Navneet to invest Rs. 450mn in School management service company

16 Sep

 

Navneet has been the dominant market leader in the content and stationery segment for over five decades clocking revenue of over Rs. 5500mn and PAT of over Rs. 780mn in FY2011.

The board of Navneet Publications (India) Ltd. has approved a strategic investment of over Rs. 45 crores in Sequoia capital backed K-12 Techno Services Pvt. Ltd. K-12 is a Hyderabad based school management company servicing around 67 state board schools run by several trusts across Andhra Pradesh with over 50,000 students in the affordable education segment and run under the Gowtham Model Schools (GMS) and Orchids brands. In addition to state board schools, K-12 also manages 8 junior colleges and an international school. K-12 had earlier raised capital from marquee investor – Sequoia Capital last year for expansion and consolidation of its activities in Andhra Pradesh. In current financial year K-12 has signed management contracts with more than 15 schools at different locations in AP. With this latest round of funding, K-12 plans to launch its services across five different states and is targeting to manage over 200 schools in the next 3-4 years.

 

 

 

 

 

K-12 has been offering school management services such as school administration, curriculum development, infrastructure development, teacher recruitment & training, transport solutions, branding &marketing of respective school, technology services, to help improve the quality of education delivery by educational trusts in Andhra Pradesh. Navneet and K-12 will also work closely with schools in Maharashtra and Gujarat to extend school management services to schools in these states using Navneet’s market strength and K-12’s expertise in this area.

 

 

 

 

 

Navneet has been the dominant market leader in the content and stationery segment for over five decades clocking revenue of over Rs. 5500mn and PAT of over Rs.780mn in FY2011. Its publishing business is predominantly in Maharashtra and Gujarat and this investment in K-12 provides it with an excellent opportunity to develop and launch its products and services for the Andhra Pradesh State Board over the next couple of years. This investment also enables Navneet to diversify from its publishing and stationery business and enter the fast growing direct education segment.

 

 

 

 

 

Sunil Gala, President – Finance, Navneet Publications Ltd. said “The affordable school segment is a large market opportunity which remains largely untapped across the country and with the partnership with K12, we see an excellent opportunity to service this market and improve the quality of education delivery across the country at affordable prices which is in line with Navneet’s philosophy of making quality education affordable”.

 

 

 

 

 

Chairman of K12, Venkatanarayana said “Navneet’s experience, brand, relationship with the education fraternity for over 5 decades will further enable K-12 to tap newer geographies relatively faster as we look to expand outside AP. We look forward to our next phase of expansion with the continued support of Sequoia as financial partner and Navneet as a strategic partner to the Company”


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