Market Research Report : Vocational Training Market in India 2012

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Vocational Training Market IndiaVocational Training Market – India

April 2012

Executive Summary

Market

Vocational training market was valued at INR a bn in 20‐‐ and is slated to reach INR b bn in 20‐‐

It is likely to take off in a major way over the next few years, owing to strong government participation

Government has set a target of preparing c mn skilled workers by 20‐‐, as around d mn jobs will be created over the next e years and f% of them will require vocational training

Drivers & Challenges

Drivers– Huge demand for skilled workers– Low vocational training penetration– Increasing government expenditure

Challenges– Low quality of inputs– Lack of finance

Challenges g g p– Growth in service sector– Inefficiency in formal education system

Government Government Bodies Government Initiatives

Trends

Investments and M&A activity in vocational training Corporates imparting vocational training Government encouraging public private partnerships

ParticipationGovernment Initiatives Associated Bodies

Competition

Government encouraging public private partnerships Online and distance vocational courses

Major Players

Player 1 Player 2 Player 3

2VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT

Co pet t oPlayer 4 Player 5 Player 6

•Introduction

•Market Overview

•Drivers and Challenges

•Government Participation

•TrendsTrends

•Competition

St t i R d ti•Strategic Recommendations

•Appendix


Indian education system consists of formal and informal sectors

Education Sector in India – Introduction

Indian Education Systema% b%

Formal Education SystemInformal Education

System

a% b%

y

Higher Education

Schools (K12)

Pre‐schools E‐LearningCoaching Classes

Vocational Training

BooksPublic Private Public Private

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

Scope of the report


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

Source:

Vocational training market in India is poised for strong growth owing to favourable government support

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

x%

mostly towards increasing coverage and quality

• Stronger government support will lead to better growth opportunities in the education market

0.02015e2014e2013e2012e2011e2010

Market Size and GrowthVocational Training Market – Overview• Vocational training market in India is likely to take off in a major way over the next few years, owing to strong government participation

•Government has set a target of preparing a mn kill d k b 20

INR bn

y%skilled workers by 20‐‐•Out of around c mn jobs that will be created over the next d years, e% will require vocational training to enhance the employability prospects

• Huge demand‐supply gap also encourages the entry 0

y%


Source:

Huge demand supply gap also encourages the entry of new players in this segment

02015e2014e2013e2012e2011

Drivers & Challenges – Summary

Drivers

Huge demand for skilled workers

Low vocational training penetration

Challenges

Low quality of inputs

Increasing government expenditure

Growth in service sector

Lack of finance

Inefficiency in formal education system


Vocational training market in India will largely be facilitated by the huge demand for skilled workers

Huge demand for skilled workers

• India faces a huge shortage of skilled workers at present with a large number of people lacking adequate professional skills

Impact

• Burgeoning demand‐supply gap in workforce has increased a growing need for vocational training among Indians

• By 20‐‐, around a mn jobs will be created, of which b% will require vocational training

•Government has initiated lot of policies to bridge this gap, creating ample space for new players to enter the market and help it grow

• Entry of new players will be encouraged by the huge demand for skilled workers, which will strongly drive the vocational training market in India

Skill d W k B i I di A l T i i C itSkilled Worker Base in India Annual Training CapacityIncreasing skilled worker base will act as a boon for the vocational training market

mn mn

training market

Increasing training capacity will help

develop the 0


Source:

market in India02022e2011

Existing training capacity

New Entrants

Trends – Summary

Investments and M&A activity in vocational training

Corporates imparting vocational trainingg training

Online and distance vocational courses

Government encouraging public private partnerships


Public: Domestic Company – Player (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products and Services

Ticker Symbol

Stock ExchangeHead Office

Key People


Category Courses

Category 1 Product 1, Product 2N D i ti

Category 2 Product 1, Product 2

Name Designation


Source:

i i l S h K i

Public: Domestic Company – Player (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2011‐10)

2011 2010

Profitability RatiosOperating Margin

Net Profit/LossTotal IncomeINR mn INR mn

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

020112010

Financial Summary

• 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

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)registering an increase 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‐‐

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

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity Ratio

b i l iKey Financial Performance Indicators

Indicators Value (03/04/2012)Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

( )

Debt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover


EPS (INR)

PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover

Source: Improved Decline

Public: Domestic Company –Player (3/3)

Key Business Segments Key Geographic Segments

Segment 1

0%

Segment 3

Segment 2

Segment 1

0%

Segment 2

Segment 1

Business Highlights

0%2011

0%2011

Description News

Overview

• Player is a global retail and corporate training solutions provider, with presence across a continents, and has trained over b mn students

• It currently has more than c centres in India and d centres overseas across e countries and plans to add more f centres by FY 20‐‐

Collaborations • Player had joined hands with TRRAIN foundation to train retail staff from Shoppers Stop, HyperCity Lifestyle Capital Foods and Duster Total Solutions

• It is the first IT education & training company in Asia to receive the ISO 9001: 2000 quality certification


Source:

Awards and CertificationsIt is the first IT education & training company in Asia to receive the ISO 9001: 2000 quality certification

• Player was ranked among Global Top 20 IT Training Companies by TrainingIndustry.com

Private: Domestic Company –Player (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.


Website

Year of IncorporationHead Office

Key People


Category Courses

Category 1 Product 1, Product 2N D i ti

Category 2 Product 1, Product 2Name Designation


Source:

i i l S h K i

Private: Domestic Company – Player (2/3)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin

Net Profit/LossTotal Income

0INR mn

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

0

Return on Fixed Assets

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

Interest costs (% of Sales)Financial Summary

02011201020092008

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‐‐


Working Capital TurnoverCapital Employed Turnover

Source: Improved Decline

Private: Domestic Company – Player (3/3)

Business Highlights

Description News

Overview

• Player runs a chain of English language training institutes across India under the name ‘V’

• Presently, it operates as a subsidiary of player

• It has ventured into providing corporate training solutions through its division player

Network• It operates over a centres across b cities in India and has empowered over c mn people to speak English

• It also has presence in the international space in Singapore and Sri Lanka

M&A Activity• Player is an established test‐prep institutes, had acquired a majority stake in V for around INR d mn in

Nov 20‐‐

• Player’s clientele includes Asia Motor Works, Toyota Kirloskar, HDFC, ICICI, L&T Finance, National

Insurance Co Pizza Hut Nirula's Corner House Speciality Restaurants Wrigley India Border Security

ClienteleInsurance Co., Pizza Hut, Nirula s Corner House, Speciality Restaurants, Wrigley India, Border Security

Force, Apollo Hospitals, Lodha Group, Ramky Wavoo Developers, NIIT, Arena Multimedia, AMET

University, Kendriya Vidyalaya Schools, Tech Mahindra, HCL Technologies, FUJITSU Consulting India,

Hapag Lloyd Global Services, GATI, Voltas, ACC, Spencers Daily, Hindustan Uni Lever


Source:

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Market Research Report : Vocational Training Market in India 2012

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