Lexicon - The Lexicon Schools

About Lexicon
• Lexicon Educational Group was established
in the year 1999, with the sole aim of
imparting high quality education in the field
of
management
education,
technical
education,
primary
and
secondary
education.
The
various
educational
institutions under the aegis of the brand
name Lexicon is today synonymous for
quality,
visionary
and
progressive
education. In a very short span of time the
trust has established a Business School,
CBSE schools, Pre-schools and Junior
colleges in Pune. The group is forging ahead
and has plans of opening branches in
selected cities across India.
Management
Chairman
Trustee
Vice-Chairman
Mr. S. D. Sharma
Educationist &
Experienced
consultant with 40+ yrs
exp.
Dr. Neeraj Sharma
M.Com., MBA, PGDM, Ph.D.
Mr. Pankaj Sharma
B.C.S., MBA, PGDM
Administration
Directors
Mrs. Deepti Sharma
B.S.L., LLB, PGDM
Director
Lexicon Kids
Viman Nagar * Kharadi * Koregaon Park
Dr. Monisha Sharma
B.Tech., MBA, PGDM, Ph.D.
Director
The Lexicon Schools
Wagholi * Hadapsar * Kalyani Nagar
Lexicon Mission, Vision & Values
Mission
To develop an all round personality of our students by:
 Providing child-centric learning.
 Encouraging critical thinking.
 Encouraging problem anticipating and problem
solving thinking.
 Celebrating diversity.
 Working towards every aspect, no matter how small.
 Working consistently as a team.
Vision
We are a globally admired group of
diverse educational institutions enabling students to
become valued citizens of the world.
Values
Approachable
We are open and responsive to ideas and
feedback from all our stakeholders.
Student Centric
Our students are our pride and central to all
our efforts.
Secular
We respect and celebrate all faiths equally.
Empower
We have the power to deliver on our
responsibilities.
Nurturing
We have a safe and encouraging environment
with opportunities to fulfil our potential.
Teamwork
We collaborate to bring out the best in each
other and achieve common goals.
Existing Educational Institutes
The Lexicon International School, Wagholi (CBSE Pattern)
Ranked as the Best CBSE School of Pune by ‘The Times of India’
Existing Educational Institutes
The Lexicon International School, Kalyani Nagar (CBSE Pattern)
Existing Educational Institutes
The Lexicon School, Hadapsar (CBSE Pattern)
Existing Educational Institutes
MILE – Management Institute of Leadership and Excellence
Post-Graduate Management Institute
(Approved by AICTE Govt. of India)
Existing Educational Institutes
Lexicon KIDS, Viman Nagar
A Pre-school & Day Care for kids of 1.6 years onwards…
Existing Educational Institutes
Lexicon KIDS, Kharadi
A Pre-school for kids of 1.6 years onwards…
Existing Educational Institutes
Lexicon KIDS Innovations, Koregaon Park
A Pre-school & Day Care for kids of 1.6 years onwards…
TM
Lexicon in the news…
TM
Education Sector in INDIA
Comparison of Overall Performance in INDIA
TM
Is this a Franchiseable model ?
CRITERIA
DESCRIPTION
Credibility
Lexicon Kids has Five branches in Pune and has been in
business from the last 6 years and has been running the
Schools successfully, with each School having an average of
about 200 plus students.
Refined successful Prototype Lexicon Kids is a system driven school and follows a preOperations
define curriculum .
This is an extremely unorganized sector where
kindergartens are being open in one bedroom flats and
other extremely small set ups. There are not too many
Market trends and conditions
branded players in the market barring a few. Therefore
there is tremendous potential for a reputed brand like
Lexicon offering genuine business model.
Differentiation
Brand known for quality education, innovative teaching
strategies, system driven school, self designed curriculum &
school compatible self designed ERP are the differential
factors for Lexicon Kids.
CRITERIA
DESCRIPTION
Documented Systems
Yes
Capital
Kindergartens are not a very high capital intensive business, therefore
requires low investment.
Transferablity of
Knowledge
Lexicon Kids is a system driven school so transfer of knowledge is
achievable which could be done in Pune centre, followed by a
respective Franchise Centre. This can be done in three weeks.
Commitment to
relationships
The team has been in business for a long time now and is a well
established and respected name. Their commitment to relationships is
undoubted.
Adaptability
Lexicon Kids mainly targets medium end customers. So for sustainable
business approach wants to expand in tier 1 and tier 2 cities and wants
to keep on providing services at affordable prices.
