K12 SCHOOLS TRIGGER A NEW GROWTH ERA

An investment in knowledge pays the best interest: So said Benjamin Franklin, one of the founding fathers of the United States. The quote stands true, both literally and figuratively, for India’s education growth story, especially the cash-rich K12 segment! In fact, the K12 segment has been applauded as one of the most heated segments in the education space, since starting a school is a sign of prosperity and the fact that it enables to leave behind a legacy. The franchising model is working wonders with schools in the Indian education system. As the reality stands today, franchisees have a large amount of probability to enter the market and get going in a flash due to a familiar brand identity, established business arrangement and services which have already been market-seasoned. Here are some more reasons that have helped trigger the growth curve:

Franchising allows a brand to achieve rapid growth within a short period of time. There has been an advent of brands being attracted to the franchising business. “What attracted us was the experience of running schools and having the largest intellectual repository in India,”says Bindu Rana, CEO, The Millenium Schools. The brand foresees faster growth with additional market penetration in Tier II and III towns. It is powered by the Millennium Learning System and plans to have 100 franchise institutes in the next five years.

Similarly, adopting the franchising business model in 1995, Billabong International School has become a premium chain of K12 schools, with 20 years of experience in education and a network of more than 100 schools across 30 cities in India, Dubai, Maldives and Doha. “We endeavour to continuously innovate to make sure our franchisee is ahead of the competition – thereby fostering strong loyalty towards our brand,” founder Lina Ashar states. Today, KKEL supports 50 centres in India with operations across 17 cities, and has an international presence in Dubai and Maldives while continuing to grow rapidly.

Looking for like-minded partners to expand through North and Central India, another major player, Seth M,R Jaipuria School, aims to open 50 new schools in the coming 3-4 years. The brand foresees major growth in Tier II and III cities as the penetration of high-quality schools is still low there. Jaipuria Group is making headway on all three counts - increasing enrolment and access, reducing dropouts once enrolled, and ensuring right delivery - in a consistent manner.

Raising the Bar

MWS has been at the forefront of all new innovations in academics and extracurricular activities. “Our brand believes in ensuring that each and every franchise school becomes successful and the most sought after school in the location. This is our key business mantra to scale up since successful franchisees attract more prospective investors,” says the founder. Billabong High School, on the other hand, works together with its partners and hand-holds them in every aspect – from selection procedure and guidelines for principal and teacher interview to parent management to infrastructure development, maintenance, technology management, etc.

In a short span of four years, Seth M R Jaipuria School has emerged as a strong player in the schooling space. “We have been recognised by most stakeholders as providing the most in-depth solutions to school promoters, high-quality education and activities for students, and a choice place of work for both teaching and non-teaching staff,” Vice President Kanak Gupta says. The response for the brand name has been better in comparison to other brands which have otherwise been present in the market for decades.

Brand	No. of Stores	Investment Required	Area Required	Expected ROI	Expected Breakeven	Preferred Cities
Billabong High School	110	Rs 10-15 crore	2 acres		5 years	Tier I and II
The Millennium Schools	42	Rs 5-7 crore	3-5 acres	15%	3 years	All cities with population of 3 lakhs and above
Seth M R Jaipuria Schools	14	Rs 5-7 crore	2.5 acres	35%	3 years	Pan-India