US-based $17-billion Manpower group on Tuesday bought 67% in New Delhi-based Grow Talent with an agreement to buy the remaining 33% in the next three years.
The deal size is pegged at under $10 million, though Manpower refused to confirm it. Grow Talent had revenues of about $4 million last year. According to the deal, Manpower Inc. will form a JV with Grow Talent through its subsidiary, Right Management.
Grow Talent’s founder Anil Sachdev, who is offloading 44% of his 66% stake in the company, will continue to remain the JV’s managing director. Grow Talent’s other investors — Analjit Singh, Yogesh Andley, K Balasubramaniam and KK Nohria — will offload about 23% of their 34% stake in the company.
With this buyout, Manpower plans to focus on the Rs 500 crore HR consulting pie in India. Currently, Hewitt, Grow Talent, Mercer, Ernst & Young and PriceWaterhouse Coopers are the biggest players in HR consulting in India"
Update: I guess I jumped the gun :-) Actually the acquisition is by Manpower Inc. HR consulting subsidiary Right Management Consultants. In which case, it makes much sense, giving access to Grow Talent to grow globally and pitch for Indian consulting efforts with existing Right clients in India and in Asia. Ignore the earlier part of the post below :-)
One of Right's strengths is its career transition services for individuals and executive coaching services. The market is still underdeveloped for that in India, and Grow Talent can leverage that for the future. That would be an interesting thing for the market.
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I really can't see that logic for this deal.
Temping or Recruitment firms don't really get into the consulting market. There's too much perceived conflict of interest there.
Why dilute your core brand attribute by focussing on too many areas. Manpower's buy in ABC was very understandable. Temping is still in early days in India and getting a piece of the executive search business was a great strategy. The services are quite linked.
But- HR consulting? What sanctity would your advice have if a client knew that you could be the beneficiaries of acting on some suggestions?
Growtalent is more well known for the survey they do with Businessworld and the Great Places to Work Institute. More perception of conflict of interest there too.
Interestingly, one of Growtalent's principal consultants, Nalina Suresh had left GT sometime back and moved to EMA Partners, a global executive search firm.
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