Preschool Chains Vying For A Bigger Slice Of The Education Pie

The preschool sector has gained in importance to such an extent that branding has come to play a significant role in not only providing world-class educational inputs but also expanding geographically in order to make business sense.

- Payal Gulati

When it comes to the education sphere, franchising has certainly emerged as the most successful model for geographical expansion. And it is gaining maximum traction in the preschool segment. So much so that the preschool industry has grown to USD 3.24 billion and branded preschools are contributing about Rs 45,000 crore. However, there still exists a huge gap between the scenarios of supply and demand of quality preschools, which presents a great opportunity for entrepreneurs. “Currently, the branded preschool market hardly commands a share of 28-30% and there is huge scope which needs to be explored,” believes Dharmesh Kapasi, Founder and President, Shanti Juniors.

Today, even preschools have two set of customers to satisfy – parents and children. And with modern-day preschool franchises offering unique facilities for overall development of the child, they are able to command a good franchise fee and equally better school fees. “Ideally most parents look for holistic development of the child and therefore academics become a primary feature. In addition, extracurricular activities, safety and hygiene are important parameters for taking a decision,” says Kapasi. In that sense, branded preschools have set infrastructure, structured curriculum, well-planned activities, etc.