Head hunting firm Randstad starts integrating Indian subsidiariesAugust 9th, 2008 - 2:13 pm ICT by IANS
By Venkatachari Jagannathan
Chennai, Aug 9 (IANS) The Netherlands-based 9.19-billion euro ($13.9-billion or Rs.586-billion) global staffing solutions company Randstad Holding has started consolidating its Indian operations. In India, Randstad has seven outfits - Beresford Blake Thomas (BBT), EmmayHR Services Ltd, Team HR Services (popularly known as Team4U), Ma Foi Consulting Solutions, Ma Foi Global Search Services and Ma Foi Management Consultants.
While BBT, EmmayHR and Team4U were part of Randstad, the Ma Foi group came to its fold when it acquired the 8.43-billion euro (Rs.530.7 billion) Netherlands-based staffing solutions company Vedior last year.
Ma Foi, the largest staffing solutions company in India, became part of Vedior in 2004.
In 2007, the combined revenues of Randstad and Vedior was 17.6 billion euro (Rs.1.1 trillion).
As part of its integration process, Ma Foi chief executive K. Pandiarajan has been appointed Randstad India’s managing director in the place of Monisha Advani who is now back at EmmayHR as its managing director.
Pandiarajan is also the CEO of Team4U’s operations replacing Abinav Dhawan, its managing director.
Confirming the top level rejig at Team4U to IANS, Randstad Group communications manager Machteld Merens said in an e-mail: “There has been a management change at Team4U following the completion of Vedior acquisition. Pandiarajan is now the CEO for Ma Foi and Team4U.”
He declined to comment on what the management change at Team4U portend for other Randstad Group companies in India, or what corporate structure would eventually evolve.
“We cannot share more details at this stage; it’s too early to elaborate on the strategy in India as many things need to be discussed,” Merens said.
Pandiarajan will be assisted by an interim management team comprising two managers from Ma Foi and one from Team4U to run the daily operations.
With this integration of Team4U with Ma Foi, the combined temp/flexi staff strength of Ma Foi will grow to over 46,000 and the core staff strength to 2,054 in India.
Interestingly, in its last annual report, Randstad has said that EmmayHR and Team4U have been carefully integrated and “will be rebranded as Randstad in 2008.”
Randstad seems to have changed that strategy, however, as Team4U will be merged with Ma Foi and EmmayHR will continue to exist as an independent entity with focus on search and selection.
Queried about her return to EmmayHR, Advani said: “My heading Randstad India as its managing director was an interim measure. It was actually an interim steering committee.”
With Ma Foi being a bigger brand in India, Randstad has decided to retain that name in respect of flexi-staffing solutions.
Though Pandiarajan, who founded Ma Foi, doesn’t specifically say so, it seems Ma Foi will continue to exist and function independently.
“Randstad has agreed to support the Ma Foi brand in the case of mass staffing services,” he told IANS.
On the other hand, Advani categorically told IANS: “EmmayHR will continue to exist as a separate entity.”
EmmayHR was Randstad’s first Asian acquisition in 2005.
“I report directly to Randstad Holding and so does EmmayHR,” she added.
Pandiarajan declined to comment on the status of Ma Foi in the entire restructuring scheme that Randstad is chalking out for its Indian operations, or whether he has to part with his stake in his company.
“All I can say is that my wife and I hold minority stake in Ma Foi. I am basically a professional CEO who also happens to be the promoter,” he added.
In 2007, Ma Foi generated revenues of Rs.4.34 billion ($103.4 million), while the combined revenues of Team4U and EmmayHR is said to be around a third of that.
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