1. 1. Mahindra Warroom Mahindra Partners | Namaste Team Name : NM Trailblazers SBM Narsee Monjee Institute of Management Studies, Mumbai 1
2. 2. Agenda Overview Strategy Vocational Training Global Employment Program Training of Trainers Mobilization & Assistance Financial Analysis
3. 3. Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis Annual Vocational Skill Demand Supply Gap in India Vocational Training Demand (A) Total Students 40 million 1/3 Demand Vocational Training 13.3 million Vocational Training Supply (B) ITI/ITC 1 Million BE & Polytechnics 2.4 million Total 3.4 Million GAP (A-B) 9.9 Million KeyGovernmentSchemes Industry Overview Indian Demographic Dividend - Statistics Key Policy Initiatives of the Government Prime Ministers National Council of Skill Development - Set up as an apex institute for policy direction & review National Skill Development Corporation: A not for profit company formed as PPP to facilitate skill development National Skill Development Co- ordinationBoard : Formulating strategies to implement the decisions of the PMs National Council of Skill Development 68.6 66 62.58 62.69 61.92 61.62 59.88 56.71 55.88 52.76 49.3 0 10 20 30 40 50 60 70 80 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 %Dropout Secondary SchoolDropoutRate 50% of population below 25 years 5% of workforce employable as compared to 50% in developed nations India will be worlds most populous country by 2030 Will have largest number of people in working age population (15- 59) Expected to have a large English- speaking population by 2050 1
4. 4. Competition Landscape Providerelevantskill-set to the less fortunateyouth Education / Skill Development Services, Hospitality, Construction, Organised Retail, Electronics / Hardware, Automotivework, Agriculture School dropouts Basic skills at Trainability Centres and Vocational skills at District Institutes Wider reach, trust & affordable education NGOs Unassured placements & only for socially deprived To engage with Indians by through education &employment. To deliver high quality skill development IT-BPO, Microfinance, Banking & Insurance, Organised Retail, Sales and Marketing in Rural Areas Schooldrop outs, 10th&12th pass Tie up with content provider, local training providers and companies for placement Cater tosame TG as Mahindra Namaste ForProfit Institutes People are unwilling topay Starting with 8th Pass Govt. institutes To provideworkers to industry by systematic training to schoolleavers and enhance employment Electronics, Welding, Vocational Training, Beauty Courses, Computers etc Governmentand Industrialsupport Nominal fees Quality gap To become an effectivebridge between the employer and the employee Providing jobs for various sectorsfor which there is an industrial demand Case Based Chargethe employer for providing a competent employee Provides jobs without charging fees Consultancy Notraining opportunity To enhance skill training relevant to their sector or area of operation Hospitality, Construction, Organised Retail, Electronics / Hardware, Automotive work, Agriculture School dropouts Parentcompany support Domain expertise CSR Initiatives Limitedtothe companys domain Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis EligibilityCourses OfferedValue Proposition Operating Model Threat Gap 2
5. 5. Gaps in Skill Training Dimension Key Issue & Challenges Infrastructure constraints The available data on seating capacity clearly underscores the capacity of ITIs/ITCs Course Relevance Lack of focus on development pertaining to the specific requirement of employers Soft-Skills Lack of adequate focus on soft skills by existing institutes Inconsistent Quality Heterogeneous nature of training institutions with varying capabilities and facilities Faculty Development No mandatory training & development programs or industrial orientation is being offered. Industry Participation No adequate industry participation in the field of curriculum development, training of instructors & other aspects of vocational training Need for Reforms to address the gaps Quality in terms of process & manpower Standards need to be well defined & monitored Making it more relevant to satisfy industry demands and students needs Forging Partnerships with quality & willing players, outcome drivenmonitoring Pre-conditiontheauthentic & relevantneeds Focusedinitiatives in key areas to initiate, implement and operate vocational educationand training centres Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 3
