SanjeevMansotra, Chairman and Global CEO, Core Education & Technologies Ltd, a first generation entrepreneur, Sanjeev Mansotra formed CORE in the year 2003. Sanjeev Mansotra vision has powered CORE’s growth strategies in the education domain, worldwide. Under his able leadership, CORE has become one of India’s largest global education companies offering best of breed end-to-end solutions in more than three continents across the world. The company’s products and solutions spans all stages of education – K12, teachers training, higher education & vocational training courses and generated a turnover of about Rs. 1091 crores during the FY 2010-11.
CORE Education & Technologies Limited (CORE) is an Indian multinational in the education space with operations in the US, the UK, the Caribbean, Africa and India. CORE, a first generation entrepreneurial venture by Sanjeev Mansotra, provides integrated products, solutions and service provider in education. CORE’s offerings cover compliance, assessment, ICT, content, teacher training, vocational training, examination management system, language skills and has globally impacted more than 85,000 schools, 31 million students and trained over 100,000 teachers.
Speaking with Yash Ved of IIFL, Sanjeev Mansotra says “I believe that the next wave of explosive growth for CORE will come from India and other emerging markets.”
What are your plans in the education space?
We have a global footprint with operations across the US, Africa, UK and India. In the US, we are focused on assessment and intervention and we have 6% market share. In Africa, we are focused on Systems Integration and ICT, which is driven by local needs of the market.
In India, ICT in Government schools has made a significant contribution towards revolutionising teaching and learning platforms in government schools in India. We witnessed an unprecedented year which saw us bag contract for over 9,000 schools under the ICT projects in India. This is a testimony for CORE’s exemplary implementation track record with Governments across the world.
I believe that the next wave of explosive growth for CORE will come from India and other emerging markets. With a unique offerings portfolio catering to the entire continuum of education, CORE is uniquely poised to build new paradigms in Education.
In what we see as a culmination of our experience, expertise and efficacy in offering educational solutions, we look to establish Institutes of Excellence in K-12 and Higher Education segments. We are planning to set up 10 IB schools in urban and semi-urban areas across India.
What is the current order book ?
Our current order book position stands at Rs. 11bn with Rs. 6bn coming from India.
Brief us about your capex plan for FY12?
We have a capex requirement of Rs. 10bn over the next 36 months.
Brief us about your financials?
The company recorded consolidated revenues of Rs. 10.91bn for the year ended March 31, 2011, and Rs. 2.98bn for FY11. On a YoY basis, the consolidated quarterly revenue grew by 24%, whereas the figure for year FY11 was up by 29%.
EBIDTA (consolidated) for the year ended 31st March, 2011 stood at Rs. 4.09bn (Rs 2.91bn last year), an increase of 41%. The company’s net profit for FY11 shot up to Rs.2.25bn, showing an increase of 31% over the previous year.
The basic consolidated EPS (Earnings Per Share) for FY11 stood at Rs. 21.79, up from Rs.18.71 for the last fiscal year.
Brief us about your revenue in percentage terms?
About 77% of our revenue comes from education space, 8% from ERP. About 7% of our revenue comes from Logistics space, while the balance 8% of our revenue comes from Consulting space.
What is your shareholding pattern?
Our promoter holding stands at 44%.
What kind of hiring are you looking at?
Currently our employee strength stands at 1,200 plus globally. We are planning to hire approximately 200 more employees in FY12.
Recruiter recently mentioned that Indian education solutions provider CORE Education & Technologies has acquired UK education recruiter ITN Mark Education for around $25m (£15.4m), through its subsidiary Core Education and Consulting Solutions (UK).
CORE Group, chairman and global chief executive, Sanjeev Mansotra, says: “ITN Mark contributes towards the ultimate goal of making teaching globally competitive in each and every sector. ITN is already focused on imparting industry-relevant training to the teachers. We are sure with this acquisition CORE will scale new peaks in its mission to take education to its next dimension.”
ITN Mark was acquired from UK talent management solutions provider Ochre House.
Ochre House group managing director, Chris Herrmannsen, told Recruiter: “The business was bought by a listed company and they had to make a stock exchange announcement last night. There will be a formal announcement later today.
“ITN Mark Education is a specialist education recruitment business. Core Education, the acquirer of the business, is pretty large multi-national education services business. From that perspective, the team at ITN Mark are delighted to join forces with Core on the basis that their sole focus is education and services around schools and teachers.
“It is an opportunity for ITN Mark to work in an environment that is dedicated to that industry sector. Core has a very large international footprint so they can expand more quickly. They also offer complementary services into recruitment and resourcing, and so can deliver synergies around their education team.
“It does not mean they [ITN Mark] are in any way changing. They will not rebrand their services; they will not effectively change what they are doing.
“Ochre House was formed in 2006 through a management buyout. We acquired a range of subsidiaries. Effectively, we operate in three categories. We had the ITN Mark business dedicated to the public sector and, in particular, education.
“We have the commercial recruitment segment and we have an RPO business. This realigns the Ochre House business around the commercial markets. If you look at the remaining business — Parkside and Ochre House talent management — we are now solely focused around provision of recruitment-related services including talent management and talent outsourcing but particularly around a commercial customer base as opposed to a public sector base.”
Commenting on the deal Tim Evans, managing director at Boxington Corporate Finance, told Recruiter: “It is another positive signal for the return of the M&A market. It is a reminder of the importance of finding both an overseas and potenially non-recruitment buyer to get the best price.”