HR services company Ma Foi today said it is planning to exit the staffing business for better opportunities.
The city-based company, which had been in the business for over two decades, was venturing into non-staffing solutions like strategy, research and education verticals, with an investment of Rs 25 crore spread over a period of three years, Ma Foi Management Consultants Founder K Pandiarajan told reporters here.
The firm became a part of the Netherlands-based Randstad Holdings in 2008. However early this year, Nasdaq-listed US-based human resource outsourcing solutions provider ADP (Automatic Data Processing) acquired payroll business of Ma Foi Randstad for an 'undisclosed amount'.
"Ma Foi-Randstad will be becoming Randstad India soon... That will be a separate announcement," Pandiarajan said.
Declining to reveal further, he said Randstad India would begin operations in India soon for "staffing solutions".
However, he said he would be continuing to remain as its "Chairman".
Commenting about the exit, Ma Foi Management Consultants - Director and wife of Pandiarajan, Latha Rajan said it will be a "smooth transition".
"We were having 17% of the stake [in Ma Foi-Randstad] and will be transiting it," she said.
"We believe we are venturing into a much wider area...," Latha said.
As part of their foray into the new business Ma Foi would retain its name in the new company -- christened as 'Ma Foi Strategic Consultants Pvt Ltd'.
"It is a new beginning for us," Pandiarajan said, adding the Rs 25 crore investment spread over a period of three years would help the company consolidate its position in the segment -- strategy, research and education.
"We will work in the area of strategic consultancy," he said adding they intend to set up a chain of management schools -- Ma Foi Development Programme School (MDPS) under this proposal.
"To start with, we will have the MDPS here in Chennai and Madurai. It is expected to begin [operations] by July, 2013," he said.
Asked about their future plans, he said they would have pan-India presence in the new entity besides setting up of the proposed management schools in major cities across the country.
"We have valuated 10 locations for the management schools," he said.