6. 6. Overview About Namaste& ResearchMethodology Research Methodology Goals PrimaryResearch SecondaryResearch About Namaste Currently, IT/ITES, Retail , Hospitality and Automotive courses being run Mahindra Namaste Private Limited was set up in 2012 as a professional skill training venture as a social for profitenterprise Targeted at youth of 18-26 groups with minimum educational qualification as 10th Standard Currently, operating 2 centers; 1 each in Hyderabad and Chennai Starting with 1000 students Mahindra Namaste aims to train 1 million youth over 10 years into well established, high earning professionals through employment ready training and placement services Establish industry partnerships for relevant and responsive course content development and placements. NSDC State-wise skill-gap analysis reports NSDC Industry-wise skill-gap analysis reports Research papers from EBSCO EY: Strategic and Implementation framework for skill development in India McKinsey, Deloitte and KPMG reports Have more than 100 centres Interviews with NGOs and For-profit Skill-development centres in Mumbai area: Pratham, Khedwadi Yuva Parivartan, Kotak Foundation, and Tech Mahindra Foundation Interaction with Corporate recruiters in Retail and hospitalitysectors Interviews with 76 students and parents from the community in Andheri and Powai areas Interviews with prospective students and those enrolled at Mahindra Namaste(information from the Facebook page) Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 4
7. 7. Target Group Segmentation | PrimaryResearch McKinseysBottom of the Pyramid TypicalProfile of the Target Segment Has passed 10th Working for unorganised sector, Earns 4000- 6000 per month Peer group engaged in similar jobs or self employed or in anti social activities Lives with a family of 5. Parents wanthim to work for a regular flow of income Minimal English speaking skills and low on vocational skills Aspires for abetter quality of life PrimaryResearch|AndheriPowaiSlums Qualification Current Income Peer Group Family Per CapitaIncome Vocational Skills Aspiration 50%28% 14% 8% Less than 12th 12th Pass Pursuing Graduation Graduates 20% 32% 38% 10% No Income Less than Rs 5000 Rs 5000-7000 More than Rs 7000 30% 35% 20% 15% Unemployed Similar Jobs Studying Better Jobs 35% 30% 23% 12% Less than Rs 1000 Between Rs 1000-2000 Between Rs 2000-3000 More than Rs 3000 23% 40% 17% 20% Not aware Doesn't feel the need Received/ing Training Industry Ready 10% 35% 30% 25% Satisfied Wants a two wheeler Wants a car Wants to own a house Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 5
8. 8. PrimaryResearchInsights Interviews of Students, Parents/Guardians, Trainersand Corporate Recruiters OJT emerged as a popular teaching method amongst the studentsfor skill training 50%28% 14% OJT Classroom Correspondance TeachingMethods Gender Break-up 68% 32% Male Female 27% 25%18% 16% 14% Parents Friends Teachers A respected Idol Celebrity Key Influencers 31% 21% 40% 8% Blue collar service Manufacturing White collar service Self-Employed Parents and Friends are one of the biggest influencers on students while deciding on skill training Parents Student Village Elders Company Pilot Project 0% 10% 20% 30% 40% Parents Student Testimonials Village Elders Company Testimonials Blue and white collar services emerged as the favorites amongst the youth WaystoCounselPreferenceofJob Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis Source: Primary Research 8 6
9. 9. Business Model Canvas for Mahindra Namaste Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 7 Vocational Training Mahindra Namaste Global Employability Program Training of Trainers For training youth in vocational skillsfor domestic demand Skill developmentof the aspiring emigrants To train existing & aspiring trainers Value Proposition Program Methodology SelectionProcess Batches of 30 students 3 month course Focus on Soft Skills& Practicals On the Job Training Fee Assistance Assured Placement CompetitivePricing Trusted Brand Quality Counselling Screening with Test Interview
10. 10. Existing Roadblocks|PrimaryResearch Location: As the income earned is less, people arent willing to travelfar distances Parentsdont believe that spending money on training& losing opportunitycost is a wise choice Peer Pressure:Friends encourage to be a part of antisocialactivities Mismatch of Expectations of the aspirants.They dont think training can lead to betterment Dropouts & Lesser Admissions Training Dropouts On the Job Training Dropouts Placement Dropouts Less Admissions Handholding& Counseling Mentoring Parent/Guardians Involvement Alumni Interaction Industry Exposure Mobilization/Social Marketing Change in Market Forces: Skillsnot relevant,No takers for the skills provided Upgradationof Skills Casteism & other Social Stigmas DontTrain Because of 20% DontTrain Because of 12% DontTrain Because of 15% DontTrain Because of 8% DontTrain Because of 18% DontTrain Because of 27% Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 10 9
