- Largest student population in the world with over 135 million students.
- India’s school-aged population is estimated to be 37% higher than China in 2025, hence making it the largest addressable market for education services consumers in the world.
- Literacy rate @ 61%, 172nd in the world.
- The overall market is estimated more than US$50 billion.
- Has a total market of 1.2 million schools, including 950,000 government schools.
- 87% population has an access to primary education within 1 km from their habitation and 78.1% has access to Upper primary education.
Literacy rate in 15 years plus age group in %
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Distribution of School by ownership |
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| Source: CREDIT SUISSE REPORT |
Source: CREDIT SUISSE REPORT |
Illiterate popn in 15 years + age group in mn
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Distribution of student enrolment |
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| Source: CREDIT SUISSE REPORT |
Source: CREDIT SUISSE REPORT |
Public spending on education as % of GDP (2004)
Source: CREDIT SUISSE REPORT
Industry Overview
• Infrastructure
- 3% primary schools and 2.4% upper primary schools did not have any building.
- A Shortage of over 600,000 classrooms in 07-08.
- Less than 11% of computer penetration
India Broadband penetration
Source: CREDIT SUISSE REPORT
• Dropout
- A discouraging 50% of children exit the education system over time
Government Initiatives:
- The government has increased the allocation to the sector by 20% to Rs. 344 Billion for the year 2008-09.
- The amount would be spent under various schemes like Sarva Shiksha Abhiyan, Kasturba Gandhi balika vidyalaya, mid day meal and teacher’s education.
- All the educational schemes are funded through Implementation of Education Cess.
Public Private Partnership Route:
- Improve quality of education by getting content and certain school infrastructure designed and implemented by private companies.
- It will provide an end-to-end solution from setting up the infrastructure to teacher training, including systems integration, content developments and learning delivery.
- Most of the teachers do not have any prior training and begin teaching in school without any orientation, to meet the gap; companies like Educomp Solution and Everonn System provide various products that enhance the capabilities of teachers.
Government Regulations:
Education is a social need and is not considered as a profit making exercise, therefore:
- Private schools can be run only by trusts/educational societies that are non-proprietary.
- The savings, after meeting the expenditures of the school, has to be only utilised for further promotion of school.
- Selling of schools from one trust/ society to another is prohibited.
Major Players
1. Educomp Solutions
Fastest-growing education Solutions Company in India, is a leader in providing end-to-end solutions to Government and Private schools. It is Market Leader for K-12 (kindergarten to class 12) Education, in India. Educomp has a client base of PPP projects of over 6000 schools including large projects from several state governments. In the US, the company’s presence is through its fully owned subsidiary, Educomp Corporation, which is based in Ventura, California.
Products
- SmartClass, a private school initiative, provides end-to end services like multimedia-based education (primarily Mathematics and Sciences), infrastructure, teacher training and content development in variety of regional languages, providing School computers, LAN networking and Plasma Screens for classrooms, accounted for 49% of total revenues in the period FY2008.
- ICT, a government school initiative, provides IT education , multi-media education software and courseware to the students in various regional languages, infrastructure along with full time instructors at the school.
- Professional Development (teacher training) is Educomp’s tie-up with Intel, Microsoft, and Wipro to provide training and upgrading the skills of teachers in India. Educomp has trained 300,000 teachers during FY2008.
- Retail Tutoring and Websites- Educomp’s has set up two websites i.e “mathguru.com” and “ learninghour.com”, which caters the students need after school.
2. Everonn Systems
Everonn is a fully integrated Knowledge Management, Education and Training Company which offers several services like:
- Create educational and training content which is relevant globally.
- Design and execute learning initiatives
- To set the required infrastructure for learning and training
Everonn Systems is a pioneer in the Government Schools business and IT Infrastructure Services (IEIS) business. It provides solutions in the field of training and short courses with the intent of enhancing the skills of both students and employees. It provided management programs for leading institutions like IIMs, XLRI and LIBA etc through its V-SAT technology.
Products
- IEIS (Institutional Education and IT Infrastructure Services) is Everonn’s business to provide computer education to students at government schools.
- Everonn has a very innovative product line known as ViTELS (Virtual & Technology Enables Learning Solutions),
o 50 professionals working on content development and improvement.
o Provides the best contents which are dispersed to students by creating virtual classrooms at remote locations using VSAT technology.
o There are three initiatives under this business:
1. Corporate initiative provides its ViTELS platform to corporate to train their employees, which includes services like training to fresh recruits, soft skills and refresher training to existing employees.
2. Institutional initiative provides curriculum as well as non-curriculum courses like mathematics, sciences, vocational training, English speaking etc to students at schools and colleges.
3. Retail initiative provides coaching to students at remote locations for entrance and competitive exams like JEE, CET, PMT.
- “I School” is a recently launched product similar to the Smartclass by Educomp. It will provide multimedia education content access to the students in their classrooms, assisted by their teacher. For any specialized lecture it could be linked up through VSAT technology.
3. NIIT Limited
NIIT is India’s largest IT training company. It is the market leader in the Indian retail IT training market.
It has a diversified its business model, with an expansion into newer businesses like training courses in Banking, financial services and Insurances (BFSI). The Company is shifting itself from pure-play training to becoming a “Global Talent Development Corporation”.
Products
- Individual Learning Solutions (ILS)-It constitutes of two segments-“Careers” and “Non-Careers”. In the “Careers” segment, NIIT gives IT training programs like GNIIT, to graduates and undergraduates, which enables them to make a career in IT, whereas in the “Non-Careers” segment, NIIT re-skills the professionals currently working in the industry so as to upgrade them with the market requirements. The Company trains over 500,000 learners each year, with an alumni base exceeding 3 million.
- School Learning Solutions (SLS)-This business caters to the computer education needs of government and private schools of India. It provides support in setting up the infrastructure for government schools and it also designs and develops the courseware and textbooks in various Indian regional languages. At the end of Dec 2007, NIIT was working with 3,828 government schools and 940 private schools.
- Corporate Learning Solutions (CLS)-This business provides content development, learning management solutions and training delivery services. NIIT acquired Element-K, a leading provider of learning solutions in North America, which offers over 3,500 courses in the US and Canada and hosts a learning platform. NIIT not only increased its size by the acquisition but also made its presence amongst the world’s leading global providers of comprehensive learning solutions, through its combined entity.
4. Classteacher learning systems
Classteacher Learning Systems helps schools leverage the power of technology for better management (of the school), productivity (of teachers and administrative staff), communication (with external entities) and learning outcomes (of students). The current installed base of classteacher is 44 schools. The company has an online learning facility and testing service with around 20,000 students already installed.
Products
- e-Pathshala, a technology aided learning solution, competes with Smart-class, on a smaller scale.
- i-perform, an online retail product aimed at k-12 education.
No of Govt schools implemented
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Addressable markets |
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| Source: CREDIT SUISSE REPORT |
Source: CREDIT SUISSE REPORT |
No of private schools where learning solutions are implemented (SEP 2007)
Source: CREDIT SUISSE REPORT
Ace Recommendations
Acknowledgements:
CREDIT SUISSE,
Angel Broking
Disclaimer: The information contained in this report has been obtained from public domain considered reliable. However, Ace Global has not independently verified the accuracy or completeness of the same. Neither Ace Global nor any of its affiliates, its directors or its employee accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein
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