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Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
Indalytics   Business In Education   April 2012
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Indalytics Business In Education April 2012

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Business in Education is a monthly report by Indalytics Advisors, which is focused on the supply side of education sector in India. The report is aimed at helping education services providers with the …

Business in Education is a monthly report by Indalytics Advisors, which is focused on the supply side of education sector in India. The report is aimed at helping education services providers with the latest activities in the sector.

The report covers the trends, as well as the opportunities in the Indian education sector, which were highlighted in media. It is designed for the individuals and organizations, which are in the education business, or are planning to enter it. It is also helpful for various products and services providers to the sector.

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  • 1. Business in Education April 2012INDALYTICSADVISORS BUSINESS IN EDUCATION April 2012 www.indalytics.com © 2012, Indalytics Advisors Private Limited | Indalytics.com | businessineducation@indalytics.com © Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 1
  • 2. Business in Education April 2012About Business in EducationBusiness in Education is a monthly report, which is focused on the supply side of education sector in India. Thereport is aimed at helping education services providers with the latest activities in the sector.The report covers the trends, as well as the opportunities in the Indian education sector, which were highlighted inmedia. It is designed for the individuals and organizations, which are in the education business, or are planning toenter it. It is also helpful for various products and services providers to the sector. Keep yourself updated with the latest activities in Indian Education Sector Visit Indalytics.com – to order annual subscription to Business in Education We cover latest trends, opportunities, regulations and best practices in Indian Education sector — to help you gain competitive edge© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 2
  • 3. Business in Education April 2012 Table of Contents Activities of Major Players ..................................................................................................................................... 4 Companies using different funding routes to expand ........................................................................................ 4 Increase in international collaborations ............................................................................................................ 5 New products introduced in the market ............................................................................................................ 6 Education companies joining hands with other organizations ........................................................................... 6 Opportunities in the sector .................................................................................................................................... 7 RTE expected to bring radical changes in education sector ................................................................................ 7 AICTE planning new colleges and courses .......................................................................................................... 7 IGNOU to receive grant from Japan ................................................................................................................... 8 Schools and research institutes to switch to virtual dissection .......................................................................... 8 Other Prominent Trends in the Sector ................................................................................................................... 8 Government to increase spending on education ............................................................................................... 8 World Bank to provide credit for RMSA program .............................................................................................. 9 Tripura introducing subject on human rights ..................................................................................................... 9 Companies’ Score Card ........................................................................................................................................ 10 List of Institutions and Organizations................................................................................................................... 12© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 3
