Wrong report about UST Global
By Anil Philip

The leading English business newspaper, The Economic Times, had on Monday, 25 August 2008, carried a story on UST Global, which is Kerala’s largest IT services company. With over 5500 employees and offices across four locations in India and many overseas, UST Global is part of the over $6 billion Comcraft group owned by the NRI Chandaria family based in Geneva. ET had reported the possibility of the Comcraft Group selling its stake in UST Global.

This report came at a time when the UST Global had its ninth anniversary celebrations over the weekend. This report has caused major concern among the employees and clients of the company.  The top management of the company clarified that the ET report is completely baseless and its irresponsible media reporting filled with erroneous facts. Indu Chandaria, a board member of Comcast categorically denied any truth in the article, “The Comcraft group is deeply committed to being a long-term investor in UST Global”. UST is set to announce a new centre in Santiago, Chile and the expansion of its Philippines’ centre. The company is also looking at acquisitions in India and abroad. 

This article had several mistakes regarding UST, including its revenues which are substantially more than double of what has been reported. As per the top officials, neither Comcraft nor the management of UST is involved in any discussions for sale of any portion of equity in UST. Further, Citigroup does not have any equity position in UST, as reported by ET. According to Sajan Pillai, CEO UST, “the Comcraft Group and UST Global took this up with The Economic Times, and the Chief of Bureau has personally apologised to us for this misrepresentation of the facts by the reporter”.

(This report was done by the Bangalore Bureau of ET)