NRI entrepreneur's holding firm is on an expansion drive

While the economic downturn may have brought liquidity problems for most of corporate India, NRI entrepreneur C Sivasankaran does not seem to be short of cash.

Indeed, going by the latest action by Siva Ventures, his holding company, is on the verge of a major expansion into the relatively undervalued corporate economy. Sivasankaran is known for buying companies on the cheap and selling them off for much higher valuations after a few years.

"The group is on the threshold of major growth in all our verticals. Bringing in topnotch talent will enable us to realise our vision and help grow our business," said V Srinivasan, chief executive officer, announcing that the group has signed on 22 engineer MBAs from the Indian Institute of Management (IIM), Lucknow.

The group, which claims to be worth $2 billion (Rs 10,000 cr), however, did not give any more details of its expansion plans or the investments involved, except to say that growth will be in the sectors of telecom, wind energy, shipping & logistics, real estate, agro-business and media & entertainment.

Sivasankaran is known for developing Dishnet Wireless, a former Internet service provider and cellular operator, and for buying into and then selling off, reportedly for a tidy profit, telecom operator Aircel Cellular and cafe chain Barista.

The group, formerly known as Sterling Infotech, said it is consolidating all operations under Siva Ventures as a holding company. "Key professional managers are in charge of each strategic business unit as profit centre heads," the company said in a press release.

The market is rife with speculation that Siva, as he known in business circles, is likely to announce an entry into the telecom market by acquiring one of the many new licensees, many of whom have found the going tougher as funds for expansion have become harder to come by.

It is also not known where the company's current assets are. A spokesperson for the company refused to give any more details.

Sreejiraj Eluvangal/ DNA-Daily News & Analysis Source: 3D Syndication