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Apple Finance sells Hexaware Technologies

The closely held HIL, which has acquired the Rs 320-million HTI for Rs 80 million, was also a subsidiary of Apple Finance until a couple of years ago.

T O D A Y

• Vapourware! • Apple restructuring • Supercomputer curbs • BPL Instacard

Apple Finance Chairman Atul Nishar has said, "This is the last restructuring activity in the group relating to the businesses of the companies in which they operate.

"Apple Finance has received Rs 80 million for the sale of HTI and is now a purely finance company with no unrelated businesses. Amongst the information technology businesses, the Aptech Group of companies is in the training business and the Hexaware Group is in the business of software development, implementation and trading.''

Apple Finance had undertaken the first major restructuring exercise nearly three years back when it spun off its software training business into a separate company called Aptech Limited.

The shareholders of Apple Finance received one share of Aptech for every 10 shares held in Apple Finance.

The latest annual report of Apple Finance for the 18 months ended December 1996 says that HIL ceased to be a subsidiary of Apple Finance as it did not subscribe to the additional issue of equity shares as it was restructuring its businesses.

The annual report, however, reveals that Apple Finance subscribed to Rs 50 million worth of preference share capital during the same period.

According to G S Krishnamurthy, the recently appointed chief executive of the Hexaware group of companies, the total turnover of the three companies HIL, HTI and HTI UK Limited (a subsidiary of HTI) was around $11 million for 1997. The approximate break-up of the turnover of the three companies is Rs 100 million, Rs 320 million and Rs 30 million, respectively.

HTI and its subsidiary have recorded marginal losses for financial 1996. Similar figures 1997 were not available.

HTI's major focus till date has been on providing solutions for the millennium bug problem. According to Nishar, HTI's scope of activities is being expanded to cover re-engineering and software development activities and solutions for systems migration.

"The Hexaware Group will be undertaking a Rs 100-million capital expenditure during 1998. This includes setting up a software development factory in Madras and entry into the Japanese market.

"We will be recruiting over 300 software professionals this year and expect to double our turnover,'' Krishnamurthy said.

- Compiled from the Indian media

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