11. 11. AddressingRoadblocks Handholding& Mentoring & Counseling Parent/Guardians Involvement Alumni Interaction Industry Exposure Aim : To give the trainee constant guidance & support to make them feel comfortable Methodology: 1 Assign a mentor to each trainee. The mentor does weekly checkups on the trainee and monitors their progress. 2 Each center will have a qualified counselor who will be responsible for helping the trainees with their personal issues 3 Various handholding exercises will be conducted to help the trainees like extra guidance on weak subjects, visits to the students homes if absent for more than 3 days, birthday & festival celebrations Aim : To enhance the involvement of the Parents or Guardians as they are important influencers in the trainees life Methodology: 1 Share regular progress reports with parents/guardians 2 Hold parent/guardians meetings with the trainers twice during the duration of the course 3 Conduct celebrations for the students like annual day for each batch & graduation ceremonies. Aim : To create a sense of belonging for the pass outs, leverage on the alumni base & also provide a source of inspiration for the budding employees Methodology: 1 Conduct annual alumni gatherings and have a rewards & recognition ceremony for felicitation 2 After each bath passes out conduct rallies and get-togethers where aspirants will be encouraged to come and interact with the alums Aim : To help students gain exposure into life after training & assist industries to look into the batch profile. Also align the course based on industrys current demands Methodology: 1 Conduct at least 2 industry visits and help the trainees understand the workings of various departments 2 Update the courseware like syllabus and equipment every year based on the changing demands of the market. 3 Conduct regular seminars and guest sessions by industry experts and alumni for students to gain further confidence into the course structure & the training Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 11 10
12. 12. Backward & ForwardLinkage Backward Linkages Forward Linkages Partnership with the NGOs Partnerships with the industry Form partnerships and associations with NGO working at the local level Helps to understand to the local needs and aspirations Also helps in mobilizing and promoting Mahindra Namaste among the potential students Can also use their infrastructure for training in case of Satellite Centre NGO would benefit from the association with brand Mahindra Reduces time to start for Mahindra Namaste center in a city Also reduces cost Acceptability would increase by partnering with a local body due to trust Mahindra Namaste would need to leverage the huge diversity of the Mahindra Group with strong presence in every sector It can also leverage its strong partnerships with suppliers and vendors for the program. Forming Partnerships with NGOs Forming Partnerships with Industries Design curriculum in partnership with market leaders of selected sectors. Leverage expertise of sector skill councils Extensive OTJ training to be carried out at the partner premises. Helps students to experience real life scenarios Job opportunities with the partners on successful completion of the course. Continuous feedback to improve course Curriculum Design On the Job Training(OJT) PLACEMENTS Mahindras Suppliers Mahindras Customers Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 12 11
13. 13. Course *Demand in 2009 *Demand in 2022 Incremental Demand CAGR Attractiveness to Youth Attractiveness Score Composite Score Rank 1 Building & Construction 25 58 33 7.26 MEDIUM 2 12.35 3 2 Auto& Auto Components 13 48 35 11.50 HIGH 3 14.30 1 3 Real Estate Services 11 22 11 5.95 LOW 1 4.99 7 4 OrganizedRetail 0.3 17.6 17.3 40.40 MEDIUM 2 14.27 2 5 BFSI 3.3 10.5 7.2 10.13 HIGH 3 5.69 5 6 Gems & Jewellery 3.3 8 4.7 7.66 MEDIUM 2 3.94 9 7 IT & ITES 2.2 7.5 5.3 10.76 HIGH 3 5.24 6 8 Electronics &IT Hardware 0.9 4.2 3.3 13.70 MEDIUM 2 4.73 8 9 Leather &leather goods 2.5 7 4.5 8.96 LOW 1 3.64 11 10 Furniture &Furnishings 1.4 4.8 3.4 10.81 LOW 1 3.68 10 11 Hospitality 1.289 6.177 4.888 13.95 HIGH 3 5.76 4 Parameter **WeightAssigned A Incremental Demand .2 B CAGR .3 C Attractivenesstoyouth .5 Composite score .2A + .3B+.5C Course Selection Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 12 *Units are in millions **Weightage is assigned based on JudgementAnalysis Source: NSDC Sector wise reports In ordered to havea focused approach and buildsector specific industry linkages we choose to focus only on the top 6 courses as identified Parameters Top 6 Courses
