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Introduction
Third la rgest higher sec ondary educa tionsystem in the world
480 universities and 22,000 c olleges CAGR of 5.8% is higher than tha t o f the
Persona l Financ e Consumption Ind ex
Estima ted ind ustry size is $80 b illion
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Compara tive Stud y on Qua lity of Primaryand Sec ondary Educ a tion in Ind ia
Countries
GrossEnrolment
Ratio inPrimary
education
Tea c her pe rstudents(Primary
Education)
Tea c her perstudents
(Sec ond aryEducation)
Brazil 148.5 NA 19China 116.2 20 19
Russia 113.8 17 NA
Indonesia 110.9 NA NA
South Afric a 105.1 NA 30
Ind ia 98.1 40 32
Sourc e: Selec ted Educ a tiona l Sta tistics, Ministry of Huma n Resource Deve lopment, Governmentof India, http :// ww w.assoc ham .org/ p rels/ p rintnews.php?id=1815
CountriesGross
Sc ores Ranks
Russia 7.28 1
China 6.77 2
Brazil 5.57 3Mexic o 5.42 4
South Afric a 3.89 5
Ind ia 3.29 6
Indonesia 2.68 7
Overa ll Sc ores
Some Fac ts
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Eng ineering Educ a tion Ind ustry
History
The first eng ineering colleg e, the Civil Enginee ring Co lleg e w asset up in Madras in the 1800s
From a mere 50 eng ineering colleg es in Ind ia in 1950, thenumber ha s c rossed 2,200 in 2009
Ma in rea son for this inc rea se in dem and is IT industry
Current Sc ena rio, Growth a nd Opportunities
The ma jor p layers a re IITs, IISC, NITs The governing bod y is All Ind ia Counc il for Tec hnic a l
Education AICTE ensures c oord inated and integra ted develop ment and
ma nag ement of tec hnic a l ed uca tion in the c ountry.
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Med ic a l Educa tion Expec ted CAGR 18%,Rs 35 billion market by 2012-13 Over 3000 med ic al institutions for a llop athic , homeop athic , una ni,
ayurveda , sidd ha, nursing & pha rma c y c ourses.
Out of these only 1100+ offer c ourses in medic ine and only 314 inallopa thic medicine c ommonly known as MBBS.
India need 6 lac doctors,2 lac denta l surgeon,1 million nurses.
Currently Ind ia produces 35000 doc to rs (a llopa thic ) & 21000 dentist pe rannum.
Med ica l enro lment has 3 %share in higher educa tion enro lment.
Six regulatory bodies for variousc ourses.
Centra l & sta te governments are only organized p layer.
Ma jor c olleges are loc a ted in southern sta te inc lud ing Gujra t &Maharashtra.
Large d iffe rences be tween demand & supp ly, a grea t opportunity lie liesto c ap italize.
With g rowing economy studentshave means to pay fo r fee.
Challenge is lac k of quality manpower for fac ulty posit ion.
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Coac hing Classes
Unorga nized sec tor, run by private ownedinstitutions
Many reg iona l p layers with less nation widepresence
Market Need
Wide range ofc oa c hing needs - IIT-JEE, AIEEE, AIIMS,BITSAT, CAT, GRE,
GMAT, IELTS, TOFEL,GATE
Heavy Competit ionfor seats & Jobs
Inc reased spend ingon education
Key Players
10th & 12th - ChateClasses, SriChaitanya, Brilliant,FITJEE
Professiona l DegreeEntranc es TIME, IMS,CL
Computer Educ ation NIIT, Ap tec h
Business Trends
Coa c hing institutesd iversific a tion - Pre-sc hools, k12 Sc hools,B Sc hools
Going online -TestFund a, Ca tion,TCYOnline.c om,askIITians
Study material forcorrespondencec ourses - FIITJEE,Brilliant, Rao IAS
2008 2012 (E)
USD6.8mn
USD13mn
Ma rket Value
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Coac hing Classes Market Trend
Company Name March 2010 Yea r (Rs Cr.)Equity Sa les NP Mkt. Cap . P/ E
Comp uters - Educ ation 282.82 2155.08 314.1 9207.47 26.5
Aptech 48.27 123.79 21.52 749.63 45.7
Birla Shloka 19.95 179.8 5.01 58.75 11.8
Comp ucom Soft. 10.05 59.43 9.29 190.2 21
Comp-U-Learn 19.16 18.39 4.63 33.34 7.3
Educ om p Sol. 19.09 832.22 221.87 5,734.16 25.9
Everonn Educ at. 15.12 210.65 43.4 1,086.98 25.3
NIIT 33.02 625.17 31.66 1,201.10 40.4
SQL Sta r Intl. 21.8 25.45 -18.13 29.69 0
Year 2010 2009 2008 2007 2006 2005 2004
No.Of Comp anies 20 11 14 15 14 14 15Key Ratios
Debt-Equity Ratio 0.27 0.6 0.47 0.38 0.27 0.17 0.13
Current Ratio 1.91 2 2.21 2.14 2.16 1.81 1.72
Interest Cove r Ratio 5.04 8.04 8.14 7.19 5.93 4.22 3.91
PBIDTM (%) 22.47 34.22 27.27 25.95 20.61 21.28 20.79
APATM (%) 7.67 13.39 12.81 11.9 7.14 6.34 7.77
ROCE (%) 11.21 19 14.97 13.46 10.42 8.75 10.3
Fo r C o m p u t e r Ed u c a t i o n
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Business Sc hool Educ a tion
History The first manage ment sc hoo l IISWBM (a t incep tion the institute was c a lled 'AllInd ia Institute of Soc ia l Welfare and Business Ma nagement') wa s estab lished in1953 a t Kolkata .
