KOLKATA: Group ICRA is looking to enter into strategic tie-ups for its non-rating businesses including outsourcing, software development and management consultancy. The move is part of its overall corporate strategy to diversify into new business areas to improve Group ICRA’s top line growth.

Speaking to media at the occasion of the acquisition of US software solutions provider Sapphire International Inc., ICRA vice chairman & group CEO P K Choudhury said: “We are open to strategic tie-ups and are looking at Middle East and East European countries.”  Group ICRA is already into non-rating businesses and has floated separate subsidiaries over the years to take up these businesses. While ICRA Online Ltd oversees the outsourcing business, ICRA Techno Analytics Ltd and ICRA Management Consulting Services manage the group’s software development and management consultancy businesses respectively. 

Group ICRA’s rating business now contributes about 60% to its total turnover. The balance 40% comes from their non-rating business.  The group has also floated a separate division to take up rating of micro, small & medium enterprises (MSMEs) to cash in on the growing business opportunity in the segment.

Mr Choudhury commented on the economic slowdown: “India Inc is anxious. The country witnessed more downgrades over the last six months compared to the corresponding previous period.  The more vulnerable the rating, the more frequent is our surveillance.  Ratings are also getting increasingly realigned if the companies cannot withstand the downturn or the global meltdown.”  Real estate, textile, few export based units and auto & auto ancillary units are some of the sectors which witnessed more downgrades in the last six months compared to last year, he added.   Source: The Economic Times

BIIA Newsletter June 2009 Issue