Aug 15, 2009

UST global to file for IPO after recession : CFO

UST Global is a US-based IT software and services company with majority of its operations in Kerala.
Saw this piece of news in "The Economic Times".

"Our growth has so far been organic. But, we are open to acquisitions if they have advantages in new technology areas and help us to grow in markets like Europe and Asia. But, they should have a good culture so that it can be smoothly integrated with ours", UST Global CFO Krishna Sudheendra told ET in Chennai.

UST Global recently acquired a testing company in Canada and an e-commerce company in the US. Its largest vertical is healthcare, garnering 40% of revenues.

The company's strategy has so far been on saving costs by setting up its development centres in Kerala, which still remains a low cost destination compared to Chennai and other major cities. "The Kerala government, through the downturn, has been strict that there should be no layoffs. But, they have been providing us other sops," Mr Sudheendra said. "The cost arbitrage in this state is nearly 25% more compared to the more industrious states of the country."

The company has a global workforce of 6000
India - 4800
Trivandrum - 3500
Chennai - 1000
Kochi - 250

The company has offered employment to 400 students from the engineering colleges in the state last year 2008-09. UST global has stopped campus recruitment temporarily.

"The strong base of engineering students in Kerala is very much undertapped, and they have to go outside the state to seek jobs, "Mr Sudheendra said. Plus, lot of experienced people working abroad want to return to their home State.

"Lateral recruitments are still on and we have found that Malayalees are only too keen to return from wherever they are and work for us, as they can stay with their families, their children can grow up with their grandparents in their homeland," Mr Sudheendra said.

The company have plans to launch UST Global Kottayam, UST Global and so on.
"We would also be going in for a market issue after the global economic recovery is confirmed," Mr Sudheendra said.

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