$100 bn investment potential in education sector over 5 yrs: Experts

-


NEW DELHI: The country's fast-growing education sector holds a
potential to attract a whopping $100 billion (about Rs 4.57 lakh
crore) investment over the next five years driven by demand for
skilled professionals and need for infrastructure development, say
experts.

Sector experts are upbeat about the growth visible now and believe it
could turn into one of the most preferred sectors for investment by
venture capitalists and private equity players going forward.

"The education sector presents an investment potential of $100 billion
over the next five to six years. Venture capitalists and private
equity players will have a role to play in the expansion going
forward," KPMG director Strategic and Commercial Intelligence Dushyant
Singh said.

Moreover, experts feel by enabling private participation in education,
private players can have a significant role in expanding the sector.

According to education and training provider Zee Learn, which is a
division of ETC Networks, there is huge growth potential in the sector
with increasing demand for educational institutions.

"The sector is not well capitalised and there is need and potential
for private investments in the space. To tap this growth, Zee Learn is
also planning to set up 20 more schools and 660 pre-schools in the
country this year," Zee Learn CEO Sumeet Mehta said.

The sector offers opportunities to increase capital as education still
lacks good-quality infrastructure in the country and investors have
the opportunity to build it, experts believe.

"The sector has various drivers for growth, including very low school
going population, need for educated and skilled professionals and
infrastructure requirements," Singh said.

However, there are some regulatory hurdles as an educational institute
in the country has to be a non-profit making organisation.

Singh said investors can become part of the sector through investments
in service and infrastructure providing for schools and institutions.

Moreover, there is a need for large players in the sector as the space
is currently fragmented, he added.

Meanwhile, Zee Learn's Mehta also said robust hiring will take place
in the sector in the coming years as the expansion in the education
sector is increasing the need for school teachers and other staff.

According to official statistics, the education sector faces a
shortage of 8,00,000 teachers in the primary and upper primary schools
and over the next 10 years, secondary schools would have to recruit
5,00,000 teachers.

Source: E.T

--
"Invest in Knowledge, Share with Others, Grow Together"

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more