In an exclusive interview with Ashwini Kunder of myiris.com, Sanjeev Mansotra, chairman & Global CEO, CORE Education & Technologies says," We have made some significant progress in India and with a healthy mix of domestic and international projects, we are confident to strengthen our PAT in the coming years."Kindly explain in brief about CORE Education & Technologies. What is your outlook for the education sector? CORE Education & Technologies is an end-to-end, technology-enabled education solutions provider that aims to transform the education spectrum that covers Pre-K, K-12, Higher Education and Vocational Education. The company strives to improve the quality of human capital as well as the global learning ecosystem through innovation in order to produce better educational outcomes. CORE"s business is aligned across six key elements of education delivery (Teaching, Learning, Assessment & Intervention, Governance, Advanced Technologies and Consulting Solutions) that are designed to present CORE"s customers with comprehensive and end-to-end solutions.The outlook for the education sector in India for the coming years is very positive. Government is opening up to private participation and investment in the country"s primary as well as higher education market. The system is undergoing a major overhaul and government is bringing in lot of infrastructural and administrative reforms not only to improve its current state but also to take it to the next level.Developed nations, such as the United States, are desperately searching for solutions to address needs focused around learning outcomes, teaching outcomes and employability outcomes with an estimated market size of USD 750 billion. The private education sector is estimated to reach USD 70 billion by 2013 and USD 115 billion by 2018, enrollments in K-12 growing to 351 million, requiring an additional 34 million seats by 2018. This equals USD 80 billion at USD 2,400 a seat. The estimated Compounded Annual Growth Rate (CAGR) is of 14%.How do you see your CORE Education"s earning performance for FY13? With the new initiatives and strategic partnership in the emerging markets around the world, we are expecting a sustained performance for the coming year and are also confident of meeting our growth objectives. We have made some significant progress in India and with a healthy mix of domestic and international projects, we are confident to strengthen our PAT in the coming years.Last quarter CORE Education posted strong revenue growth. So do you think it will be sustainable going forward in FY13?CORE"s scalable business model has been driven by the Company"s ability to leverage its on-site / offshore model in the midst of integrating various acquired businesses. In addition, the Company"s track record of successful student outcomes has translated into a highly stable and recurring revenue base. This dynamic has led to high levels of visibility for future revenue from CORE"s existing client base as well as creating a reputation for CORE as a trusted partner in an industry that relies, in part, on customer referrals when chasing new business. Hence the Company is confident on a better than industry revenue growth in the future as well on an organic basis.What new tools/software CORE has implemented or using in schools and vocational training centres? CORE emphasizes greatly on technological innovation to make education more receptive, lucrative and comprehensive for both students and teachers. We have a wide range of products which will help in building a new paradigm in education.Company has alliance with University of Oxford to address India"s teacher training requirements and teacher capacity building. Company has also entered into a partnership with the Centre of Higher Learning, for cutting-edge Immersive 3D Visualization technology. CORE will bring modern 3D immersive learning by simulating real life experience for complex subjects on topics that are difficult for students to grasp, learn, experience and then apply.CORE, along with Texas Instruments, has created a first of its kind revolutionary integrated educational solution for math and science teaching called STEMPower. Based on TI-Nspire technology, STEMPower integrates real-world data, simulations, pictorial aids and multiple representations such as graphs, spreadsheets, equations and questions to encourage students to make connections, explore concepts and be active learners, thus empowering them to be successful. In the area of vocational development, our goal is to help bring constructive reforms in employability education creating pathways for innovation economy. Our range of vocation education and training offerings are suitable for various governments, corporate and private initiatives.CORE Education has forayed into Middle East couple of months back. Could you update us on the development on venture plans?CORE has recently announced its first international foray in higher education by entering Middle East. This venture is in partnership with the Government of Ras Al Khaimah (RAK) & Birla Institute of Technology, Ranchi (BIT), a premier engineering institute of India.CORE has established its Academic Learning Centre at Ras Al Khaimah Free Trade Zone (RAK FTZ) in an agreement with BIT, Ranchi, offering programs in Engineering, Architecture and Business Administration.The cloud computing concept is on a high rage in India these days. State the performance of the cloud solution industry in India and what is the outlook for the same? Cloud Computing services has become a global phenomenon and the same has been widely successful in India too. Small and Mid-sized companies are able to take advantage and are able to leverage their capabilities to the fullest. CORE has a host of Solutions & Services which are currently being offered to customers comprising of large education districts in USA and UK. We are developing and are focused on providing Cloud Computing services going forward to tap smaller districts and increase our organic revenue base. In India, the focus is on providing our Advanced Technology solutions where the end customers are schools within the purview of state governments. With the help of private participation, the state governments are able to upgrade the existing infrastructure. Our existing participation with the state governments through our Advanced Technology solutions would pave the way for the company to pitch its Cloud Computing services in the future.What are your expansion and capex plans for the coming years?We do intend to focus on our Advanced Technologies business in emerging markets and will continue to make investments in product development to augment our growth. âWhat is your message to the shareholders and investors of the company?We have been performing consistently and all our verticals have showed healthy performance on both absolute as well as margin parameters. The strong growth shown by business units across the globe - in US, UK and India as well as entry into new countries over the years (Africa, Middle East, Singapore, etc) - reflects company"s remarkable resilience and illustrates the benefits of concentrated organizational efforts over the past few years aimed at increasing stakeholder value.We are well aware of the existing challenges lying ahead of us, both in the developed as well as developing markets. CORE is strategically aligning its business model and is focused on targeting new geographies and verticals and the management is pro-actively working towards ensuring that the company is future ready.
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