  • 4. Business in Education April 2012Activities of Major PlayersIT companies expanding in education HCL Technologies will also be working with the statesector government of Uttar Pradesh to fund IT education in 120 primary schools on a public–private–partnershipAll India Council for Technical Education (AICTE) has (PPP) model. The project, which is a part ofpartnered with Microsoft Corporation to deploy government’s program of providing free laptops andMicrosoft Live@edu — a cloud-based solution —to tablets to the students, is expected to eradicatemore than 10,000 technical colleges and institutes illiteracy in Utter Pradesh within 10 years. HCL is alsothroughout India. The application will help students working with the government on proposed IT parksand faculty members under the AICTE approved in Agra and Lucknow.colleges to use Microsoft’s services such as email,Microsoft Office web applications, instant messagingand storage. Companies using different funding routes to expandThe cloud deployment will also help in providinghigh–quality technical education to students, Azim Premji Foundation, the endowment createdthrough Microsoft’s forthcoming offering — by Wipro Limited Chairman Azim Premji, is planningMicrosoft Office 365 for education. The offering will to sell 35 million shares of Wipro — worthhave solutions, such as Microsoft Office Professional, approximately INR1,530 crore — to fund itsMicrosoft Exchange Online email and calendar, expansion. The amount will be used to setup an 85-Microsoft SharePoint Online, and Microsoft Lync acre campus in Karnataka, to increase the teachingOnline — to help students in their studies. and research work of Azim Premji University — which is in its second year of operations.Microsoft India is also starting a project with thestate government of Bihar, to augment digital The foundation was gifted 213 million shares (8.66%literacy in the state. The pilot project — named of total outstanding shares) of Wipro Limited inWindow to the World — will start in April 2012, and 2010, of with it will be selling 16% share of 35 millionwill help in increasing computer–aided learning shares. The new campus will help the university toamong the teachers and students in state–run increase its batch size to 2,000 students by the fifthschools. The project will also help in setting up year of operation, from the current size of 100platform for connecting Bihar schools with students students.and teachers across the world. The pilot will startwith five government secondary schools.© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 4
  • 5. Business in Education April 2012 Coaching provider MT Educare — popularly known Increase in international collaborations as Mahesh Tutorials — has witnessed its initial public offering (IPO) oversubscribed 4.8 times and surging 12.94% on the day of listing. The company had come Chennai based Rajalakshmi Education Private up with INR99 crore IPO. The issue consisted of fresh Limited has signed a Memorandum of issue of INR35 crore and an offer for sale by Helix Understanding (MoU) with University of Worcester, Investments of up to 80 lakh equity shares. UK to provide Indian students international bachelors degree in Game Design and Development, as well as a masters degree in international business. MT Educare will be using the amount to establish new coaching centers at 20 locations, and finance the land acquisition and construction of a pre- Noida based Shiv Nadar University is collaborating university college campus in Mangalore, Karnataka. with Massachusetts, US based Babson College to Helix initially owned 28.6% stake in MT Educare, offer three programs on entrepreneurship. The which it had acquired for INR32.8 crore in 2007. It is programs include a four-year undergraduate estimated to have made 2.5x returns in the part-exit. program in business administration (BBA), a two– year MBA program and a one–year MS program. Hyderabad based education services company, Edutor Technologies (India) Private Limited has Babson College will help Shiv Nadar University with received a seed funding of INR2 crore from curriculum design, faculty training, and student Hyderabad Angels. Edutor develops interactive selection. It will also help the university with student learning platforms for K-12 students. The company exchange programs, where the BBA and MBA has a proprietary touchscreen device, which comes students will have an option to study one of the pre–loaded with educational content. The content semesters, and the MS students to spend one of the can be upgraded with the promotion of students to semesters at Babson College campus. higher classes. The course fee will be in the range of INR 11.5 lakh Edutor will use the funding for product development — INR15.75 lakh. The university will also provide and marketing. The company is currently selling the financial assistance to students to start their product in Hyderabad and adjoining areas through ventures. tie–up with schools. Its revenue model is subscription based, where the students have to buy annual subscription to the content. The Indian School of Business (ISB) has signed a memorandum of understanding (MoU) with Karachis Institute of Business Administration (IBA) to provide executive education in Pakistan. Under the MoU, ISB’s Centre for Executive Education (CEE) will design and deliver programs, focusing on emerging markets — which IBA will market to its senior management executives. ISB is planning to© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 5
