The Kovid-19 pandemic spread by Corona virus infection has had a fatal impact on the education sector in India. More than 1,000 schools from KG to Class 12th are ready for sale across the country. In the next two to three years, about Rs 7,500 crore can be raised by selling them.
Vishal Goel, partner at Serestra, said, “Many state governments have fixed the fees collection fees while teachers are getting salary and other expenses. Due to this, the financial condition of private schools has worsened. He said that a large school chain had to reduce the salary of its staff by 70%.
Goyal said, ‘Due to confusion about how the situation will be in the future, there is no possibility of funding in these schools. Due to this, the difficulties of these schools have increased. Goyal has 30–24 schools in the company, ranging from KG to 12th standard. An investment of Rs 1,400 crore is required in these schools.
EuroKids Intrnational has more than 30 schools across the country. This school chain is also in the process of exiting the business.
Prajodh Rajan, co-founder and group CEO of EuroKids International, says, “Many times these schools are shocked by their promoters’ investment in different sectors. Schools also have to bear the brunt of their other businesses being affected.
Rakesh Gupta, partner at LoEstro Advisors, said that there are around 20 to 25 schools in Karnataka, Maharashtra and Telangana that are trying to sell. The company paved the way for the biggest school acquisition of last year. Then Hong Kong’s Nord Anglia Eductaion bought the school chain of Oakridge International, India. The chain had schools in Hyderabad, Visakhapatnam, Bengaluru and Mohali which were sold for Rs 1,600 crore. Now when it came to sell them, the buyers want to give it 30 to 40 percent less price.
In such a situation, the question arises whether the sale of schools will increase the cost of education? Rajan says, ‘I don’t think so. Starting a school twice may incur additional costs, but everyone working in this sector is sensitive to students. I don’t think the fee structure will cross a threshold. ‘