In 1961, Ind ia beg an to e stab lish its netw ork of p restig ious sta te-run businesssc hoo ls the respec ted Ind ian Institutes of Ma nagem ent (IIM) in Kolka ta
Till now the numb er of B- sc hoo ls grows 147% from 1990 to 2009
Current Sc ena rio, Growth a nd Opportunities
It has Sc a le of 1600+ B-sc hoo ls and has excellenc e (think of IIM A or ISB) Numb ers ma de available by the AICTE shows that business ed uca tion ma rket
in Ind ia is about Rs.30 billion in 2008 (c ampus and d istanc e educ ationtogether) and grow ing a t a ra te of 12% CAGR in last 3 yea rs.
Boom ing local ec onomy (grow ing @ 8%) and a lot o f prob lems! Yes, these'prob lem s' in a rea s like Hea lthc are, Educ ation, Infrastruc turedeve lop ment...a re a ll op portunities for ma nag ement c ommunity to resea rc h -- for the world .
Ma ny foreign universities a re a lso interested in entering Ind ia s businessed uca tion market
Indeed , c ome 2020, and India will be one of the Top 3 MBA d estinations in the
world with 10+ glob a l MBA institute b rands. It is possib le & will happen. Ind iahas the potential to b e a globa l powerhouse o f MBA education
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Stud ying Abroad : Popula r CoursesData from last years UK Education Exhibition shows the following trends:
50 per cent a re interested in Business and Ma nagem entCourses
47 per c ent o f enq uirers a re self-funded stud ents
38 per cent a re interested in Med ica l and Hea lth rela ted
courses 31 per c ent a re interested in postg radua te deg rees (ma sters or
doc tora te deg rees)
20 per c ent a re interested in undergraduate deg rees orcertific a tes and d ip lomas
13 per c ent a re interested in certific a te c ourses / non deg reecourses
The above mentioned trend is almost similar in all the major countries
attracting foreign students.
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Market In Ind ia for foreign Universities
Ind ia needs 1,500 universities, compared with a bout 350now, to ra ise the enrolment numbers from 7 per c ent ofthe pop ula tion ag ed 18- 25 to develop ed c ountryaverage.
More tha n 100,000 stud ents leave Ind ia annua lly to stud yabroad . It made foreign universities rea lize tha t there's
another 'c rea my layer' be low these students abroad whoare a re p repared to pay upwards of Rs 2.5 lakhs a yea rfor qua lity educa tion.
List of foreign universities in India: Virg inia Polytec hnic Institute and Sta te University (Virg inia Tech)
Georg ia Institute o f Tec hnolog y (Georgia Tec h) Sc hulic h Sc hool of Business
Boston University
Midd lesex University
Duke University
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Regulations in Ind ia for foreign Universities
The FEPs would be trea ted as Ind ian p riva te universities and
a llow ed to set their ow n fee and would be exempt fromreservations .
No repa tria tion o f profits w ill be a llowed . A foreign universityasp iring to set up a c ampus will a lso have to deposit Rs 50c rores as c orpus fund and c annot take b ac k the surp lus
genera ted from ed uca tion ac tivities here. Moreover, a foreigned uca tion p rovider sha ll, out o f the incom e rec eived from thec orpus fund, utilise not more than 75 per cent of it for thedevelopment of its institutions in Ind ia .
All c olleg es offering higher ed uca tion need to b e a ffilia ted to auniversity (in turn under the purview of the c entral regula tory
body ca lled UGC University Grants Commission). A foreign university seeking to estab lish an educ a tiona l
institut ion in Ind ia has to do so by way of a reg istered trust or asoc iety and franc hises from foreign universities a re notpermitted.
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References http :/ / ww w.merinews.c om/ artic le/ ed uca tion-industry-is-booming-
too/129454.shtmlhttp :/ / timesofind ia .ind ia times.com/ business/ ind ia -business/ PE-cos-look-to-tap-education-market/articleshow/5521771.cmsThe Ec onomic Times Business of Educ a tion 2005ICRIER rep ort on higher ed uca tion - http :/ / www.ic rier.org/ pd f/ WP_179.pd fhttp://www.c2clive.com/latestnewsdetail.php?id=281University_Grants_Commission_(India)All_Ind ia_Counc il_for_Tec hnica l_Educ ationBar_Counc il_of_Ind iaMedical_Council_of_IndiaThe_Right_of_Child ren_to_Free_and _Compulsory_Educ a tion_Ac thttp://www.mciindia.orghttp://www.dciindia.org/http://www.cchindia.comhttp://www.ccimindia.orghttp://www.pci.nic.in/http://www.education.nic.inhttp://www.capitaline.comCoa c hing Classes Ind ia Rep ort b y Bhara t Book Bureau
http://en.wikipedia.org/wiki/The_Right_of_Children_to_Free_and_Compulsory_Education_Acthttp://www.dciindia.org/http://www.cchindia.com/http://www.ccimindia.org/http://www.pci.nic.in/http://www.education.nic.in/http://www.capitaline.com/http://www.capitaline.com/http://www.education.nic.in/http://www.pci.nic.in/http://www.ccimindia.org/http://www.cchindia.com/http://www.dciindia.org/http://en.wikipedia.org/wiki/The_Right_of_Children_to_Free_and_Compulsory_Education_Act8/8/2019 Section B Group 5 Education Sector
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Thank You
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