New Opportunities for Investors in Education Segment

Reetika Bose
Reetika Bose Dec 21 2017 - 3 min read
New Opportunities for Investors in Education Segment
Because Of The Rapid Advancement In The Education Sector Happening Over The Last Two Decades, Investors are utilizing their Time And Money To Help Make Education Effective.

India's education system is often reckoned as one of the major contributors to its economic development. K-12 school system plays a crucial role in understanding the ways of life, from the beginning till maturity. The rapid advancement has been noticed in education sector over the last two decades. Government and Entrepreneurs are investing their time and money to help make K-12 education effective. As per the Union Budget 2017-18, the education sector has pegged an outlay of Rs79,685.95 crore for the current year, which was Rs 72,394 crore in 2016-17.

Innovation in K-12 education

Classroom learning has moved beyond textbooks and blackboards. These days, there is an increasing focus on the use of digital, mobile, multimedia, smart tablets, audio-visual and experiential based study materials.. The e-learning market will grow at a CAGR of 17.4% till 2018, says a Ken Research Group report.. There is a tremendous scope in the edutech space, which is expected to cross US$70 billion by 2018 and is catching investors’ eye. K-12 school system starts using digital education, which helps them to increase awareness of new technology among students to cope up in the tech-savy environment.

Opportunities are in abundance from abacus training to language schools, e-schools, fashion schools, aviation schools etc. Besides playschools and K-12 education, child development programs, supplements, drama groups and vocational education are riding high on the opportunity radar.

Today, supplementary education is observed as an organised market, comparing to the conventional belief when coaching or tuitions were needed during board exams or engineering/medical preparations, etc. Gradually, parents have realised the importance of developing the child skills from the pre-school level, thus there is a strong need of adapting hands-on learning tools, skill development at the pre, middle, higher and vocational levels.

Emerging field of education

For vocational & supplementary education brands, franchising helps these brands to reach students and prospective entrepreneurs who wish to start their own venture in education sector but lacks an organised platform. The combination of franchise route and an organised brand provides the same for franchisees.

As per the company official, CADD Centre largely expects to have franchise partners who are serious about their entrepreneurial experience/journey. “Though we do not have any part-time opportunity in our business module, but we seek housewives, ex-servicemen or businessmen or students who have just passed from colleges as our potential franchisees. We have a big list of franchise partners who are successful with a complete focus on the franchise business. We emphasise on a franchise partner devoting his fulltime on this business, and following the brand guidelines, to see the best result.”

Headquartered in Chennai, CADD Centre is the training arm of the 26 year old CADD Centre Group. The education chain boasts itself to be the only company in India to offer an end-to-end solution to CAD users, specialises in Computer Aided Design (CAD), Computer Aided Engineering (CAE), and Computer Aided Manufacturing (CAM) with its presence across the globe.

On the opportunities available for franchisees, Dr Karan Deshmukh, Executive Vice President, Business Development, Brain Checker Techno Services, adds, “In 2014, Brain Checker started its franchise model. In the last eight months, we have reached 140+ franchise units and over 32 Master Franchisees. The company has set itself a target of having 5000 franchise centres and 500 master franchisees in India by 2019. It may seem a lot but if you compute the figures keeping in mind the Indian population, we would not even have one franchise per 1000 Students. Our objective is to provide these services to all students from across the strata of our society with an aim to create professionals who love what they do.”

Brain Checker, another revolutionary concept in career counseling has also come up with its new brand- Mid Brain Plus, which focuses on increasing performance of children. The brand believes Mid Brain Activation is the process of activating mid-brain area which is generally dormant after the age of six.

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