Centrum Direct Expects 50% Sales Growth In Overseas Education Business
Centrum Direct, a leading Category II authorised forex dealer, expects the overseas students segment to grow at 50 per cent this season which begins next month.
Private equity majors New York Life and Jacob Ballas own around 30 per cent in the company, which is aiming to maintain its leadership position in the key segment.
"With over 20 per cent market share we've been the market leader for the past three years in the overseas education forex market, growing at 50 per cent.
"We are sure to maintain our leadership position this year too with a similar growth rate," Centrum Direct managing director and chief executive Guruprasad TC told PTI.
The next 45-50 days are the best season for us as the academic season starts in the West, he said.
He said for Centrum Direct, the forex business unit of diversified financial services firm Centrum group, overseas student clients are still keen on the US, Britain and Australia despite contrary reports in recent months due to visa curbs in these countries and these markets have been growing in high double digits.
In the $1.54-billion overseas education market, Centrum enjoys over 20 per cent market share with a billing of $342 million, Guruprasad said, adding the dealers like his company get a referral fee to the tune of 20-50 bps of the billing amount from banks.
He said most of his business come through Avanse Financial Services, an education-focused NBFC from the Wadhawan group, Credila Financial Services and Incred Finance, for whom Centrum is the official channel partner, handling almost 70 per cent of their businesses.
Guruprasad said the number of students going for overseas education jumped to 1.7 lakh in 2016, a steep rise from 1.03 lakh in 2015.
Another growth area for the company is the MICE market along with the honeymoon and wedding segments, which is worth over $2.5 billion, where it has been growing at 20 per cent and enjoys a market share of 11 per cent, or around $290 million, in billings.
It specialises in travel-related forex services, and is the largest revenue generator for the Centrum group. In fiscal 2016, it generated sales of Rs 3,893 crore with a profit after tax of Rs 22 crore, according to regulatory filings.
The firm operates money exchange counters at 14 airports providing forex solutions including forex currencies, travellers cheques and prepaid forex cards.
(PTI)
