A game changer: Career Point's tech-based classrooms

Taking full advantage of the expanding internet penetration in India, tutorial services provider Career Point Infosystems has decided to open technology-based classrooms to impart education.

In an exclusive interview with CNBC-TV18, Pramod Maheshwari, CEO and CMD of Career Point says the new strategy of imparting education in rural and small towns through a franchisee model will be a game changer for the industry. The company is targeting to step up close to 50 franchise centres in northern and central parts of India through technology-enabled classrooms.

“To reach smaller towns, we are setting up company-owned centres or franchise centre that are not economically highly viable, but in-practice kind of model,” said Maheshwari.The capex required for setting up such centres is not too high as the company has already incurred a significant capex in setting up the headoffice at Kota . Moreover since there is no additional cost to be incurred in setting up the centres, the margins are close to 40 percent, said Maheshware.

The country’s education sector, pegged at $86 billion, is becoming a darling for investors with private players joining the space, increased government spending and fresh interest from foreigners and large funds who are pumping in money in services, technology and infrastructure.

Career Point was formed ten years ago by the Maheshwari family, who own 60 percent stake post public float in October 2010. It provides tutorial services for engineering and medical entrance exams and has presence through 33 centres half of which are operated by the company with the rest as franchisee centres.

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