Covid effect: Over 1,000 schools up for sale across India
HYDERABAD: Over 1,000 KG-Class 12 schools in the country are up for sale, hoping to pool in an investment of close to Rs 7,500 crore (roughly $1 billion) in the next two-three years, with the Covid-19 wave hitting India’s education sector hard.
Mostly on offer are private budget schools with an annual fee cap of Rs 50,000, shows data compiled by Cerestra Ventures, market leaders in the education infrastructure sector. About 80% of school education in India is catered to by this category of institutes.
“Many state go nments have put caps on fee collection even as schools are expected to pay salaries to teachers apart from bearing other overhead costs. This has made staying afloat a struggle for these institutions,” said Vishal Goel, partner, Cerestra. One large school chain had to slash non-teaching staff salaries by up to 70%, he added.
“Even funding has become difficult to come through with financial institutions hesitant on lending, owing to lack of clarity over how the situation will pan out. That has added to their woes,” he added. Goel’s company has an expansive portfolio 30 to 40 KG-Class 12 schools that it is eyeing to acquire at an estimated investment of roughly Rs 1,400 crore.
Also scouting for quality assets are established education companies with “strong strategic interest”, said Prajodh Rajan, co-founder and group CEO of EuroKids International. The chain, which currently has 30+ KG-Class 12 schools in India, is also aggressively on the lookout.
Between Karnataka, Maharashtra and Telangana there are at least 20 to 25 schools that are looking for prospective buyers, said Rakesh Gupta, managing partner of LoEstro Advisors. The company had facilitated one of the biggest school acquisitions of 2019 — of Oakridge International by Hong Kong-based Nord Anglia Education.
LoEstro Advisors的管理合伙人拉凯什•古普塔说，在卡纳塔克邦、马哈拉施特拉邦和特伦加纳邦，至少有20至25所商学院正在寻找潜在买家。该公司促成了2019年规模最大的学校收购之一——总部位于香港的Nord Anglia Education收购了Oakridge International。
But will this trend increase the cost of education? “I do not think so. Though reopening a school might involve some added costs, everybody in the sector is sensitive towards students. I do not see fee structures crossing a certain limit,” said Rajan.
The acquisitions might bring more stability to India’s education, feels RMC Reddy, managing director and CEO of Schoolnet India Limited, a pioneer in education technology. “Since these financial institutions and school chains have deeper pockets, it will also help reduce the technological divide that currently runs deep between premier schools and budget private schools,” he said.
教育技术先驱Schoolnet India Limited的总经理兼首席执行官RMC Reddy认为，这些收购可能会给印度的教育带来更多的稳定性。他说:“由于这些金融机构和连锁学校财力更雄厚，这也将有助于缩小目前一流学校和普通私立学校之间的差距。”
R Venkatesh Govind
This proves Modi Durbar is "improving" education. Whatever Modi Durbar touches, is burnt to ash.
The effect of the Corona pandemic across the world is going to hit all sectors, including education.
Even the teaching through television fallen flat as the interest in students lost without teachers
Who requires education. An illiterate with fake degrees can become P.M
..if a school wasn't a business, they would still be open. Though can't blame them, lights and water ain't free.
Very Good,they are daylight robbers,with ridiculous fees,money makers ,not educators at all!
Ppl laughed at manmohan singh yet he did his duty,, chaiwala messed up yet they feel nationalist lol
lol, so you mean to say chaiwala spread covid19?
Schools were restricted in taking fees by the go nment making them bankrupt; online education is a farce as most students have no smartphone, tab, laptop or desktop and no internet; covid 19 has already destroyed one year school calender, many schools for lack of fund to give teachers salary
Rampur Ka Laxman
Feku hai toh mumkin hain !!!! Close and sell school properties and make all kids chaiwallas and pakoda sellers
Only the profits of the schools reduced. They didn't go into any loss...... But thanks to the boss for bringing the nation to such pathetic state.
No need to panic. Modiji clearly mentioned "be atamneerbahar". Open your own school and start reading yourself. You are the student, you are teacher and you are Principle.
Fekuchad jumalawale distroyed indian economy . Inprecidented 29 percent unemployment
Very misleading headline. The schools mentioned here are not only private, but are the ones that charge tution fees in lakhs.
Primary schooling has taken a bad hit in the Covid pandemic. Hope the education does not fall below present levels.
This is not Virus fallout . This was bound to happen . And this has happened with many industries also . It is fallout of arrogant and ignorant and corrupt administration by Modi Government in last six years . Wait for still worsening news .
These 1000 schools are on sale but it is all nehru’s fault .
pvt schools, hospitals are day light robbers