Date:18/05/2004 URL: http://www.thehindubusinessline.com/2004/05/18/stories/2004051801050700.htm

Back Vanenburg to expand operations

V. Rishi Kumar

Hyderabad , May 17

THE Vanenburg Group, part of the Dutch group of Mr Jaan Baan, has enlisted the services of consultant Ernst & Young, to rope in a strategic partner to help the group further consolidate Indian operations. This would be through part divestment of stake.

The Managing Director of Vanenburg Technology Parks India, based at Hyderabad, Mr S. Ramanathan, told Business Line that this move was aimed at further consolidating the Indian operations and expanding its presence in the country possibly into other cities as well. If the strategic fit is from overseas, this could perhaps require FIPB nod before the deal.

Mr Ramanathan said that the Group, which has two parks in the Hyderabad centre located in a 20-acre site, was in the process of completing the third park shortly.

And now as the company was scouting for a strategic partner , the plans for the fourth park have been completed and the work is set to commence. This project would be completed in about eight months.

With the completion of the fourth phase of about 200,000 sq. ft, the total built-up space of the Vanenburg Park was set to go up to about one million sq. ft. "Given the business scenario, we see there is potential to grow a few more parks not just in Hyderabad but also in other centres," Mr Ramanathan said.

"While we decided to bring in a partner to further strengthen the existing business of developing parks, part of the proceeds of the divestment of stake would be deployed to grow the software business of the group firm Cordys, engaged in enterprise integration solution. We have clients such as Cognizant, Deloitte, Accenture, Motorola, C31, among others, and expect to bring in more players for the fourth venture", he explained.

Onrecent reports about the Vanenburg exiting Indian operations by fully divesting its stake here, Mr Ramanathan said that there was no total divestment but aimed at bringing in a strategic partner.

"When the Government enquired about this development, we clarified that we are not exiting but this was aimed at consolidating," he said.