1. Vol. 45, 8th Jan’12 – 5th Feb’12
Four-S EDUTRACK
Monthly Update on Indian Education Sector
In the Spotlight Content
India’s First Cloud-based Tablet for Students In the Spotlight 1
After partnering with Datawind to launch the world’s cheapest Tablet
Aakash, the government has gone ahead and unveiled India’s first Investment Activity 2
Cloud-based Tablet called the ‘e-tutor Tablet’. Like Aakash, this Tablet
is also for students albeit this time it is for school students from class
News and Policy Development 3
1st to 12th.
The Tablet has been developed in a joint venture (JV) by two Kerala
Corporate Developments 4
based IT firms. The JV is between e-tutor and Oztern Technology. The
learning content has been developed by e-tutor while the technology
has been provided by Oztern Technology. The Tablets will be sourced Stock Market Performance 5
by the companies and they are still in the process of finalizing vendors
for the same. The Tablet will be priced at Rs 7,500 (inclusive of
content) and it will be made available in the Indian market from April.
Peer Benchmarking 6
The included content will be of only one standard and additional
content will have to be bought for other standards. About Four-S Services 8
About Four-S Services
Four-S Services is India's leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and
Bangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of
decision making and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of
industries including Education, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etc
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For further information, please contact Seema Shukla at seema@four-s.comPage | 1 us as http://www.four-s.com
or reach

2. FOUR-S EDUTRACK
Investment activity
Private Equity
Date Investor(s) Target Stake (%) Amount ($Mn) Business Stage
18-Nov-11 Ashmore Alchemy SEED Infotech Ltd. NA 6.3 Vocational Training Growth
23-Nov-11 Omnia VC Sunstone Business School NA NA Higher Education Early
20-Dec-12 Omidyar Network Teach for India NA 2.5 K-12 Education Early
17-Jan-12 New Silk Route Varsity Education NA NA Education Services Growth
eDreams Software Education
31-Jan-12 Mumbai Angels NA 1.0 Early
Innovation Software Products
Mergers & Acquisitions
Date Acquirer Target Stake (%) Amount ($Mn) Target's Business
30-Sep-11 Edserve Softsystems Prosel Ventures NA 8.0 Education
10-Nov-11 TIME Veta 51% 12.1 Supplemental Education
9-Nov-11 Reliance Industries Extramarks Education Ltd 39% NA Supplemental Education
14-Dec-11 Career Launcher GK Publications NA NA Publications
Divya Knowledge Process
1-Feb-12 Comp U Learn Tech India 100% NA Education Services
Management
*Only last few deals listed above
PE Investments M&A Deals
Investment Amount (in $mn) No. of Deals
Total Transaction Value (in $mn) No. of Deals
200.0 26
180.0 25 300 13.2
13
160.0 13
24 250
140.0 12.8
120.0 200 12.6
In $mn
In $ mn
100.0 22 12.4
21 150
80.0 258.0 12.2
60.0 135.1 100 12 12
20
40.0 185.2 11.8
50 82.9
20.0 11.6
0.0 18 0 11.4
2010 2011 2010 2011
Four-S Indian PE Directory 2011 – “A Guide to choosing private equity partners“
Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years.
A first-of-its-kind, the directory offers “Deal History” in India for individual investor.
Management, investment profile and Contact details.
User-friendly Spreadsheet Format.
It comes from Four-S Services, the most trusted deal information bank in India.
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
Page | 2

3. FOUR-S EDUTRACK
News and Policy Development
Ombudsman in higher education institutions MHRD to discuss merging of IITJEE and AIEEE
Finding its Unfair Practices Bill stuck in Rajya Sabha for almost The Union MHRD will soon call a meeting of Indian Institutes
a year, the HRD has found a way-out to deal with educational of Technology (IIT) Council to stamp a decision to merge the
malpractices in majority of higher education institutes. The IIT-Joint Entrance Exam (JEE) and All India Engineering
ministry on Monday decided that every educational Entrance Exam (AIEEE) conducted by the CBSE. After much
institution affiliated to a Central University and under control resistance, the IITs have agreed to join the ministry’s bid to
of a Central regulator such as University Grants Commission have a common entrance examination for all engineering
(UGC) and All India Council for Technical Education (AICTE) to colleges in the country. This only happened after there was
have an ombudsman to deal with grievances. The new system an agreement that several elements of IIT-JEE will be part of
would be in place before the next academic year. The new the new national common examination.
direction would cover over all educational institutions, except
state universities and colleges affiliated to these universities. On features of the new entrance examination aimed to
evaluate skills of a student objectively - A student’s Class 12
Educational institutions to publish balance sheets marks and entrance exam score will have equal weightage.