  • 6. Business in Education April 2012 offer 10 programs this year, with the first program after completion of both the assessments. Pearson is scheduled to commence in June. planning to certify more than 5,000 teachers by the end of this financial year. New products introduced in the market UK based Warwick Business School is planning to open its campus in India, most probably in Delhi. The Bharti Airtel’s DTH service, Airtel Digital TV, has school has hired a consultancy firm to conduct a launched a competitive exam service —iExam. The feasibility study to ascertain location, costs and service helps students in preparing for their other factors. The school plans to run a full–fledged competitive exams, by accessing mock and practice campus in India, and will focus on research. tests on their TV. iExam will provide students with a real time experience in taking practice tests and competing with other students. It further provides Warwick is in league of many other business schools, them with personalized scores and profiles, along which are entering India. On a similar note, Canada’s with explanations to answers. Schulich School of Business of York University is building its campus in Hyderabad. iExam currently provides mock tests for AIEEE, IIT– JEE and other state level engineering entrance exams, with content being provided by Career Point, Education companies joining hands a Kota based IIT–JEE coaching provider. The service with other organizations will further be expanded to include examination content for PMT, CAT, and Bank PO in the portfolio. The application is developed by IIM Bangalore CL Educate Limited has signed a MoU with the incubated Brizz TV. North Eastern Council (NEC) to provide MBA entrance preparation in the North Eastern states of India. Under the MoU, CL Educate will provide coaching for MBA entrance exam to approximately Pearson Education Services will now be providing 200 students in Arunachal Pradesh, Nagaland, certification to teachers. The company has launched Mizoram, Sikkim and Agartala. The company is a dual–level teacher certification program — to already running its coaching centers in these areas. certify the proficiency of teachers in using technology in their classroom sessions. The coaching, which will start from April 2012, will be free of cost, and will provided for seven hours Under the program, the teachers will first have to daily for six days a week, for a period of six months. undergo training on basic usage of technology. Upon CL Educate will choose the candidates on merit completion of training, they can take the Level 1 basis. Assessment. After using technology in education for more than a year, teachers will be eligible to take the Level 2 Assessment, which will check their ability to explore new technology solutions in education. They will be awarded the Advanced Level Certificate© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 6
  • 7. Business in Education April 2012 Technology solutions provider Mexus Education, After the RTE, the National Council of Teacher will be collaborating with St. Xaviers group of Education (NCTE) is also taking adequate steps to Schools in Uttar Pradesh to implement digital reform and revamp teaching education system in the learning in the schools. As per the partnership, all country. NCTE is planning to revise almost all of the the 45 schools of St. Xaviers will use Mexus teacher training courses such as BEd, BPEd, MEd, Education’s complete school solutions package — and MPEd, and NTT, to make them in sync with the including the Iken Library; Iken Evaluate; Iken English NCERT curriculum framework. Besides the training Lab; and Iken Learning Labs. The partnership will courses, NCTE will also work in the areas of distance help the schools teach their students with the help education and information communication of interesting animations, videos, real-life concept technologies (ICT) in teacher education, and will applications. bring new accreditation and innovative programs in teacher education. Opportunities in the sector AICTE planning new colleges and courses RTE expected to bring radical changes in education sector AICTE is planning to introduce new flexible, dual degree and integrated courses in management. Starting from academic year 2012–13, the students One of the major news for education sector was the will be able to join the undergraduate courses, after Supreme Court’s ruling in Right of Children to Free completing class XII. Once through with the three and Compulsory Education Act (RTE), 2009. The year undergraduate course, they can then study for court has upheld the constitutional validity of the another year, get applied management credit and RTE act, and has directed all schools — including join the industry. After their stint with the industry, privately–run schools — to admit at least 25% students can rejoin the course — study for another students from socially and economically backward year — and obtain a masters degree in applied families, starting academic year 2012–13. management. The five–year course will have a common entrance test at first year. These students will be provided free education in the private schools from classes I–VIII, against which AICTE has also released a list of 102 new colleges. the schools will get subsidy from the government. Out of the total 669 proposals for new colleges, the 65% of the subsidy will come from the central and selected 102 ones will provide 2.5 lakh new seats for 35% from state governments, and will be based on professional courses. AICTE already looks after 3,393 government’s expenditure in educating same engineering colleges and 4,000 management number of students in Kendriya Vidyalayas. institutes — which have capacity to accommodate 14.9 lakh and 3.5 lakh students respectively.© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 7
