Group to enter education, invest Rs 100 cr to begin with
The Tata group is making an aggressive foray into education, which it has identified as one of the six areas for future growth.
The other areas are business support services, an unmanned vehicle project, project management in the defence sector, logistics and producing advanced materials for aerospace and medical sectors.
The education foray is led by Tata Industries, which is providing the necessary software, hardware and electronics equipment, besides connectivity to schools.
The group is looking to invest over Rs 100 crore to begin with. It has already tied up with 40-50 schools. According to the plan, standardised education content will be loaded on a central server from which it will be delivered to schools.
At first, the curriculum will cover classes five to twelve and also offer content to improve the skills of teachers. The company will also look at tying up with government schools to deliver digital lectures.
Tata Industries will also provide schools the flexibility of choosing subjects and offer packages which may include all subjects, a group of subjects or even one subject.
“The model does not replace the teacher in the class but complements him. Also, due to differences in the quality of teachers, a standardised content will help even teachers augment skills,” said a person close to the project.
Tata Industries is clear that it will not set up schools. Company sources say the project will make money, though it may not give huge returns.
The Tatas will be joining companies such as Educomp which are foraying into the space. Educomp runs both digital and physical schools and Extramarks.com. HDFC is looking at small towns to either set up schools or take over defunct boarding schools.
Industry experts expect penetration of smart classes among private schools to rise from 8 per cent at present to 12 per cent by the end of 2012.
Tata Industries is also leading a move into business support services, which will go beyond call centres. People in the company say these will include services for media companies and for motor and third-party insurance administration. The company is already providing telecommunications support to Tata Sky and is looking for work the insurance sector regulator insists should be undertaken by a third party.
The Tatas have already funded an unmanned vehicle of some former students. The product could be used in surveillance and disaster management. Sources say the idea is to support a new concept.
The group has also made a foray into defence project management for providing technology and software to companies supplying defence equipment. Under the rules, foreign companies that get defence orders have to buy 30 per cent inputs (in value terms) from India. The group plans to benefit from this.
“We are not going to position ourselves as buying agents but take responsibility of delivering what is required,” said a source.
