Fairfax Financial Holdings-controlled Quess Corp has announced its decision to demerge into three separate entities. The demerger aims to enhance strategic focus and accelerate profitable growth for each entity. Quess Corp will continue to concentrate on workforce management, while Digitide Solutions will house BPM solutions, insurtech, and HRO business. Bluspring Enterprises will be responsible for facility management and industrial services.

The demerger process is expected to take around 12-15 months. Once completed, all shareholders will receive one additional share in each of the newly formed companies, for every share they currently hold in Quess Corp.

Ajit Isaac, the chairman of Quess Corp, stated that the demerger will provide each company with a sharper focus and enable them to offer a compelling investment proposition to their respective investors. He emphasized that the decentralized structure at Quess has paved the way for this demerger, allowing each entity to have its own strategic priorities and capital allocation strategies.

Isaac further clarified that there will be no need for an initial public offering (IPO) to list the new entities on the stock market. The capital from the main company will be transferred to the new firms without requiring an IPO.

Quess Corp currently has a workforce of 440,000 employees, with 6,000 of them in the technology sector and 6,000 working outside India. Isaac is optimistic that the structural changes resulting from the demerger will contribute to the formalization of the labor pool in India. He highlighted that India’s labor force, which is approximately 563 million, is undergoing a rapid formalization process. Since 2017, around 72 million new PF (Provident Fund) subscribers and 95 million new ESIC (Employees’ State Insurance Corporation) subscribers have been added. The gig workforce in India is projected to grow to 23.5 million workers by 2029-30, marking a threefold increase by the end of the decade.

Isaac expressed confidence that the company’s revenue will reach $2 billion by the end of the 2023-24 financial year. Quess Corp has achieved a revenue compound annual growth rate (CAGR) of approximately 20% over the past eight years, surpassing the growth rate of the overall economy, which has ranged between 4.5% and 6% in the last five years. Isaac believes that the company will maintain a growth rate of around 16% to 17% in the next three years.

Prem Watsa, the chairman, and CEO of Fairfax Financial Holdings, expressed his belief that each of the newly formed entities will emerge as market-leading players in their respective sectors. Watsa stated that Quess Corp, since the initial investment by Fairfax Financial Holdings in 2013, has become one of the largest domestic employers in India and has the potential to become a significant global business services player.

Isaac provided insights into the scale of Quess Corp’s HR and insurtech businesses. The HR division handles payroll systems for nearly 1.3 million payslips every month, making it one of the largest payroll systems in India. The insurtech business underwrites more than $3 billion of insurance premiums in the property and casualty space. Additionally, the customer lifecycle management division manages around 500 million calls annually. Isaac emphasized that Digitide Solutions, which currently generates approximately $300 million in revenue, has the potential to become a $1 billion business within the next three to five years.

For more information, please visit: [Quess to Split Business into 3 Entities](https://timesofindia.indiatimes.com/business/india-business/staffing-firm-quess-to-split-business-into-3-entities/articleshow/107803841.cms)