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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

http://www.assocham.org/prels/printnews.php?id=1815http://www.assocham.org/prels/printnews.php?id=1815

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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_Act

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Thank You