Tag Archives: investment

Govt may allow private sector investment in education

The Centre plans to allow the (for-profit) private sector set up educational institutions and tap the capital market, thus aiming to plug the funding gap in the education sector. In this regard, the Human Resource Development (HRD) ministry has asked Max India Chairman Analjit Singh to prepare a feasibility paper.

HRD Minister Kapil Sibal did so during a roundtable in New Delhi with Singh and other members, including Sunil Alagh, chairman of SKA Advisors, Hari Bhartia, co-chairman and MD of Jubilant Organosys, and Rajendra Pawar, chairman of NIIT.

Singh is one of the founder supporters of Indian School of Business (ISB’s) second campus at the Knowledge City, Mohali and has donated Rs 50 crore for the campus. Other founder supporters include the Bharti, Hero and Punj Lloyd groups.

Analjit Singh’s office confirmed the development, but declined to divulge details. Read More>>

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HDFC enters education loan with Credila buy

Your Education Is Our World

India’s largest mortgage company is diversifying into education loans. Housing Development and Finance Corporation (HDFC) has acquired a 41% stake in Credila Financial Services, a company that specialises in education loans, for Rs 10 crore. The transaction values the company at Rs 23 crore.
HDFC has acquired the stake from Merrill Lynch, which was an initial investor in the company, promoted by Anil Bohora and Ajay Bohora in 2006. Credila commenced business as an NBFC from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.

“Education is growing expensive and the demand for education loans is growing,” said VS Rangan, senior GM — treasury, HDFC.

In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future. Read More>>

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LG forays into educational hardware segment

Your Education is our World

LG Electronics has forayed into the education segment with technology business solutions modified to suit the needs of the sector. On Wednesday, it launched a range of products like network monitors, projectors and plasma touchscreen display boards suited for a classroom teaching.

“We are sure that with our new product line, we will be able to offer solutions catering to various needs of the educational sector. LG’s network monitors ensures lower total cost of ownership with a desktop PC being shared with 11 user monitors, thereby reducing electricity and maintenance cost,” LG Electronics India business solutions head R Manikandan said.

The company will work with education content and service providers to offer both business-to-business (B2B) as well as business-to-consumer (B2C) solutions. It hopes to add Rs 200 crore to the its kitty from the new education segment. It will invest a fifth of its $6 million marketing budget marked for the business solution division to market its new range.  Read More >>

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Mukesh Ambani now drills education sector for fresh biz finds

Your Education is our World

On November 17, when chairman Mukesh Ambani addresses Reliance Industries’ annual general meeting, he is likely to announce the group’s next foray: education.

India’s biggest business house is planning to launch a private university in line with the Ivy League institutions, says a company insider, though the contours are yet to be finalised. And for a country betting on its demographic dividend, that would be good news.

Already populated with corporates such as the Birlas and the Mahindras, besides private equity players and institutional investors, the sector can absorb a lot more by way of private investment.

According to an IDFC-SSKI report, Indians spend $50 billion annually on private education. The four segments of the education market — plus two, higher, vocational and supplemental — present a $80-billion opportunity by 2012. It is expected to grow at a CAGR of 16%, says a CLSA Pacific study. Read More >>

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PE firms seek mega deals in education, healthcare

Your Education is our World

Although private equity (PE) firms remain optimistic on investment opportunities in sectors such as education and healthcare, the deal scenario does not show an encouraging trend.

Data from VCCEdge, VCCircle’s financial research unit, shows divergent trends in these two sectors in the first nine months of 2009.

Across nine deals in each sector this year, PE investments in education tripled to $108 million (Rs503.2 crore) in January to September against $35 million in 2008, but healthcare suffered a steep fall.

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Milestone Religare invests Rs 250 mn in IMS Learning Resources

Your Education is Our World

Milestone Religare Investment Advisors Pvt Ltd, a joint venture between Milestone Group & Religare Enterprises is pleased to announce the completion of its first tranche of Rs. 250 million investment in IMS Learning Resources Pvt Ltd. This investment has been made from the India Build-Out Fund – 1, which is a Rs. 600cr sectoral private equity fund that focuses on education & healthcare.

Rajesh Singhal, Managing Partner at Milestone Religare Investment Advisors Pvt. Ltd, who will be joining the board of IMS said, “We are proud to be associated with IMS the leading education player in India. Given that the education sector is on a positive growth path, we feel that IMS can play a major role in shaping up the same and take advantage of this tremendous opportunity. We are extremely excited for this partnership with IMS and are very happy to partner with a very capable management team”.

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New wave of education

Your Education is Our World

Everonn Education Ltd launched its `Educating India’ initiative. Under this, the firm will set up 200 K-12 schools, 500 skill-development centres, 10 engineering colleges and 27 business schools across India in the first phase.

Founder P Kishore said many children are deprived of quality education because of weak economic and social circumstances. “This has led us to believe that we should help them.”

This initiative involves setting up of institutes across various segments, including K-12 (kindergarten to Class 12), skill development (learning-for-earning) and higher education segment.

In the K-12 part, pre-schools, block-level schools, those in district headquarters, high-end and international schools will be set up.

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