30th August, 2004
Chennai : On Sunday, you will see him with destitute children, below poverty line patients seeking financial assistance and the like. On Monday you will see him get into hard – core technology talk with geeks in his office.
K.V. Ramani, chairman, Future Software is a multi – faceted man. His philanthropic activity hit the headlines too. Only a couple of days ago, he transferred his 6.13 per cent stake in Hughes Software valued at nearly Rs 100 crore to a trust Shirdi Sai Trust which is engaged in the uplift of the downtrodden, manages a Shirdi Sai Baba temple near Mahabalipuram and provides financial assistance to poor patients.
Last Thursday he sold his company to multi – billion doller Flextronics. “It is a cash plus stock deal. My stake in FutureSoft was around 55 per cent, Which has now been sold to Flextronics,” Ramani said. The deal size is kept under wraps pending statutory clearances. Intel Capital and IL&FS hold 13 per cent each while the balance is with employees of Future Soft.
“Flex has informed us that they are making India the capital for design services. Hughes Software and Future Soft are the two companies which are under their fold now. They have told us that they are acquiring two to three more companies in Banglore and all the operations in India will eventually get synergised to make it the hub for global design services which is now scattered around the globe,” he added.
Future Software was one of the earliest entrants in the telecom software space. “I was one of the first to start offshore software development way back in 1985. I was not interested in sending techies abroad which most of the companies did and continue to do; to get huge toplines and bottomlines. Our business model was different. We remain focused on high end design work for telecom companies.
“The past two years have been bad for us due to telecom market crash. Things have started improving now. We have seen a 35 to 40 per cent growth in our company during the last two quarters”, Ramani said. The company will close year 2004-05 with a topline of $23 millon and a bottomline of $3.5 million.