Market Research Report : E-learning Market in India 2012

15
Insert Cover Image using Slide Master View Do not distort E Learning Market India ELearning Market India February 2012

description

For the complete report, get in touch with us at : [email protected] E-learning market in India was valued at INR 18.41 tr in 2010-11 and is expected to grow at a CAGR of 20%. Increasing internet penetration, low existing coverage and rising demand are expected to develop this market strongly in the near future. This sector has attracted large investments and is slated to lead to strong growth opportunities for the education sector. The report begins with an introduction to the education market in India and its various sub-segments. Indian education system largely consists of formal and informal sectors, with the formal sector accounting for the major share. A macro overview of the Indian education system is also included, which throws light on some of the key indicators such as literacy rate in India, demographic split in education, budget allocation for education and five year plan outlay for education. The market overview section gives an insight into the overall education market in India along with the e-learning market, their market size and growth. It is followed by the segmentation in the e-learning market, comprising multimedia in private schools, ICT in public schools and online education, along with their respective shares. The value chain, primarily consisting of content suppliers, technology providers and end consumers, is also included. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market. An analysis of the drivers and challenges explains the factors leading to the growth of the market including low education coverage, rising demand from various segments, growing personal computers and internet penetration, increasing government participation and convenience factors. Strong opportunity exists in the market due to low coverage of education in India. This coupled with the fact that demand from other education segments are rising, will drive the e-learning market. The key challenges identified are accreditation and recognition issues, expensive mode of education and lack of awareness and acceptance. Key trends in the market have also been analysed which includes PE/VC investments in e-learning segment, proliferation of e-learning devices, foreign universities offering online courses and focus on digital content for schools. Recently, the education sector has seen many PE/VC deals in e-learning segment on the back of growing demand for digital content in schools and online courses. Moreover, online courses are now being offered by foreign universities and even e-learning devices have increasingly become popular. The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. A bubble chart for the public companies, depicting their relative positions in the market with respect to total income, net profit/loss and market capitalization is included. Similarly, a

Transcript of Market Research Report : E-learning Market in India 2012

Page 1: Market Research Report :  E-learning Market in India 2012

Insert Cover Image using Slide Master ViewDo not distort

E Learning Market IndiaE‐Learning Market – India

February 2012

Page 2: Market Research Report :  E-learning Market in India 2012

Executive Summary

Market

E‐learning market in India is still at a nascent stage and is expected to witness dynamic growth

It was valued at INR x bn in 20‐‐ and is expected to reach INR y bn in 20‐‐

It is an emerging education segment and includes multimedia in private schools, ICT in public schools as well as online education

E‐learning value chain primarily consists of content suppliers, technology providers and end consumers

Emerging segments such as e‐learning will lead to strong growth opportunities in India’s education market 

Drivers– Low education coverage

Challenges– Accreditation and recognition issues

Drivers & Challenges

Low education coverage

– Rising demand from various segments

– Growing PC and internet penetration

– Increasing government participation

– Convenience factors

Accreditation and recognition issues

– Expensive mode of education

– Lack of awareness and acceptance

Trends

PE/VC investments in e‐learning segment

Proliferation of e‐learning devices

Foreign universities offering online courses

Competition

Major Players

Player 1 Player 2 Player 3

Focus on digital content for schools

2E‐LEARNING MARKET IN INDIA 2012.PPT

pPlayer 4 Player 5 Player 6

Page 3: Market Research Report :  E-learning Market in India 2012

•Introduction

•Market Overview

•Drivers & Challenges•Drivers & Challenges

•Trends

•Competition

•Strategic Recommendations•Strategic Recommendations

•Appendix

3E‐LEARNING MARKET IN INDIA 2012.PPT

Page 4: Market Research Report :  E-learning Market in India 2012

Indian education system consists of formal and informal sectors

Education Sector in India – Introduction

Indian Education Systemx% y%

Formal Education SystemInformal Education 

System

x% y%

y

Higher Education

Schools (K12)