Return of Investments
Pre-schooling is a low capital intensive business, hence return on
investment does not take a long time.
Strength of
Management
As mentioned above, management has good operation experience
where all the people in the management are highly educated and are
experienced in the field of education.
CRITERIA
FRANCORP RATING
Credibility
3
Refined and successful prototype operations
3
Market trends and conditions
3
Differentiation
3
Documented systems
3
Capital
3
Transferability of knowledge
4
Affordability
2
Commitment to relationships
3
Adaptability
3
Return of investments
3
Strength of management
3
Score of the company
36
Not Franchisable
0-15
Moderately Franchisable
16-35
Definitely Franchisable
>35
TM
Competitions
What makes Lexicon different from other brands?
There are a couple of branded pre schools that are operational like Kidzee, Euro Kids, Tree House
etc. as compared to these brands, Lexicon Kids has its own competitive advantage in terms of
i.
Innovative Teaching Strategies,
ii.
System Driven Model,
iii. Self Designed Curriculum
iv. Faith of the current parents and students in brand ‘Lexicon’
v.
Experienced management with many years of experience in running the business along with a
background in publication industry.
vi. Innovative marketing strategy
vii. Effective Parent-Teacher Communication
viii. Awards and accolades – Recently awarded as the best CBSE school and also awarded in the top pre
schools in Pune.
ix. Customized child development programs and ERP for overall development of the child and the centre.
x.
Systematic approach for academic and financial audits
xi. Support of the Lexicon High Schools and a preference of admissions to students of Lexicon Kids adds
another feather to our cap.
Above mentioned are a few points that differentiate Lexicon KIDS as a brand from all the other brands
mentioned above.
TM
SWOT
Lexicon Kids is a Pre-School with the aim of imparting High Quality Education.
Strength
Experienced management with many years of experience in running the business along with
background in publication industry
System driven school with self designed curriculum
Customized child development program for overall development of the child
ERP and auditing systems in place
Weakness
Need to build brand in most geographical regions
Opportunity
Huge opportunity to tap with more than 242 million students who enroll each year
Expanding faster in less time through franchising and achieve economics of scale at
operational level
Opportunity to become value based national brand
Threat
Increasing expectations of parents from the institutions in terms of overall delivery, contents,
technological advancements and value added services
TM
Services Provided by Lexicon to the Franchise
Lexicon is dedicated to the success of it’s franchise network. Therefore, each Franchise can
expect consistent support from Lexicon. As a part of this continuing support, Franchise
center will supply you with the following :
1. Use of Brand
The right to use brand “Lexicon” which is fast growing, loved and most respected brand
in the field of education in Pune.
2. Site selection/ development of existing site
Lexicon will supply you the specific site criteria that defines a viable site for Lexicon
Kids center keeping all parameters in mind that will help in the growth of the center.
We will assist you in designing the existing site if any, which will be approved by us and
we will also assist you in designating a location for your Franchise be reviewing your
proposed sites before you sign a lease. Remember, the approval of Lexicon is required
before entering in to any lease agreements.
Services Provided (contd)…
3. Operations consulting
Lexicon will provide you with the consulting services in all aspects of your business
operations. An operations manual will also be provided and the same will be continually
updated. In addition, an Additional Director with the team of academicians appointed by
Lexicon will periodically visit the center for academic audit and to provide on going
assistance as needed. The resources of the entire organization are behind you to help in
finding solutions for your business challenges.
4. Study / Learning Material
Over years of experience and being into the field of education, Lexicon team has
developed study material along with student centric curriculum based on the theory of
multiple intelligences. The franchisee will receive this study / learning material along with
the curriculum from Lexicon.
To maintain the uniformity and the nature of franchised business, only such books, toys,
uniforms, study material and other materials shall be used by the franchisee as supplied
by the franchisor.
Services Provided (contd)…
5. Training & Assistance
The initial and periodic teachers training and training on all aspects of business
operations , brand guidelines , curriculum and assistance in recruitment shall be provided
by the Franchisor.
6. Ongoing Research & Development
Lexicon will conduct on going research and development and other enhancements to the
systems. Any new developments that are proven to be effective will be passed along to
you.
7. Lexicon Developed ERP
To prepare and develop an ERP, may not be that difficult, but to understand what is
required by the students, parents and teachers requires a lot of experience in the field of
education and also immense dedication . An ERP that will cater to the needs of all and
make life easy and operations simple comes from the experienced academic and operations
team of Lexicon. This ERP is being used effectively in all the Lexicon Schools and has made
working extremely effective and simple for all our students, parents, teachers and staff.