14. 14. 2012-17 2018-22 City State Retail IT Hospitality Construction Automotive BFSI Retail IT Hospitality Construction Automotive BFSI Mumbai Maha 341373 182795 78347 202288 4835 - 849446 279891 114080 280740 7752 - Kolkatta WB 47650 72000 10371 94467 6393 - 34308 60000 10066 79705 5234 - Ahmedabad (Guj) Guj 19367 42000 32290 31974 14280 28227 34000 25832 28598 - 9996 Surat Guj 21778 31500 24790 26966 9066 23806 19832 24119 - 6346 Pune Maha 229130 174487 23394 147083 64191 58303 570150 267169 34064 204721 99004 93721 Nagpur Maha 22102 4871 10380 81590 4819 27601 54996 7458 15114 113232 7610 44367 Thane Maha 22576 129826 4153 121016 5150 48042 56177 198786 6046 167949 8228 77227 Aurangabad Maha 16508 19925 40572 21220 14476 41077 29012 56307 32671 23270 Vadodra Gujrat 14894 42000 16080 18442 - 13710 16281 34000 12864 16495 - 9597 Ludhiana Punjab 18655 - 753 117853 - 7651 20215 - 952 134562 - 5631 Nasik Maha 23875 - 8698 54345 14727 21635 59409 12665 75421 22770 34778 Faridabad Haryana 26330 30457 634 49530 - 10985 23586 47454 572 44947 - 12584 Lucknow, Kanpur, Ghaziabad, Agra, Varanasi, Meerut UP - Cumulative 104904 257448 278698 1441424 - 295054 334451 490498 421816 1679592 - 476431 Incremental Demand of manpower in various cities for different courses Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 13 Pune Maha 229130 174487 23394 147083 64191 58303 570150 267169 34064 204721 99004 93721 2012-17 2018-22 City State Retail IT Hospitality Construction Automotive BFSI Retail IT Hospitality Construction Automotive BFSI
15. 15. Course Name Employment Opportunity Competition Course Content Pre-Hospital & Hospital Care Training High High requirement for medical help with a technical training to be of assistanceto the doctors AveragePay-Scale:30000-40000per month Medium toLow Not offered by NGOs and other skill development organization Courses offered by LIHS,Mumbai Protocolbased training in Emergency medical Services and trauma care to healthcare providers Empower health careproviders & community to save lives Networking for disaster awareness &preparedness Domestic- Help/ Care- giving to Senior citizens Medium Residents of High-end condominiums are willing to pay a premium for reliable services and ensure retention AveragePay-Scale:8,000-12,000per month Low; Not offered by NGOs and skill development organizations Offered by an NGO in Pune Course offered by DOMESTEQ, Delhi Expertise in Cooking, article cleaning and washing Expertise in grocery purchase Manual handling of electrical Kitchen equipment Behavioralskills as required Gym-Trainers High Fitness is becoming a trend in the Urban areas Growing number of Health centres in Metros and Urban areas AveragePay-scale :10000-15000 per month. Low; Offered by Fitness centers Not offered by many NGOs/ Skill development organizations Course offered by YMCA, Mumbai Anatomy and Exercise Physiology Weight-Training Techniques Kinesiology and supplementation Professional Dancing Medium Ensures employment with professional dance troops and high opportunity for Self-Employment AveragePay-Scale:8,000-10,000per month Medium; Not offered by NGOs and other skill development organization Course offered by YMCA, Mumbai Focusing on specialization in various danceforms Hip-hop, Bollywood and Salsa Niche Courses Insight There is a rise in demand for non traditional courses in metro & tier I cities Strategy To start non-traditional coursesin the 4-5 years in the old established centres based on the demand Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 15 14
16. 16. 10 Year Plan | Implementation Timeline Year I Year II Year III Year IV Year V Year VI Year VII Year VIII Year IX Year X Insights In 2012, 54 Indian cities with a population of 1 million or more alone accounted for 40% of Indias GDP. By 2025, 69 Indian cities with a population of 1 million or more are expected to account for 77% of Indias GDP. Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 15 Foundation (0-3 yrs) One centre in each state. Establish contacts with NGOs and Corporates. Understanding the market & adopting Growth (4-7 yrs) Aggressive expansion 2nd centres where required. Increased Penetration through Hub & Spoke Momentum (8th year onwards) Already Established Maximizing Operational Efficiency Innovating Simulation , Virtual classrooms
