Infrastructure company SKIL Infrastructure had, last year, forayed into the education sector by acquiring a stake of 22 per cent in Chennai-based Everonn Education.
The company has now tied-up with UK-based University of Strathclyde to offer management education in the country.
Chairman Nikhil Gandhi, in an interview with Piyali Mandal, says that going forward, the company also plans to offer graduate programmes in management and engineering. Excerpts:
What is the rationale behind venturing into the education sector?
Education has been my passion. We, as a group, have been trying to venture into this sector for long. We had bought a stake in Chennai-based Everonn Education and made significant investments in New Horizons, which offers training in IT, vocational and domain skills. Now, with the strategic alliance with Strathclyde Business School, we will be able to expand our horizons. Under the partnership with the University of Strathclyde, we will offer a two- year masters in management (MiM) programme from September 2011 at our campus in Greater Noida. We clearly see education as a sector critical to the country’s growth in the next 10-20 years.
Does this mean you would be looking at more such partnerships?
Yes, we are looking at all kind of opportunities. We have on our board some of the best educationists, and they have been trying to help us chalk out a proper plan.
Are you planning an initial public offering? If so, would the proceeds be used for your education ventures?
Yes. We plan to raise about $500 million (about Rs 2,250 crore) through the IPO. We shall, in another four weeks, file the details of the IPO. About one-fifth of the money raised through the IPO will be invested in our education ventures. We have already invested Rs 450 crore in our educational ventures. Going forward, we plan to invest another Rs 2,250 crore in the next three years. For the Strathclyde-SKIL B-school alone, we will spend Rs 200 crore in the next two-and-a-half years. We are looking at various options to raise money, including private equity.
Are you planning to carve out education as a separate entity from your infrastructure arm?
Yes, we are planning to carve out education as a separate entity altogether. We are working on this, and will soon take a decision on the matter.
How did you zero in on Stracthlyde University as your partner?
According to the joint initiative, Strathclyde will provide the academic inputs. It have been associated with education for 25 years, and has been involved in 10 countries. It also has accreditation from the three principal international accrediting bodies, the Association to Advance Collegiate Schools of Business, the European Quality Improvement System and the Association of MBAs (AMBA).
We will initially offer a two-year MBA programme. From the next year, we will offer a three-year bachelor of business administration programme as well. We are also planning to start a one-year executive MBA programme and, together with Strathclyde, will also look at engineering programmes.
