Wednesday 9 November 2011

RIL Secures Stake in Digital Education Company


Reliance Industries Ltd has secured 38.5% of stake in Extramarks Education Pvt. Ltd, the education company. It made its investment through its unit Infotel Broadband Services Ltd.
Extramarks is one of the leading educational companies in Noida, which provides learning and teaching opportunities through digital media. Infotel is already one of the leading broadband companies, so this deal would help them to expand their working area.
It was in June 2010 when Reliance Industries decided to buy 95% of the Infotel Broadband shares for 48 billion rupees and now, it wants Infotel to increase its online business.
It is the second investment in the education sector by Reliance Industries Ltd. as their first venture was the Dhirubhai Ambani International School.
RIL knows the fact that education sector is one of the business sector which would not witness any inflation blink, so they want to create a brand name in the sector. They also have plans to introduce their soon to come 4G technology in education sector.
Narayan Ramaswamy, the head of education practice at KPMG affirmed that education and business make a great combo and it could be further strengthened if more business giants decide to enter in this segment. He further asserted, “Corporate have always been involved in education and the interest has only grown over the years. There is a huge demand and supply gap when it comes to education”.
The education business in India was of $40 billion in 2008 but by 2018, it would not be less than $115 billion, said consultation firm Technopak.
Infotel would soon launch its high speed internet services in the country by the start of next year, said the spokesperson of the company.

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