Weightage would be given to the marks obtained in class XII
All educational institutes under the central government and
boards after the results are equalized for which Indian
those that get grants or approvals from central education
Statistical Institute will put in place a mathematical formula
regulators will be directed by the government to publish a
for equalization.
balance sheet every year, starting 2013, to bring in more
transparency to the sector. The educational institutes will
Meta-university may start from next academic session
follow a uniform accounting norm and disclose income and
expenditure in a standard format similar to that of companies. HRD minister Kapil Sibal announced that a network of
universities, forming a meta-university, will allow students to
All Union government institutes, including central universities, pick courses from across disciplines from different
IITs, IIMs, NITs will have to adhere to the accounting institutions from the coming academic session (2012-13). He
standards. Besides, all universities and colleges under the explained that this would reinterpret the concept of a
UGC, the AICTE and the National Council of Teachers university as not just a traditional, physical space of learning,
Education will have to follow the norms. Even schools but as a repository of knowledge and information that can be
affiliated to the Union government-controlled CBSE will have delivered in multiple ways and can be accessed from
to incorporate the accounting norms. anywhere and anytime.
Only ~70,000 sign up for CMAT New accreditation system will ensure quality education
Merely 70,000 aspirants across the country have registered Engineering colleges and technical institutions in the country
for the first edition of the national level Common would be forced to maintain quality with the National Board
Management Admission Test (CMAT). The entrance test, for of Accreditation (NBA) spearheading a new accreditation
admission to 3,500-odd MBA colleges in the country, will be system. Various crucial aspects of technical education would
conducted online by the All India Council of Technical be scrutinized and colleges that fulfill the set criteria would
Education (AICTE) over a period of eight days starting get accreditation. NBA is a provisional Member of
February 20. The idea of a common admission test for Washington Accord, an international agreement aimed at
admissions to B-schools, barring Indian Institutes of bringing about global quality standards in technical education
Management, was mooted last year. The announcement was among member countries.
made in December. The idea is to have fewer entrance tests
for students to reduce stress. All AICTE-approved institutions
will have to accept CMAT scores.
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
Page | 3

4. FOUR-S EDUTRACK
Corporate Development
Core Leads Talks to Buy Jhunjhunwala's Stake In Aptech Datawind to push for 'Made in India' Aakash tablet in next
tender
Core Education & Technologies, India’s largest educational
services firm by market cap, has emerged as the front-runner Datawind, the maker of the lowest priced tablet 'Aakash',
to acquire billionaire investor Rakesh Jhunjhunwala's stake in today will request the Human Resource Development
Aptech. Jhunjhunwala is seeking a valuation of about `7bn for Ministry to include 'Made in India' clause in the proposed
his stake Jhunjhunwala purchased 36% stake in the company tender for the low-priced device. Datawind successfully made
rd
six years ago at 1/3 the current price. the $49.48 tablet Aakash in India despite various pressures.
The government plans to procure large number of low-cost
Dewan Housing Finance Eyes Education Loan Business computing device to leverage benefit of broadband
connectivity in universities and colleges in a phased manner.
Dewan Housing Finance Corporation Ltd, a private sector
The ministry, in the first phase, had issued tender to procure
housing finance player backed by Caledonia Investment and
1 lakh devices
Sequoia Capital India, is expanding beyond real estate
financing and making foray into education lending business.
Comp-U-Learn acquires Divya Knowledge Process Mgt Ltd
Dewan Housing Finance is looking to buy equity stake of an Comp U Learn Tech India has acquired Divya Knowledge
unlisted non-banking financial company (NBFC) registered Process Management Ltd, an educational services company
with the Reserve Bank of India. The company proposes to having tie-up with Bharathidasan University, Tiruchirapalli,
foray into the education sector in order to provide a portfolio Tamil Nadu, for approved IT & BPO courses. Founded in 1997,
of education loan and allied services. Interestingly, Housing Comp-U-Learn provides internet based solutions, education
Development Finance Corporation Ltd (HDFC) also entered & training, e-commerce solutions, Software Design and
this segment by acquiring Credila Financial Services from DSP Development, end to end IT and business solutions. This is
Merrill Lynch Capital Ltd. Comp-U-Learn's fifth acquisition in last 3 years
US hotel chain to enter education IIM-Indore seeks external help for job placements
US-based Best Western International, one of the largest hotel IIM-Indore plans to partner with some placement firms to
chains in the world, is set to foray into the education sector in make sure that all 450 students in the current batch receive
India. The company’s India arm has identified four locations to offers. The institute is in talks with around five agencies. IIM-
set up hospitality management schools in the country. The Indore had not used external agencies in 2009, the toughest
first one will come up in Bangalore in the next six months. year in recent memory as it followed the financial crisis of
2008. The batch size that year was 180 and the institute was
Best Western, which runs hotels worldwide under the able to place all. This year the external agencies will carry on
franchisee model, will start educational institutions in the a parallel placement process, once the institute receives a
same model, tying up with local players. The hotel chain has definite number of offers by itself.
an e-learning platform as well. The Bangalore training centre
will host short-term courses for at least 200 students. The
company is planning to open the other three centres in Noida,
Dehradun and Bhubaneswar.
