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Arthur Andersen values PCL's Mindware at Rs 71 million

Mindware's Indian operations have been valued between $46-55 million while the outer value of the division, including its overseas subsidiaries and operations have been put at $71 million.

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Ajit Chakravarti, executive vice-president, Mindware, said disagreement over the valuation has delayed the submission of the report by Arthur Andersen.

"Our estimate is higher," he said, adding that Mindware, however, has no plans to go in for a second valuation.

"We have to go ahead with our plans which involve Mindware being hived off from PCL."

He said two offers to buy out the Bangalore-based Mindware and other offers to take a majority share had been rejected. Talks are now on with a few overseas companies to offload about 15 per cent of Mindware's equity.

Mindware is wholly-owned by PCL.

Chakravarti said plans to invest $8 million in the next 18 months have been drawn up and that Mindware needs an infusion of funds for this purpose.

So far, investments of Rs 700 million have been made in Mindware, of which Rs 200 million has been in its international offices. From a turnover of Rs 350 million in 1996-97, the company expects to reach the Rs 1 billion this fiscal.

This year is Mindware's second full year of operations and will be the first year in which it will see profits, he said.

Chakravarti said the plan to hive off Mindware has little to do with the problems PCL itself is beset with.

"Yes, the shadow caused by PCL's difficulties have affected Mindware a bit. But hiving off Mindware will not solve PCL's problems. In fact, Mindware, once hived off, can raise funds on its own even if a joint venture does not happen," Chakravarti said.

Mindware is looking at opening two more centres in India, at Madras and Pune and at starting small development centres in Japan and the UK by end of 1998.

It now has six wholly-owned subsidiaries; in Germany, Japan, Singapore, South Africa, US and the UK. The company is in the process of identifying a few more business partners to market its products.

Mindware employs 1,000 people of whom 250, at present, work in its overseas offices.

- Compiled from the Indian media

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