 15 clients in the US and Canada and the KPO head count has gone up from 10 to 175. As a first step, it has been proposed to merge Teck Men Tools Pvt Ltd (TMTPL), a decade plus old unlisted company. Teck Men is a packaging company with clients such as Asian Paints, Bharat Shell, Tata Coffee and Hyderabad Chemicals. Merging TMTPL with Moldtek is seen to be enhancing the product range and bring in synergies of operations.

The board has identified a US-based KPO (engineering/detailing) company for acquisition and authorised the management to go ahead with due diligence and valuation. Through this, the company will have direct marketing presence in the US.