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
Page | 4

5. FOUR-S EDUTRACK
Stock Market Performance
Market Cap Price Percentage Price Change
(` mn) (In ` ) 1 Week 1M 3M 6M 12M
Core Education 28,977 258 0.1% -0.7% -7.0% -12.9% -1.3%
Educomp 23,364 243 12.4% 21.3% -9.8% -29.6% -46.3%
Navneet 13,519 57 3.1% 6.9% -15.0% -15.6% -1.8%
Tree House 7,279 216 2.1% 23.1% 5.6% - -
NIIT Ltd 6,975 42 0.4% 10.2% -13.0% -23.5% -17.0%
Everonn 6,371 292 3.8% -12.6% -22.9% -40.0% -42.1%
Career Point 4,726 261 -3.5% 23.1% -8.3% -18.2% -22.2%
Aptech 4,436 91 1.9% 30.3% -24.2% -34.6% -16.6%
Zee Learn 3,988 15 2.6% 20.5% -19.5% -28.9% 48.7%
Edserv 1,156 44 6.7% 9.0% -54.8% -42.9% -43.6%
Compucom 1,016 13 2.5% 0.3% -19.5% -21.0% -25.1%
Jetking 385 65 9.8% 30.7% 8.3% -21.3% -43.9%
Peer Benchmarking
Interim Results
Revenues EBITDA PAT
Figures in Rs mn Year Ending Fiscal year Quarter
Current Last Year % growth Current Last Year % growth Current Last Year % growth
Educomp March 2011-12 Q2 3,275 2,873 14% 686 1,038 -34% 128 578 -78%
NIIT Ltd March 2011-12 Q3 2,501 3,007 -17% 251 370 -32% 407 129 216%
Core Education March 2011-12 Q2 3,532 2,791 27% 1,394 996 40% 750 535 40%
Navneet March 2011-12 Q2 1,112 992 12% 187 169 11% 115 98 18%
Everonn March 2011-12 Q2 796 1,081 -26% 241 380 -37% -38 156 -124%
Aptech March 2011-12 Q2 474 540 -12% 71 87 -19% 66 55 21%
Edserv March 2011-12 Q2 362 274 32% 45 108 -58% 12 91 -87%
Career Point March 2011-12 Q2 208 256 -19% 74 142 -48% 60 112 -46%
Compucom March 2011-12 Q2 176 201 -13% 110 98 12% 30 33 -9%
Zee Learn March 2011-12 Q2 125 - -56 - -64 -
Tree House March 2011-12 Q2 175 - 107 - 53 -
Jetking March 2011-12 Q2 101 118 -15% 14 33 -56% 6 24 -76%
Annual Results
Revenues EBITDA PAT % EBITDA % PAT
Figures in Rs mn TTM Quarter
TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth margin margin
Educomp Q2 FY12 14,584 10,968 33% 5,423 4,618 17% 2,989 2,232 34% 37% 20%
NIIT Ltd Q3 FY12 14,359 11,882 21% 1,522 1,664 -9% 765 468 63% 11% 5%
Core Education Q2 FY12 12,708 9,582 33% 4,885 3,387 44% 2,693 1,926 40% 38% 21%
Navneet Q2 FY12 5,836 5,471 7% 1,392 1,246 12% 867 764 13% 24% 15%
Everonn Q2 FY12 4,269 3,600 19% 1,565 1,196 31% 511 511 0% 37% 12%
Aptech Q2 FY12 1,855 1,574 18% 186 158 17% 949 66 1332% 10% 51%
Edserv Q2 FY12 1,362 852 60% 485 382 27% 316 278 13% 36% 23%
Career Point Q2 FY12 748 705 6% 228 283 -20% 238 235 1% 30% 32%
Compucom Q2 FY12 741 612 21% 441 319 38% 130 101 29% 60% 18%
Zee Learn Q2 FY12 519 - -55 - -70 - -11% -13%
Tree House Q4 FY11 392 214 84% 176 69 153% 92 26 254% 45% 23%
Jetking Q2 FY12 354 416 -15% 73 122 -40% 40 91 -56% 21% 11%
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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6. FOUR-S EDUTRACK
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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7. FOUR-S EDUTRACK
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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for
prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE
Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com
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