The K12 segment in India offers the largest and most attractive opportunity for investors in the coming years
The K-12 segment is valued at $52 billion with a market share of 52 percent, as per a report by management consulting firm Technopak. With more than 1.4 million schools and 260+ million students enrolled, the current K-12 school system in India is one of the largest in the world.
To cash in on the growing opportunity in the segment, many renowned preschool chains have diversified into K-12 education and offer a lucrative franchise opportunity in this category.
However, the challenge is getting associated with the right kind of people, who want to make a difference to this country through education, believe industry experts.
Echoing similar views, SK Rathor, Founder & MD, Sanfort Group of Schools, says, “In franchise model, the success or failure of a brand depends upon the franchisee because he or she is the person who is carrying out the business in the assigned territory.”
Amol Arora, Vice Chairman and Managing Director, Shemrock & Shemford Group of Schools, adds, “Creating and managing a K-12 school chain requires a lot of know-how of the education industry which is limited to only a few players of the industry. It is a complex project.”
So, the key to becoming a part of this lucrative sector and overcoming the challenges it pose is aligning with the right brand.
Opportunity in tier II, III cities
The penetration of high-quality schools is still low in tier II and III cities, however, the demand for growth in these cities is exponential. The capital required starting a K-12 school in tier II or a tier III city is very low as compared to that required in metros. Even the operational expenses are also very low so, the break-even will also come fast.
“This industry needs slightly different approach, one need to have passion, dedication and patience to wait for profits. As a franchisor, we need to evaluate the potential of a person before signing the agreement,” Rathor concludes.