17. 17. 10 Year Plan | Implementation Timeline Present Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 3 10 18 30 45 61 78 93 105 114 122 7 8 12 15 16 17 15 12 9 8 Chennai Mumbai Srinagar Chennai Mumbai Lucknow Bhopal Srinagar Vasai Dhanbad Allahabad Hyderabad Delhi Pune Hydeabad Delhi Indore Vishakhapat nam Faridabad Varanasi Amritsar Pimpri & Chinciwad Banglore Kolkatta Kanpur Bangalore Kolkatta Surat Ranchi Meerut Nasik Navi Mumbai Bhubanesh war Ahmedabad Raipur Patna Ahmedabad Pune Patna Rajkot Aurangabad Jalandhar Salem Jaipur Srinagar Vadodra Jaipur Kanpur Vadodra Kalyan Moradabad Tiruchirappa lli ChittoorLucknow Bhopal Ghaziabad Raipur Ghaziabad Jodhpur Mysore BelgaumIndore Vishakapatnam Ludhiana Thane Ludhiana Madurai Gurgaon Muzaffarna garRanchi Agra Vasai Navi Mumbai Agra Nagpur Aligarh AzamgarhSurat Varanasi Allahabad Jabalpur Kota MuzaffarpurFaridabad Nasik Pimpri & Chinchwad Chandigarh Guwahati Meerut Aurangabad Howrah Jalandar Bareilly GuntarRajkot Dhanbad Coimbatore Gwalior Purba MedinipurREPEAT CENTRES Kalyan Amritsar Barddhaman Vijayawada HUB & SPOKE North Twenty Four Parganas Rangareddy Purba Champaran Murshidabad South Twenty Four Parganas East Godavari Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 16 TotalCentres New Centres
18. 18. Year Present Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Number of centre 3 10 18 30 45 61 78 93 105 115 123 Newcentres opened 7 8 12 15 16 17 15 12 10 8 Utilizationof the capacity 60% 70% 80% 90% 90% 90% 90% 95% 95% 95% Averagenumber of courses / centre 4 4 4 5 5 5 5 6 6 6 Students Trained 5,760 12,096 23,040 48,600 65,880 84,240 100,440 143,640 157,320 168,264 Total Number of centre - 3 6 10 15 20 25 30 35 41 47 Newcentres opened 3 3 4 5 5 5 5 5 6 6 Utilizationof the capacity 60% 70% 80% 90% 90% 90% 90% 95% 95% 95% Averagenumber of courses / centre 2 2 3 3 3 4 4 4 4 4 Students Trained 864 2,016 5,760 9,720 12,960 21,600 25,920 31,920 37,392 42,864 TOTAL 6,624 14,112 28,800 58,320 78,840 1,05,840 1,26,360 1,75,560 1,94,712 2,11,128 10 Year Plan | Implementation Timeline Objective To set up more than 100 centers across the country to train 1 million youth and place them in regular jobs with reputed companies Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 17 49,536 4,18,896 10,00,296TotalNumber of StudentsTrained
19. 19. Objective To increase the reach of the courses beyond Tier 2 cities Consists of a City Centre and a few Satellite Centres Methodology Theory classes to be conducted at Satellite Centre Practical sessions to be conducted at the City Centre Paid/Unpaid OTJ Training for 15 days Centralised placement Advantages Reduces cost of operation Increase the penetration to include villages and smaller towns Competitive advantage as no organized player has targeted this segment Can leverage strong Mahindra Brand name to mobilize Ideally to have 6 Satellite Centres with 10 students each for differentcourses. NGO in these towns and villages to mobilise. Also infrastructureof the NGO to be used for the theory classes. Practical's followed by OJT to be held at the City Centre. Lower costof Operation Lower Fees for students Courses to be decided on the basis of the industry scenario and the demand in the nearby area District: High Unskilled labour, No Mahindra Namastecentre in vicinity and high potential demand. City Centre: Good transportation system, centreof all the small towns and villages SatelliteCentre: Should haveunskilled labour, motivated & aspiration of youth to work. City Centre Model Structure Satellite Centre Selection & Implementation Integrationof VariousChannels Example of the Hub & Spoke Structure Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis Hub & Spoke 19
20. 20. Of the current trainees Upgradation of Skills | CareerGrowth Reason for Upgradation Changing dynamicsof the industry Need for growth for the trainees Make the offering of the institute more wholesome Who feels it is needed? 40% Of the employers55%Of the trainers48% Upgraded courses Advance Retail Positions Available-Customer Interaction Manager, Purchase & Merchandising Manager, Department Manager Skills to be developed- Understanding of cross functional activities, Ability to adapt to market changes, Knowledge of SKUs, Advance soft skills & leadership skills Eligibility Anyonewith a basic certificationfor the above streams & a relevantwork experience of at least 2 years Advance Construction Positions Available-Senior Supervisors, Engineers, Project Managers Skills to be developed- Planning & scheduling, project management, Resource estimation, Communication & team building skills, Conflict management, Safety skills, Writing skills in English, Risk management Advance IT Positions Available-Module