Ajit Isaac on what Quess Corp demerger, the value unlocking and rationale

economictimes.indiatimes.com:

Ajit Isaac, CMD, Quess Corp, says “the demerger will unleash a simplified structure that the market has also been looking forward to, a renewed management focus on each of the businesses, a changed capital allocation strategy that is relevant to each of these specific businesses as well as a flexibility in approach to markets. Lastly, a clarity of investment thesis for investors coming into each of these specific demerged entities. That is why we did it and the advantages we can derive for each business.”


Tell me a little bit more about your demerger. What kind of prospects does it throw up, the value unlocking, etc, and what was the rationale?
Ajit Isaac: I will start with the third part of the question: what is the rationale? The key thing to look at here is that our business is now 17-years old and so we are no longer a startup. It is a mature business and over the years each of the business verticals have become scaled, mature, and market-leading entities and each one has its own rhythm, its cyclicality, and nuances.

Unlock Leadership Excellence with a Range of CXO Courses

So, one-size-corporate strategy does not fit all three businesses individually and there are nuances of capital allocation, compensation structures for staff, shared services structures for each of them, and IT investments that are required. That is