In a major thrust to philanthropy initiatives of India Inc, the Shiv Nadar Foundation, the private philanthropic initiative of founder and chairman of HCL Shiv Nadar will make investments to the tune of $1 billion by 2019 in its various initiatives in the education and arts space. The foundation, which has completed 20 years in philanthropy, has committed Rs 3,000 crore towards educational initiatives and expansion programmes over the next five years.
Besides this, the foundation has invested over Rs 1,800 crore till March 2013 with an additional expected investment of up to Rs 1,220 crore till the end of the current financial year (FY14), taking the total investments by the end of March 2014 to Rs 3,020 crore.
Hence, the total investment will be around Rs 6,000 crore or close to $1 billion in the next five years.
?Close to 20% of our family?s wealth will go to the foundation and it will continue to be family-run. We expect the Shiv Nadar University to consume R300 crore annually for the next 10 years,? said Nadar, while sharing the foundation?s financials for the first time on Tuesday, adding that income from fee is only 15% of the outlay with the rest being contributed by the founders.
The investments will go into the foundation?s existing initiatives, including VidyaGyan, SSN Institutions, Shiv Nadar University, Shiv Nadar School, Kiran Nadar Museum of Art (KNMA) and Shiksha ? which is an upcoming initiative in education to eradicate illiteracy.
The future investments will go into expanding the two VidyaGyan schools in Uttar Pradesh, six new SNS institutions, besides a permanent facility for the KNMA.
The foundation revealed that the total cash outflow during 2012-13 stood at R398.7 crore compared with R353.6 crore last year. Significantly, the corpus of the foundation rose manifold from R1.5 crore in the year ended March 31, 2012 to R132.9 crore now.
While 57% of the investments till March 2013 was made on infrastructure, 25% was done in works of art.
Employee expenses went up by 59% compared with last year due to an increase in headcount from 631 in 2011-12 to 848 in 2012-13 to support higher education enrollment.
