Cresco, Forum Engineering and India’s SRM Global Reach Reach Fundamental Agreement for Capital Investment in Indian Company Cognavi India Private Limited
Cresco Co., Ltd. (Headquarters: Minato-ku, Tokyo; Representative Director and President: Hiroshi Tominaga; hereinafter referred to as the Company) announces that Forum Engineering Co., Ltd. (Headquarters: Minato-ku, Tokyo; business development Cognavi India Private Limited (FE overseas subsidiary, hereinafter referred to as “Cognavi India”), an Indian company aiming at the global expansion of “Cognavi”, a human resource service company specializing in engineer Tsutomu Sato, FE (hereinafter referred to as “FE”). To expedite this process, we, FusionExcel and SRM Global Consulting Pte Ltd (currently being set up as a global business organization of SRM Institute of Technology, the leading private university in the Republic of India for producing top engineers, hereinafter referred to as SRM Global) have decided to Subscription of Cognavi India’s third-party allotment shares through capital investment, and signing of the basic agreement for the partnership (hereinafter referred to as the partnership).
■ The purpose and background of this cooperation
Since 2008, we have been involved in the development of systems such as FE’s Cognavi. As the first step of Cognavi’s global expansion, utilizing skills matching technology exclusively for engineers, FE will focus on the Republic of India (hereinafter referred to as India) and provide Cognavi career transition and new graduate services among Indian engineers. We plan to Cognavi India will be established in October 2022 for the purpose of business development, and the business structure will be launched in November to start service construction and business expansion.
As the world’s second most populous country, India is growing rapidly centered on the IT industry. We are formulating industrial promotion measures for 25 industries. India’s manufacturing industry has the same potential for rapid growth as the IT industry. Although the Indian government has set a target to increase the share of manufacturing in GDP to 25% by 2025, India’s manufacturing workforce accounts for 13% of the workforce, of which only 2% are engineers, so the demand for mechanical and electrical engineers is expected With the development of manufacturing industry, it expanded rapidly.
On the other hand, in terms of the supply of engineers, India has 1.5 million science and engineering students graduating every year, but the employment rate of new graduates is only 31%, and many science and engineering students have not embarked on the path of engineers. . This is the current situation. In the future, as manufacturing in India grows, it is hoped that effective infrastructure will increase the employment rate of fresh tech graduates and expand the employment possibilities of engineers.
In response to the challenges facing India, Cognavi India considered and developed a new Indian system utilizing skills matching technology specifically for engineers of Japanese origin. Our main business is operating a job portal dedicated to connecting engineers and developers. Operation of HR technical services.
To realize this main business, our company, FE and SRM Global will contribute to the development of the best service and manufacturing industry in the Indian market through capital investment in Cognavi India.as a starting point
With this agreement, we will start tri-company discussions, deepen our partnership in Cognavi India business development, expand our IT services and become a live company in the world as stipulated in the Cresco Charter (Corporate Philosophy). Will work hard to make it a reality.
■ Cooperation details
(1) Contents of the Basic Agreement
Along with FE’s additional investment in Cognavi India, which plans to run a job portal exclusively for engineers, and develop and operate HR technology services in India, SRM and SRM Global have agreed to make a new capital investment.
(2) Cognavi India’s third-party allotment of shares
Based on this alliance, FE, the Company and SRM Global intend to acquire newly issued common shares of Cognavi India in accordance with the laws of India as follows. The Basic Agreement will determine the fundamental matters of the Union and enter into a contract setting out the details of the final agreement concerning the details of the Union.
For details such as the number of shares to be acquired, please refer to the link below.
https://www.cresco.co.jp/redirect/news/221124_corp.html