Services Provided (contd)…
8. Marketing
At Lexicon, we understand that a Franchise which is a Lexicon center will do well and grow
only if it has desired number of students. At Lexicon, we also believe that the growth of our
franchise is the growth of Lexicon. Keeping the above in mind, we will assist you in doing
and designing programs at the center which will increase the footfall at the center and
ultimately culminating into admissions. We shall also suggest and design not so expensive
medium of advertisement at the local level which will also help in getting the desired
numbers. Lexicon as a group has also tied up with Times of India as media partners and we
commit that Lexicon will spend close to ₹60 lakhs on advertisements with Times of India for
the franchisee, though not exclusive.
9. Helpline
We will provide you a phone number and an online help to assist you in operational issues.
Technical
Advantages
Lexicon Educare
• Lexicon Learning has created online solution known as
‘Lexicon Educare ‘ that completely manages the school
running. It is a great relief to the students, teachers,
admin and management of the schools.
TM
Roles and Responsibilities of the Franchise
As a Lexicon center, you have several distinct and overriding responsibilities.
Responsibilities towards your students
To provide a high quality and integrated early education
To support the growth of a child- physically, intellectually, emotionally and socially.
To make a positive contribution to the critical early stages of learning & development.
To deliver a solid foundation to ensure that children continue to flourish throughout their school
years and beyond.
To encourage a positive attitude and disposition to learn with an aim to prevent early failure.
To inculcate key learning skills such as listening, speaking, concentration, persistence and
learning to work together and cooperate with other children.
To develop early communication, literacy and numeracy skills that will prepare young children
for the next level.
To create an environment for parents and practitioners to work together in an atmosphere of
mutual respect within which children can feel secure and confident.
To maintain consistent center hours.
Responsibilities towards your Staff
Create a safe and pleasant working environment
Provide thorough trainings
Provide each individual with the opportunity for professional as well as personal
growth and learning
Be honest, fair and impartial.
Provide fair compensation for services rendered.
Provide venerable leadership through excellent management skills
Encourage open communication.
Conduct regular performance evaluations, giving recognition to those who excel and
making suggestions where improvement is needed.
Abide by the law as it pertains to issues of employment.
Responsibilities towards Franchisor
Maintain the quality standards of services to ensure satisfaction of all students
Subscribe to the guidelines and policies of Lexicon
Abide by the terms of the franchise agreement
Protect all proprietary Lexicon materials from scrutiny or casual review by competitors, visitors or
the public.
Submit all required reports accurately and on time.
The franchisor will pay Rs. 2.5 Lakhs plus applicable taxes one time as franchisee fee. And will
also pay 15% of the total revenue or Rs. 2 Lakh whichever is higher every year till he holds
Lexicon franchise.
The franchise will also pay Rs. 2 Lakh P.A. to Lexicon towards advertisement in Times of India for
which the franchisor would get advertisements in Times of India worth Rs. 60 lakhs (though not
exclusive)
Financials
•FINANCIAL RETURNS - The breakup of the charges that the School/Trust /Individual
needs to pay to LLPL is as follows. .. a sum of Rs. 2.5 Lakh plus applicable taxes one
time as franchise fee, Rs. 2:00 Lakhs or 15 % P.A. of the total revenue for that
academic year which ever is higher as royalty. All other expenses to be born by the
School/Trust. An additional logistic charges of Rs. 2:00 Lakh p.a. will be charged to
Schools/ Trust that are based outside the state of Maharashtra excluding Mumbai.
•The commercials are arranged in a way that all the fees term wise and any other
revenue collected will be deposited directly into the escrow account (joint tri party)
from which 85% of the same will be transferred to the account of the School/Trust and
15% will be transferred to LLPL account by the bank.
Financials - (Income)
Financial Information - The Lexicon KIDS
1st Year
3rd Year
Regular students
35
35000
1225000
80
35000
2800000
Day care
15
60000
900000
30
60000
1800000
Forms
45
500
22500
100
500
50000
240000
Other income
Other income
390000
2387500
5040000
2nd Year
4th Year
Regular students
50
35000
1750000
100
40000
4000000
Day care
20
60000
1200000
45
60000
3240000
Forms
70
500
35000
150
500
75000
294000
Other income
Other income
3279000
570000
7885000
1st year
2nd year
3rd year
4th year
INCOME
2437500
3279000
5040000
7885000
EXPENDITURE
2908125
2791850
3056000
4216750
PROFIT
-470625
487150
1984000
3668250