PRIVATE EQUITY INVESTMENT IN INDIA WITH SPECIAL REFERENCE TO EDUCATION SECTOR by Archana Pandey
By: Global Vision Publishing HouseSingle Issue
Single Issue
- PRIVATE EQUITY INVESTMENT IN INDIA WITH SPECIAL REFERENCE TO EDUCATION SECTOR by Archana Pandey
- Price : 200.00
- Published on June 1, 2013
- Global Vision Publishing House
- Language - English
- Published na
About this issue
Indians spend approximately $44.8 billion on education while the global education market is approximately $2 trillion. Approximately 26% or $11.5 billion of the industry in India is private and offers investment opportunities. Market growth across the Indian private education sector is in excess of 10% per annum and this sector is looking like a major opportunity over the next few years. In an uncertain economic environment, private equity investors are finding the education sector attractive for long-term investments. From just three deals valued at $21.6 million in 2005, investment in the sector till October this year has increased to $238.7 million. Currently, PE investors are putting in money in technology-based education infrastructure and applications to offline assessment and training institutions and application vendors like coaching classes and pre-schools. Some of the recent notable PE investments are Blackstone Group investing around $42 million in Everonn System, Matrix Partners investing $22.22 million in engineering coaching centre FIIT JEE, and Franklin Templeton Asset Management investing $11.11 million in Career Point Infosystems, a competitive examination preparation company. Education is a service, which when provided at a high quality consistenly over a period of time, will cause the parents, students and the society to want to contribute more to the success of the institution. The service, delivered in an inclusive environment, can bring out the best in the people, which translates into higher profitability and parent and student loyalty. Therefore, it is quite possible to both deliver high quality inclusive education and provide superior value to various stakeholders including return to investors. Despite the structural and regulatory challenges, private players are evolving innovative business models to trap cash flows from the business and offer PF firms lucrative investment opportunities.
About PRIVATE EQUITY INVESTMENT IN INDIA WITH SPECIAL REFERENCE TO EDUCATION SECTOR by Archana Pandey
Global Journal of Business Management Vol. 4 No. 1, June 2010