en-Japan Acquires Recruitment Agency NewEra Consultancy

@Tilak

Japanese recruitment and post employment solutions provider en-Japan Inc has acquired 60% in New Era India Consultancy Pvt. Ltd, a job placement firm for INR 345 Mn, making it a subsidiary. As per the agreement , en Japan and en Asia holdings Ltd., a consolidated subsidiary, will acquire 60.0% of the total issued shares of New Era from Founder Arvind Sehgal, the largest shareholder of New Era (95%). The residual 40% will be acquired by the company in 2016 to make it a wholly owned subsidiary. The buy would enable en-Japan to access the New Delhi based company’s clients and further enhance its transactions particularly with the Japanese firms. Bridge & Sun Partners, a Tokyo based investment banking firm advised en-Japan on this deal. Established in 2000, New Era is a recruiting company targeting high-class professionals in India with core focus in introducing IT professionals with a large number of global clients. In addition to its head office in New Delhi, New Era has offices in major cities (Bangalore and Mumbai) with plans for further expansion in India. The 331 men strong company had a topline of INR 157 Mn with a operating income of INR 27 Mn and net income of INR 20 Mn for the FY13. enJapan was also established in 2000 and engages itself in offering Recruitment service and post-employment support, Internet- based job information service, job placement, employee training, H&R consulting, aptitude tests in Japan, Australia, South Korea, Singapore, Vietnam, Hong Kong, Thailand and China. As 67.6% of the population in 2025 will be in the working-age population, recruitment services are expected to expand and enJapan seeks to capitalize on this opportunity. As per MyHiringClub.com's survey, FMCG would lead the chart and is expected to generate 1.5 lakh new jobs, followed by healthcare (1.33 lakh), IT and ITeS (1.21 lakh), retail (86,700) and hospitality (83,400). Banking and financial services (61,400), manufacturing and engineering (51,500), education, training and consultancy (42,900), media and entertainment (42,800) and real estate (38,700) are also expected to create job opportunities. The number of Japanese companies launching business in India has doubled over the last five years. By 2013, 1,072 companies had entered the market in India. Some of the recent inbound Japanese deals include: Japan’s staffing firm Outsourcing Inc had acquired a majority stake of 51% in Bangalore based staffing and HR outsourcing services company Alp Consulting and its subsidiary Datacore Technologies Private Limited for $5 Mn. @NuGrid_Consulting Private Limited had been acquired by Japanese HR service provider Recruit Holdings through its wholly owned subsidiaries - RGF Hong Kong and RGF HR Agent Singapore for nearly R150 Cr