Pre‐schoolsVocational Training

Coaching Classes

E‐Learning BooksPublic Private Public Private

Scope of the report

Indian education system is dominated by the core sectors of higher education and schools (K12), which account 

4E‐LEARNING MARKET IN INDIA 2012.PPT

Source:

y y f g ( ),for ~z% of the total consumer spends in the market

Page 5: Market Research Report :  E-learning Market in India 2012

E‐learning and other emerging segments will help the education market in India to grow strongly 

Education Market in India – Overview Market Size and Growth• Education is one of the largest service sectors in India and is poised to become one of the best globally INR tr

• The sector has attracted large investments with more than half of the market being funded privately

• Indian education market has witnessed lot of developments and changes over the last few years, mostly towards increasing coverage and quality

a%

E‐learning Market in India – Overview Market Size and Growth

mostly towards increasing coverage and quality

• Emerging segments such as e‐learning will lead to strong growth opportunities in the education market  2015e2014e

0.02013e2012e2010 2011e

E learning Market in India  Overview Market Size and Growth• E‐learning market in India is still at a nascent stage and is expected to witness dynamic growth over the next few years

• It is an emerging education segment and includes

INR bn

b%It is an emerging education segment and includes multimedia in private schools, ICT in public schools as well as online education

• Increasing internet penetration, low existing coverage and rising demand are expected to develop 

5E‐LEARNING MARKET IN INDIA 2012.PPT

Source:

this market strongly in the near future 02014‐15e2013‐14e2012‐13e2011‐12e2010‐11

Page 6: Market Research Report :  E-learning Market in India 2012

Drivers & Challenges – Summary 

Drivers Challenges

Low education coverage

Rising demand from various segments

Accreditation and recognition issues

Expensive mode of education

Growing PC and internet penetration

Increasing government participation

Lack of awareness and acceptance

Convenience factors

6E‐LEARNING MARKET IN INDIA 2012.PPT

Page 7: Market Research Report :  E-learning Market in India 2012

Trends – Summary

PE/VC investments in e‐learning segment Proliferation of e‐learning devicesg

Focus on digital content for schools

Foreign universities offering online courses

7E‐LEARNING MARKET IN INDIA 2012.PPT

Page 8: Market Research Report :  E-learning Market in India 2012

Players in the e‐learning space are increasingly focusing on providing digital content to schools

Focus on Digital Content for Schools

E‐learning players are focusing on schools which are moving from traditional black board to digital content to enhance effectiveness of teaching

• It has launched M, a digital learning solution for teachers d d f d h l h h ll b l bl

Company 1

• K in association with L has launched P to help schools in

Company 2

and students of Indian Schools, which will be available for students of standard 3rd to 8th and for science and English only

Company 3

K in association with L has launched P to help schools in Madurai adopt digital learning with 3D technology and make teaching‐learning sessions more interactive

Company 4

• It has entered into a partnership with Z to provide high quality basic skills online courses for children aged 5‐12

• It is planning to tie up with schools in Tier II and Tier III cities to provide internet education to schools with basic computer laboratories and classes till standard VIII

• It has launched D, an integrated learning solution for Indian schools, which includes an effective blend of classroom activities and interactive multimedia 

Company 5

• A and B have launched an e‐learning pilot programme, C in five government higher primary schools, which will  include digital instruction materials from ‘D'

Company 6

8E‐LEARNING MARKET IN INDIA 2012.PPT

Source:

demonstrations include digital instruction materials from  D

Page 9: Market Research Report :  E-learning Market in India 2012

Public: Domestic Company – Player (1/3)

Company Information Offices and Centres – India 

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Products and Services

Ticker Symbol

Stock Exchange

Head Office

Key People

Products and Services

Category Products/Services

Category 1 Product 1 Product 2 N D i tiCategory 1 Product 1, Product 2

Category 2 Product 1, Product 2

Name Designation

A

B

C

9

Source:

D

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 10: Market Research Report :  E-learning Market in India 2012

i i l S h K i

Public: Domestic Company – Player (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability RatiosOperating Margin

