Ansal API is set to hive off its education business subsidiary, Knowledge Tree Infrastructure Ltd (KTIL) that runs the group’s education business, into a separate entity. The company’s board of directors has given its approval for the de-merger of KTIL from the company, people close to the development said. At present, KTIL is a wholly owned subsidiary of Ansal API.
A person with direct knowledge of the development said that the company is still in the process of working out the valuation of KTIL. Once it is done, the price will be arrived at for KTIL at which the Ansals will buy out the stake in the company. When contacted, the company spokesperson confirmed the move to hive off KTIL but did not divulge more details.
KTIL, which currently runs two institutions for higher education, Ansal Institute of Technology and Sushant School of Art and Architecture, is also restructuring its set up by creating three business verticals-one each for higher education, vocational training and school education.
As per the plan, while KTIL will go on its own to expand in the higher education segment, it would take the lease-revenue model for expanding its school education vertical, K-12, in a big way. It plans to construct 40-50 schools in various cities across northern India at an estimated investment of Rs 750-850 crore. These schools will come up mostly in the townships Ansal API owns.
While KTIL will make available the school building and other infrastructure, its partner company will run the institutions. It has already entered into agreements with Educomp and GEMS of the West Asia for leasing out schools.
KTIL is awaiting the new government policy for finalising its expansion plans in higher education segment. It has collaborations with some of the US and UK-based universities, including North Decota State University, for Ansal Institute of Technology (AIT), which offers courses in engineering and management. It is currently in talks with some of the foreign institutions for offering similar courses in management.