With most of its group companies not doing well owing to the global meltdown, the Rs 3,000-crore Yash Birla Group is foraying into the education segment in a full-fledged manner.
The company has chalked out a plan of investing Rs 500 crore by 2012. The group, which has a cash reserve of Rs 200-250 crore, will fund the investment through internal accruals and debt in phases.
The group plans to come up with 200 pre schools, over 100 K-12 schools and around 15 specialty colleges under the flagship brand, Birla Edutech, over the next three years.
The company, which is looking aggressively at the education segment, has eight listed entities in India and plans to list Birla Edutech by 2011-12.
“We are looking at setting up pre-schools, K-12 schools and multi-specialty colleges in different sectors like architecture, engineering and fashion designing,” said Yash Birla, chairman, Yash Birla Group.
“We have lined up several pre-school ventures. Some are our own and some are in partnerships. We have already acquired land and are looking at Rs 100-crore investment in the first year, and by 2012, for the execution of our plans in the education segment, we will invest around Rs 500 crore,” Birla said.
At present in India, the preschool market totals $1 billion a year and it could double by 2012.
Two of its pre schools, under the name of Globe Tot’ers, have started operating from June this year in Mumbai and will expand to other parts of India and abroad. Moreover, six of the K-12 schools are under various stages of construction in Mumbai, Nasik and Bangalore. Out of the planned K-12 schools, some will be operational from the academic year of 2011.
Birla Edutech is also setting up 20 teacher training institutes which will be imparting training to teachers at different stages.
?We have our own teacher training programme, as we feel that there have been a lot of changes as far as education is concerned,? Birla said.