Total Income Net Profit/LossINR mnINR mn

3000Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets

1000

02010200920082007

-1000

Financial Summary 

• The company incurred a net loss of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐

• The company reported total income of INR c mn in FY 20‐‐, registering a decrease of d% over FY 20

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)

Interest costs (% of Sales)registering a decrease of d% over FY 20‐‐

• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐

• The company reported debt to equity ratio of g in FY 20‐‐, an increase of h% over FY 20‐‐

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity RatioD b C i l R iKey Financial Performance Indicators

Indicators Value (Date/Month/Year)Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

Debt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover

10

EPS (INR)

PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover

Source: Improved Decline

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 11: Market Research Report :  E-learning Market in India 2012

Public: Domestic Company – Player (3/3)

Key Business Segments Key Geographic Segments

Segment 4

Segment 3

Segment 2

Segment 1

Country 2

Country 3

Country 4

Country 5Country 1

0% 0%

Key Recent Developments

0%2010200920082007 2009

0%201020082007

Description  News

Overview

• Player, which was formerly known as D, provides online education services from high school through to professional education

• It provides A, a teaching and learning aid, skill development courses, preparatory courses for professional exams, such as CA, CEMA, CWA, and CS, coaching for competitive exams, and also  operates a distance education portal

New product launch• It has recently launched B, an education solution to offer online education for students of Ninth to 12th standards

11

Source:

Geographical coverage • C primarily serves the United States, Singapore, the United Arab Emirates, and India

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 12: Market Research Report :  E-learning Market in India 2012

Private: Domestic Company – Player (1/3)

Company Information Offices and Centres – India 

Corporate Address

Tel No.

Fax No.

Website

Products and Services

Website

Year of Incorporation

Other Offices

Head Office

Key People

Products and Services

Category Products/Services

Category 1 Product 1, Product 2Name Designation

Category 2 Product 1, Product 2Name Designation

A

B

C

12

Source:

D

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 13: Market Research Report :  E-learning Market in India 2012

i i l S h K i

Private: Domestic Company – Player (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2010‐09)

2010 2009 2008 2007

Profitability RatiosOperating Margin

Net Profit/LossTotal Income

INR mnINR mn

Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)

Interest costs (% of Sales)Financial Summary 

002010200920082007

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity Ratio

b i l i

• The company earned a net profit of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐

• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20‐‐

Debt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover

• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐

• In 20‐‐, the company’s debt to equity ratio showed a decrease of g% as compared to FY 20‐‐

13

Working Capital TurnoverCapital Employed Turnover

Source: Improved Decline

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 14: Market Research Report :  E-learning Market in India 2012

Private: Domestic Company – Player (3/3)

Key Recent Developments

Description  News

• Player architects designs develops and markets technology‐based solutions and digital content for e‐

Overview

• Player architects, designs, develops, and markets technology‐based solutions and digital content for e‐

learning businesses

• X sold ~y% stake of its z in b for INR c mn

• It provides e‐Learning in K‐12, Higher Education, Publishers,  for corporates and also extends Tests and A t d it L i i d b th 100 i ti d 20 dAssessment and its e‐Learning services are used by more than 100 organizations and 20 mn end users 

globally

Collaborations•M. signed an agreement with Excelsoft to impart on‐line classes on solar PV, solar thermal, energy 

efficiency and biofuel/biomass forms alternative energy

Network • N has entered into a Joint Venture with Infinitas Learning to expand its network

Awards and Recognitions• P won the Best Performer ‐Mysore Region' award by the Government of Karnataka and Software 

Technology Parks of India in 2010

14

Source:

E‐LEARNING MARKET IN INDIA 2012.PPT

Page 15: Market Research Report :  E-learning Market in India 2012

Thank you for the attentionThe E‐Learning Market ‐ India report is part of Research on India’s Education Industry Series. For more detailed information or customized research requirements please contact:

Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick

Gaurav KumarPhone: +91 33 4064 6214E‐Mail: [email protected]

Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India

15E‐LEARNING MARKET IN INDIA 2012.PPT

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.