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India – Monster exploring acquisition to power rural business plan

29 July 2014

Sensing an improvement in business sentiment, job board Monster is exploring acquisition opportunities in India as part of a business plan to push ahead in Tier II and Tier III cities, reports The Hindu Business Line.

Tier I includes major metropolitan cities such as Bangalore, Chennai, Delhi, Kolkata, and Mumbai. Tier II cities includes Ahmedabad, Amritsar, Jaipur, and Pune. Tier III cities are small cities across India. 

Sanjay Modi, Managing Director for India, South-East Asia, West Asia, and Hong Kong, commented: “We are looking at the mobile technology space as we find the market moving to the smartphone.”

The US-headquartered Monster Worldwide Inc. announced revenue of USD 808 million in 2013. The company also sold 49% of its subsidiary in South Korea to a private equity firm. According to Mr Modi, the company is now cash-rich.

Mr Modi said the company is scouting for possible acquisitions in the context of a resurgence in the job sector. The Monster Employment Index showed a +19% year-on-year increase in May, indicating broad-based optimism across 27 sectors.

“Software services exports is a key market for Monster, as employers are keen on recruiting more local talent to feed the USD 118 billion IT sector. The only sector where there is some reluctance to hire is the automotive industry. With incentives announced in the budget, there could be more traction in this space,” Mr Modi predicted.

For Monster, the challenge is not competition from other online job sites but the dearth of candidates with specific skills. As companies expand into more rural areas, employers are struggling to find candidates with suitable levels of experience.

Mr Modi advised that Monster’s business plan for rural penetration and acquisition prospects will crystallise in two months.