Leads, Analysts Skills to be developed- Developing specializations, Domain exposure, Project estimation abilities, Communication & soft skills, Customer relationship management, Process knowledge Advance Hospitality Positions Available-Senior Customer Relationship Manager, Department Head Skills to be developed- Communication & soft skills, Customer relationship management, Negotiation Skills, Leadership & team building skills, Estimation & organization skills Relevantexperience of at lease 2.5 years or more (depending upon the course) OR Who needs it? Someone who wantspromotions and a constant career growth Way Forward Tie up with industry players who want their employees to grow Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 20
21. 21. US UK Brazil Germany India France China Japan Australia Population (mn) 310 62 195 82 1225 63 1341 127 22 Young population(15-25) as a % of total population 14 13.1 17.2 11.2 19.2 12.4 16.8 10 14.1 Literacy Rate (%) 99 99 89 99 74 99 92 99 99 Unemployment Rate (%) 9.6 7.8 6.7 7.1 10.8 9.3 4.3 5 5.2 Fulfilling Global Shortfall - India Global Supply of Skilled Manpower A comparison Low Median Age: India has the youngest population inthe world with a median age of 25 Largest Population of workingage group: India is expected to have largest working population ( age 15-64 years), with a billion people in working age group by 2050 Large English-speaking population: Can be leveraged to become major exporter of human resources, a large English speaking people by 2020 High demand for mobile Indian labour force: Multiplenationssigning agreements for facilitated migrationof Indianworkers , eg Germany, Australia etc India is strategicallysuited to fulfil the globalshortfall because Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 21
22. 22. Country No Of Indian Workers Global Migration Barometer Need for Migrants Composite Score Top 3 skills in Demand Italy 70,652 68.6 67.6 68 English teachers Tourism Automotive UK 15,00,000 78.2 60.5 67.58 Hospitality Retail Mining & Quarrying USA 9,27,283 80.3 54.8 65 Retail Nurse Computer Analysts Australia 2,13,710 67.1 62.2 64.16 Nurse Chef IT Professionals Canada 2,00,000 82.7 51.4 63.92 Technicians & Mechanics Engineers Medical Technicians Singapore 2,70,000 77.8 47.4 59.56 Automative Industry Health care Retail Qatar 5,00,000 59.3 54.9 56.66 IT Programmer Hospitality Sales Worker UAE 17,00,000 54.7 56.6 55.84 Housekeeping Hospitality Sales Worker Thailand 90,000 57.1 50.4 53.08 Retail Hospitality Healthcare Kuwait 5,79,058 54.4 48.4 50.8 Restaurant Manger Sales Assistant Hospitality Measured by Economist intelligence Group , measures a nations attractiveness to migrants + Accessibility formigrants & its need for migrant workers A composite score with weightage of .6 to need for migrants & .4 to migration barometer Targeted Nations & Skills Statewise Migrant Data - 2009 UP 125783 Kerala 119384 Tamil Nadu 78841 AP 69233 Bihar 50227 Rajashtan 44744 Punjab 27291 West Bengal 21187 Maharashtra 19128 Karnataka 18565 Selecting Centre Locations Steps of Global Employability Program Skills to be targeted in Phase 1( Existing Programs as per Domestic Requirements) Skills to be targeted in Phase 2( New Courses which can be started ) Selecting Courses& Centres For Global Employability Program Nations with > 50,000 Indian migrants selected Ranked on basis of Global Migration Barometer & Need for migrants (factors by Economist Intelligence Group) Nations with a composite scores of > 50 to be targeted as they providean attractive destination Testing & Selection Identificat ion of Country & Skill Job Specific & Orientatio n Training Placement Assistance through recognized Recruiting Agents Visa Assistance Through Tie-up with travel agents Location to be selected depending upon number of emigrants at state-level. Top 10 states according to number of emigrants to be targeted phase wise Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 22
