Mumbai: Learning solutions provider Everonn Education has signed a joint venture agreement with India’s National Skill Development Corp (NSDC) and plans to impart vocational training to students across the country over 12 years.
On Friday, Reuters had reported, citing a company source, that Everonn plans to train 15 million students at an average fee cost of Rs14,000-Rs18,000 per student.
The training will be imparted by Everonn Skill Development Ltd (ESDL), a unit of Everonn Education in which joint venture partner NSDC will own 27% for Rs141.5 million, managing director P. Kishore told reporters on Monday.
“The trainees would cover students ranging from those opting for non-formal training, those seeking employment after short-term or specialized courses, industrial workers seeking skill upgradation, unemployed youth seeking a career at entry level positions amongst others,” Kishore said.
In India only about 5% of students have access to any vocational training compared with about 60% in developed countries.
Shares of the company rose over 8%, before paring gains and ending up 1.81% at Rs681.95 in a weak Mumbai market.
The company expects revenues of Rs14,250 crore over 12 years from this venture, in which the total investment will be Rs154 crore to set up 271 skill development centres.
In addition, NSDC will provide a loan of Rs101 crore while ESDL will invest Rs38.27 crore in the venture.
Fee for the courses, which will cover sectors such as textiles, retail, hospitality, automobile, healthcare, construction, IT, basic engineering and multimedia, will range between Rs3,000 and Rs24,000.
In March, the company, which at present gets 60% of revenues from providing educational content to schools and colleges, had told Reuters it was looking to expand its skill development business.
“We have identified nine areas of skill development... We plan to build 100-120 skill development centres in FY12 at an investment of between Rs1.5-2.5 million each,” Kishore had said.
The plan is to open 1,000 skill development centres in three years.
On Monday, Kishore also said the company expects its skill development business to contribute 23-25% of its total revenues from less than 5% currently.
India’s $86 billion education sector is likely to see private players expanding on the back of increased government spending on education projects.
India plans to raise expenditure on education by about a quarter to Rs52,060 crore ($11.50 billion) in FY12, the finance minister had said in this year’s budget speech.