Can Schools On Budget Make Out Sense For Business?

Posted by:
Published: Wednesday, March 28, 2012, 15:26 [IST]
 
Budget Schools And Their Business Sense

Budget schools or the erstwhile government or municipal schools, aim to provide affordable education at minimum cost. Those schools, as the players term it, will address the segment at the bottom of the pyramid. So, what is so common between Jerry Rao, Shantanu Prakash, the Galas and Satya Narayana R? They are selling the concept of budget schools in our neighbourhood.

Partho Dasgupta, the President of Educomp Schools said, “Budget schools have been existing. But these are mostly the government schools. However, it is now that professional players are becoming a part of it. It is very large market and will see good growth in the coming years”.

“The bottom of the pyramid concept works here. The total number of students at the budget school level is very large and the opportunity it throws up is huge, Educomp says setting up a Universal Academy costs anywhere between Rs.5 and 10 crore, depending on the location. However, Educomp investment are much lower with the asset-light model we use”, he added.

Priya Krishnan a CEO of VBHC Education Services said “We plan to bring this concept on every complex. We have eight projects at the moment and by next year, we will have one school operational each in Mumbai, Chennai, Bangalore and National Capital Region. Setting up a Sujaya School costs around 10-11 crore. The schools follow thw central Board of Secondary Education (CBSE) format and charge a fee of Rs.2000 per month or Rs.24000 per annum per stduent. The school plans to have 40% of stuents via the scholarships it provides and 60% on fees”.

The school, with over 50,000 students in the affordable education segment, are run under the Gowtham Model schools and Orchids brands. However, It is a function of looking at the concept from the perspective of an opportunity cost. “One can stretch the asset by using the same land and building and generate adequate volume. If many not be a very profitable venture, but will certainly be self sustaining and may attract investors too in the long run”, says Krishnan.

Source : Business Standards

Write a Comment


Ten international universities to open campuses in Sri Lanka

Colombo: Sri Lanka is opening up its public university system attracting significant investment with plans to allow 10 private universities to operate locally by 2020, an official said Wednesday. Sunil Jayantha Navaratne, secretary in the country's higher education

Tips to manage your money while in college

Most often than not, saving and managing money while in college works out to...

3,400 candidates to write GCET 2014

The Directorate of Technical Education (DTE), Goa is all set to conduct Goa...

How many MBBS and B.Tech seats are available in...

A total of 3 lakh candidates are expected to take the Engineering,...

Delhi University announces B.A, B.Sc and B.Com...

University of Delhi, has announced the undergraduate three year semester...

Mysore University announces UG examination time table May-June 2014

University of Mysore, Mysore, has announced the Undergraduate (UG) examination time table for the session May-June 2014. University is all set to...

Strict exam norms by Gujarat Technological University

Ahmadabad: Gujarat Technological University (GTU) has set up stringent exam rules for the examinations which will begin from 19th May onwards....

Course Finder

Location
Course