23. 23. Train the Trainers CurrentScenario While majority of trainers possess technical skills, many lack teaching skills, soft skills and entrepreneurship development skills. Some NGOs alsowant trainers to mobilize Lack of standardizationof eligibility criteria&evaluation for trainers bothfor entry and advanced levels resulting in varying criterionadoptedby training institutes toselect trainers The more organizedthe sector, the greater the preference for certification. However some areas training institutes place greater importanceonthe practical aspects of training Severe Shortage: The 5 Advancedtraining institutes that exist cantrainonly2000 trainers ayear under their flagshipcourses TeachingMode 54% 63% 26% 0% 20% 40% 60% 80% Advanced Training Skills Computers Enhancement of Soft Skills Need Assessment National Council for Vocational Training approved a proposalto upgradeModel IndustrialTraining Institutes for conducting instructors training. Would increaseannual training capacity by a mere 1,200 trainers, considering thereare 4 MITIs & each MITI can train 300 instructors annually.37000 583000 0 100000 200000 300000 400000 500000 600000 700000 2008 2022 Demand For Vocational Trainers Average Annual Requirement Trainers for ITI/ITC 12000 Trainers in other vocational Streams 27000 Total Annual Requirement 39000 Current Annual Capacity for Trainers 16000 GAP/Year 23000 Issues ImportanceofCertification 49% 53% 51% 53% 46% 48% 50% 52% 54% Continuous Engagement Enhanced Motivation Higher Roles & Responsibility Recognition Trainers with NGOs TrainersKnowledge 50% 52% 26% 0% 20% 40% 60% Regular Training Exposure & Seminars Industry Interface Degree of Importance Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 23
24. 24. Induction Program/Train the Trainers To fulfil the gap of training the trainersfor the vocational courses& to provideeffective trainingto deliver efficient trainers Objective Way Forward To certify all new entrants as being competent to deliver classroom training sessions To build familiarity and conceptual understanding of the training products To provide a common basis and understanding of quality To empower trainers to carry out some of the training product development procedures. To provide a framework to keep track of all the trainers in order to provide the most appropriate expertise for different customer engagements / levels Indicative CourseContent PsychologicalTests Understandingthe trainers| Introductionto Management Understandingthe culture | Need for training Communicatingthe tools for training& Model classes Introductionto curriculum Introductionto batches and demo classes | Importance of coaching Industry visits, Talkingto industry experts, Seminars, UnderstandingTrends Feedback Broad Skill Requirements 'Hard' teaching skills (subject specific) Aptitude and attitudefor training Awareness of 'Principlesof Teaching' Industry Experience 'Soft' skills Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 24 24
25. 25. As per ourinteractions with the NGOs and respondents ofourprimarysurvey,students & parents are unwillingto part with a huge amount at one-go. They generallydo not trust the validityofthe promise of assured placement. Financing Options Research Insights Eligibility Check Background Verification of Applicant & ability to payback Disbursal of loan (50% of fees) at a minimal rate of interest of 4% Information Sharing with Corporate Share applicants assessment data and background data with corporate. Banking Partner Tie-up with banks to provide interest at a lower than market rate Banks also provide preference to Mahindra applicant Sensitization Sensitize the applicant on the responsibility of repayment Involve family members of the applicant as co-borrowers Corporate Sponsorship Corporate pays for the applicants fees as part of its CSR activity Repayment Repayment to be done after start of job Allow company where the applicant is placed to directly debit the amount & pay the institute Earn&Pay Corporate Sponsorship Collaborations withBanks Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 25 25
26. 26. Mobilization Key Findings Lack of awarenessis partly responsible for poor mobilization Public meetings, televisions,pamphlets& vernacular newspaper, mobile SMS-seen as effective tools Word of mouth, parental advice, respected idol testimonials from successful students biggest influencers Fees assistance programs such as subsidies, scholarships & placements act as catalysts Objective To bring about awarenessfor Mahindra Namastesskill development and to increase the enrolment rate Strategy Direct Approach:To capitalizeon internalstrengths to gain participation Indirect Approach:Toleverage on our partnershipsto spread awareness Direct Approach Door to Door Counselling ParentsCounselling 1 Have a designated counselling team of a trained counsellor & trainers for each centre 2 Prepare a customized script addressing the aspirations city wise/area wise 3 Conduct door-to-door counselling trying to tap in as many aspirants as possible for addressing problems as well as explaining our offerings 1 Organise a chai-samosa meet and invite parents & students at different city halls 2 The event would have different games & activities to engage the audience 3 Games would have names such as Namastes-Guess the song contest etc 4 The counselling team would interact with parents and explain the value proposition 1 Visit different localities and organise meetings at prominent locations 2 Get speakers who are a known local personality, successful Namaste students & trainers as speakers Have a designated MobilizationTeam : 1 Senior Trainer & 3-4 Trainers Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 26 26 CommunityMeetings Local Pilot Training Classes Conduct 1 day demo classes to generate cold leads & give the locals a flavour of classes
