Investing in India’s Education Sector
India is a land with limitless opportunities to expand when it comes to K-12 education sector. With Government showing higher enthusiasm than ever to attract FDI in K-12 education domain along with rising FDI investments, at Erocon School Consultants you will find your best advisors and partners for following groups to planning to have presence and successful entry into Indian Market
- Foreign institutions willing to buy Equity in Indian Education Groups/ Education Services Company
- Established International education brands wanting to enter Indian markets.
- International curriculum partners looking to enter in Indian market and looking for channel partners
- NRI willing to set up model schools in their Hometown
We are equipped with the necessary capacity, experience and capability to guide interested investors in the education domain while maximising returns on their investment into this upcoming progressive segment. Starting from Guiding our clients about the Indian markets along with Market Research till acquisition of affiliations post setting up of new school projects, our association for our clients span over 2-3 years ensuring to lay a strong foundation for the new entrants in the education domain in India. Erocon having 30 plus experience in the field of K-12 school education segment are the right partners to guide for Indian Market Entry by any group interested to invest in the limitless potential of the Indian Education Sector.
We guide our clients from overseas broadly on the following aspects
- Finding partners/Tie-up for both equity and non-equity forms
- Due Diligence reports before transactions
- Appraisal and Awareness on all necessary laws, regulatory environment, tax and other government incentives.
- Screening of partners/acquisition targets
- Market Research, Feasibility study and location analysis (including market analysis, market potential, ROI, Project Budget, Revenue Projection)
- Brand Entry and Market Entry Strategy
- Franchise expansion plan
- Investment Plan and Expansion Plan for the brand in India
- Affiliation Compliances
- Turnkey Consulting and Advisory Services for New School Setup
- School Design and Architecture Services for upcoming projects
India’s education sector offers a great opportunity with approximately 29 per cent of India’s population being between the age group of 0-14 years. India’s higher education segment is expected to increase to Rs 2,44,824 crore (US$ 35.03 billion) by 2025. India has been ranked 34 out of 100 countries in English Proficiency Index 2019. The education sector in India is estimated at Rs 6,40,891.3 crore (US$ 91.7 billion) in FY18 and is expected to reach Rs 7,06,587.9 crore (US$ 101.1 billion) in FY19. Increasing internet penetration is expected to help in education delivery. As of December 2018, internet penetration in India reached 46.13 per cent. As of March 2019, there are 66 million internet subscribers in India in age bracket of 5 to 11 years.
Education sector in India is an established priority domain of the Indian government. The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the education sector through the automatic route since 2002. The sector has attracted cumulative FDI worth US$ 2.7 billion till date. Indian education sector witnessed 18 merger and acquisition deals worth Rs 342.4 crore (US$ 49 million) in 2017. Even in the 2018 and 2019 cumulatively, India saw investments around US$ 1 Billion for take over of reputed education brands such as Oakridge International School, Laureate Education Group, Chirec International School, Euro Kids chain including Euro Schools, Euro Kids Preschool and Day Care, Billabong International School and Kangaroo Kids Pre schools and ongoing discussions of US$ 1.1 Billion take over of Sri Chaitanya Group of Schools.
As per 2020-21 Budget, it is anticipated for India to have the largest working age population by 2030 and education hence is being given the necessary attention by government to develop pool of skilled human resource pool. In addition, steps are being prepared to attract more FDI in the education sector thereby making education sector in India to be one of the most lucrative domain for investments both from Foreign and Domestic sources.
India has over 250 million school going students, more than any other country. It also has one of the largest networks of higher education institutions in the world. Number of colleges and universities in India reached 39,931 and 993, respectively in 2018-19. India had 37.4 million students enrolled in higher education in 2018-19. Gross Enrolment Ratio in higher education reached 26.3 per cent in 2018-19.