Aptech to unlock value in Chinese Joint Venture

Aptech, the largest information technology training companies in India, is planning to unlock the value of its equal joint venture in China by transferring its share to a holding company and listing it in US. Post listing, Aptech would hold 22% stake in the holding company.

Within seven years of entering China, Aptech has gone a long way, and today its revenues and margins are higher than India operations. It entered China in 2000 through a 50:50 joint venture with a local partner Beijing Jade Bird to set up Beijing Aptech Beida Jade Bird Information Technology Co. The JV has set up 250 centres and has cornered ~33% of the market share. At Rs 170-180 crore of revenues, Chinese operation contributes 40% to Aptech’s consolidated revenues. Operating margins in China is 40% and in India is 20%.