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CL Educate ties with Vidya Mandir Classes to expand IIT-JEE, NEET biz

This alliance led partnership shall leverage the strengths of the two brands and organisations for a common vision and purpose of leadership.

November 16, 2021 2:32 IST | India Infoline News Service
CL Educate Limited has entered into a Strategic Collaborative Partnership with Vidya Mandir Classes Limited (‘VMC’) to expand IIT-JEE and NEET coaching businesses. The Phase I of this Collaborative initiative is planned to be rolled out in Mumbai, Pune and GCC markets as well as for the online premium programs. Details are as given hereunder:

Background:
Vidya Mandir Classes (known popularly as VMC) has been one of the original leaders in coaching for JEE for over four decades. CL Educate brings its marketing strengths, network organisation and online machinery while VMC brings its respected brand name, legacy of strong results, academic prowess, process and systems in their respective roles. The complementarity of geographies will also enable rapid expansion into less exploited markets.

This alliance led partnership shall leverage the strengths of the two brands and organisations for a common vision and purpose of leadership in the Science Under Graduate opportunity of a few crore students including 5 Million in the JEE and NEEFT itself. Focus will be to try to build on strengths of partnership led growth into the 700 plus districts of India over the next decade.

The broad terms of CL- VMC Collaborative agreement are given below:
1. Alliance for IIT-JEE and NEET opportunity CL and VMC have decided to come together to expand VMC network in Mumbai, Pune and GCC by leveraging combined strengths of both organisations.

2. In phase one, Mumbai, Pune and GCC markets to be targeted VMC programs shall be taken to the CL Centres at Mumbai, Pune and Dubai in phase one. Newer geographies / cities will be added vide addendum as and when agreed mutually by both the organisations.

3. VMC to be the academic partner and CL to be the GTM partner CL shall be appointed as the Business Development Partner for online programs of VMC by leveraging its own Sales & Marketing infrastructure, platform, processes etc.

4. Lock-in-period There will be Lock-in-period of 3years valid from the execution date till end of the fourth academic year.

5. Commercials arrangement between the two is on a revenue share / royalty basis.

CL is extremely positive that this strategic collaborative agreement would add significant business value over the next few years to the CL Business.

At around 2:31 PM, CL Educate was trading at Rs109.20 apiece up by Rs5.2 or 5% on the BSE.

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