Pricewaterhouse-Coopers (PwC) India may buy out ECS, formerly Eicher Consultancy Services, which has over 150 management consultants and earns about Rs 20 crore annually. PwC India’s consulting business revenue is Rs 40-50 crore per annum.
The proposed deal is coming through amidst speculation in the country’s consulting circles that one of the world’s largest professional services companies, with a strong presence in India, may eventually marginalise its technology practices, say sources close to the development.
The other frontrunner in the buy-out deal being named is Deloitte Consulting India , a member firm of global consultancy major Deloitte Touche Tohmatsu.
Former ECS chief executive officer Ravi Bhamidipati has already joined PwC and is learnt to have played a key role in pushing through the deal. According to sources, the deal will enable PwC to keep its advisory services wing (called performance improvement team) ticking. However, there are apprehensions over the comfort level of PwC’s present team of consultants with the large number outside consultants slated to be inducted at the top level. The churning at PwC India following its takeover of the tax practice unit of Ambit RSM in April, 2007 is a case in point, say sources.
Ramesh Rajan, chairman and chief executive offier, PwC India, ducked queries related to the deal. Arvind Arora, the current CEO of ECS, did not respond to a questionnaire mailed by the Financial Chronicle. However, when contacted
in Mumbai over phone, Roopen Roy, managing director, Deloitte Consulting India, said, “We do not discuss acquisitions with the media. While it’s true that we are looking for takeover opportunities, we are extremely selective in our acquisitions.”
He said, “We have a strong team of 2,800 consultants in India and are not that desperate to buy any company on the block.” PwC has 700 consultants, including technology consultants, in the Kolkata centre and 200 in various other locations in the country.
ECS consultants, known as ‘external change agents’ are involved in assisting clients in different areas, including strategy, operations, human resources & change management, focusing on service -oriented industries, particularly banking and financial services BPOs and ITeS.
They also identify new business and technology trends, formulate and implement solutions for clients in industries like automotive, cement, chemicals, telecom, hospitality and healthcare, construction and real estate, entertainment and retail.