KARACHI: Language-teaching institute Berlitz Pakistan is gearing up for a listing on the Growth Enterprise Market (GEM) counter of the Pakistan Stock Exchange (PSX) in the next two years, Cordoba Logistics and Ventures Ltd (CLVL) Chairman Zeeshan Afzal told Dawn in an interview on Thursday.
CLVL is acquiring a 30 per cent shareholding in Berlitz Pakistan against an investment of Rs30 million, according to a recent regulatory filing.
Formerly known as Mian Textile Industries Ltd, publicly traded CLVL changed its business model last year and pivoted to logistics and startup investing. Its other startup investments are in online platform for shippers and carriers Trukkr, learning portal Investors Lounge and children’s clothing company Cotton Candy.
“We like to invest in ed-tech. Berlitz was very profitable in the pre-pandemic years. Corporate trainings came to a halt in Covid-19. But things are coming back to normal now as more and more corporate entities are going for employee training and development programmes,” said Mr Afzal.
He didn’t state the revenue or profit numbers for Berlitz, but acknowledged that its business was down to half the pre-Covid level. “We foresee a growth of four to five times in the coming years. Listing it on the GEM board will provide investors with a great opportunity to invest in ed-tech,” he said while referring to the newly established listing counter that’s dedicated to up-and-coming, riskier companies with high growth potential.
According to a recent research study by Technavio, the global corporate training arena is highly fragmented and consists equally of international and regional players. It expects the market segment to observe an incremental growth of over $46 billion between 2021 and 2026 worldwide, expanding at an annualised rate of 8.7pc.
Berlitz operates six centres in Pakistan with over 350 corporate clients. Most of these clients are multinational companies.
Mr Afzal said it was too early to write off the importance of brick-and-mortar–based learning platforms like Berlitz. A large number of Pakistanis still have no or inadequate access to the internet, he noted. “Having said that, I think technology will play a key role in the expansion of Berlitz into second-tier cities of Pakistan, including Sialkot, Faisalabad, Gujranwala, Rawalpindi, Peshawar and Multan,” he said.
Published in Dawn, July 29th, 2022