27. 27. Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis Direct Approach Street Plays 1 The trainers & the students should prepare exciting scripts to highlight the importance of skill development 2 The mobilizing team comprising of the efficient trainers should gain expertise through guidance by Namastes experienced workforce or external help 3 Conduct engaging street plays in popular & busy locations to grab the audiences attention with careful execution of the script and the intended message 4 Distribute flyers and brochures during the event Indirect Approach Mobilization Partneringwith the NGOs 1 Rope in the maximum number of NGOs Idea : To gain from the popularity and reach of the local NGOs. This helps even the NGOs to achieve their vision of the communitys betterment 2 Try to understand the communitys aspirations and requirements 3 Educate the NGOs about how Namaste would help the community achieve effective skill development 4 Enable them with flyers & brochures in vernacular language to enhance the communication Local Authority Support Idea : To seek help from the influential bodies as they have power & control. Also helps them achieve popularity & community goodwill. 1 The senior trainers or mobilization team prepares a pitch to rope in the local government bodies 2 Get their help to use facilities such as their community programs & events Local Brand Ambassador Idea : To rope in a local brand ambassador who can help glamorize the idea of vocational training. Also helps as they have high fan following They can include local actor, actresses, politicians, social figures, businessmen etc 27 27
28. 28. Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis Marketing & Branding Initiatives Television Ads Idea : To use television as a media and an influential personality to generate trust in the brand and its proposition Bharat aage badhega aur Hum bhi aage badhenge Roping in a trusted figure like Amitabh Bachchan would garner interest as well as credibility to the brand name. This would help in achieving awareness and widespread popularity Radio Campaigns Idea : Leveraging on radios reach to communicate the brand message Medium: Popular local FMs RJs and successful students talk of how Namaste can bring about a change in line with the television campaign Newspaper Idea: To use the power of print Have articles, ads and interviews on vernacular dailies so that the audience is comfortable in understanding the message Digital Platform Idea: To use the online platform for creating a two way communication Online Chat Rooms Have trainers or a designated person to answer questions regarding the program on the company website Telemarketing Idea: A direct marketing tool would help reach a large database of prospective students and would also have the advantages of personal selling Merchandise Have a designated team to gather leads and call up to understand student aspirations and also to interest them Callers should be familiar with vernacular languages Mahindra Namaste Idea: To build a stronger brand to gather support To have training books and cds under the Mahindra name Also students can wear t-shirts saying the same for active promotions & sense of belonging 28
29. 29. Financial Analysis Summary Op-Cost Summary Per student @ 100% utilization 29 MetroCity/Tier1 Tier2 4 courses 5 courses 6 courses 4 courses 5 courses 6 courses 10,625 9,312 8,940 7,600 6,826 6,769 MetroCity/Tier1 Tier2 4 courses 5 courses 6 courses 4 courses 5 courses 6 courses 10,200,000 11,174,000 12,874,000 7,296,000 8,191,100 9,747,600 Op-Cost Summary Per Centre Per Year Revenue Student Fees 15,000 for VT 25,000 for GEP Placement Fees 1,000 / student Expenses Metro City/Tier 1 20,300,000 Tier2 18,270,000 Fixed Setup Cost Profits 1 2 3 4 5 6 7 8 9 10 PAT (65,937,220) (94,023,020) (15,554,313) 109,594,789 179,607,825 351,469,530 498,028,298 994,920,475 1,270,916,239 1,583,997,266 NPV 499,699,578 IRR 20.21% Overview Strategy Vocational Training Global Program Training of Trainers Mobilization & Assistance Financial Analysis 1 2
30. 30. Thank You 30