  • 8. Business in Education April 2012 IGNOU to receive grant from Japan The guidelines — which will not be applicable on scientists conducting new molecular research — will impact research institutes, hospitals, laboratories Indira Gandhi National Open University (IGNOU) and other educational institutions. These guidelines has received INR47crore (US$9.5 million) grant from have been framed based on the duties of the the Government of Japan. The grant has come in Committee for the Purpose of Control and form of Japanese government procuring and Supervision of Experiments and Animals (CPCSEA), providing a range of equipments to augment the ICT under Section 15 of the Prevention of Cruelty to infrastructure of IGNOUs Electronic Media Animals Act (1960). Production Centre. IGNOU has already received the equipment, while its installation and operational training is yet to be completed. The ministry has asked the educational and research institutions to replace animals with digital alternatives. Products such as CDs, videos or other This is the third grant-in-aid from Japan and will be computer applications — which can teach the used in digitalization and program production of anatomy without hurting the animals, will now be IGNOU. The university has earlier received Japanese used by educational and research institutions. grant-in-aid in 1988 and 1993 for improvement of educational facilities. Other Prominent Trends in the Schools and research institutes to Sector switch to virtual dissection Government to increase spending on The ministry of environment and forests (MoEF), education Government of India, has recently issued a ban on use of live animals in educational and research institutions. The guidelines have opened up new The government has increased proposed spending opportunities for educational application providers, in education sector in Union Budget 2012–13. The to replace live experiments with simulation based spending has been increased by 18%, from applications. INR52,057 crore in 2011–12 to proposed INR61,427 crore in 2012–13. Approximately 75% (INR45,969 crore) of the total spending will go to school education and literacy, while the remaining 25% The ministry has issued guidelines to the Ministry of (INR15,478 crore) will be allocated to higher health and family welfare, University Grants education. Commission, Medical Council of India, and Pharmacy Council of India to stop dissection and experiments with live animals — and replace them with digital alternatives.© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 8
  • 9. Business in Education April 2012 Few of the major projects on which government will The credit will be provided to the Rashtriya focus more are the Right To Education (RTE) Act Madhyamik Shiksha Abhiyan (RMSA) program — a under the Sarva Shiksha Abhiyan, where the flagship program by government of India for allocations are increased by 21.7% to reach improving quality and accessibility of secondary INR25,555 crore; mid–day meals program, which has education. Under the RMSA program, the witnessed increase of 15%, reaching INR11,937 government has plans to expand and renovate crore; and Rashtriya Madhyamik Shiksha Abhiyan approximately 60,000 government run secondary (RMSA) program for secondary education, which has schools; upgrade 44,000 upper primary schools; and seen an increase of 29%, reaching INR3,124 crore. build 11,000 new secondary and senior secondary schools in underserved areas. Government is also planning to build 6,000 new schools under the XII 5–year plan, and is expected to Tripura introducing subject on human go for Public Private Partnership for 2,500 of them. rights Tripura has become the first state in the country to World Bank to provide credit for RMSA introduce human rights as one of the subjects in program school curricula. The state government has introduced the subject — titled human rights in social and political life — as a part of social World Bank has approved a US$500 million education subjects for class VI — VIII students. (INR2,500 crore) credit to support its secondary education project in India. The organization will use The subject will be taught in schools in three phases, its concessionary lending arm — International and help in making students aware of their Development Association (IDA) — to provide the constitutional and legal rights. The government has credit for making quality secondary education been distributing a book on Human Rights education accessible to Indians. IDA provides interest-free in approximately 50 schools since 2006, and will now loans with 25 years to maturity and a grace period of take help of the State Council of Educational five years. Research and Training (SCERT) to publish new textbooks for the course. Check out our following reports on various subsectors of Indian Education Check out our following reports on various subsectors of Indian education: Preschool Education – Market Entry Strategy and Feasibility Report Game Based Learning in India – Potential Market Size And Feasibility Report Market Size and Feasibility of Online Tuition in India — Research Report Potential Market Size of Mobile Education in India – Research report Visit www.indalytics.com© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 9
  • 10. Business in Education April 2012Companies’ Score Card Market Debt- Price- Price Operating Equity Equity change Margin Net Margin Ratio EPS Ratio March 15– Q3-2012 Q3-2012 Q3-2012 Q3-2012 April 16, April 16 (%) (%) (%) (INR) 2012 2012 (%)ComputerSoftwareTraining Aptech Ltd. 15.4% 17.9% 0.0% 0.88 99.06 (16.8)%ComputerSoftwareTraining BITS Ltd. (56.7)% 14.2% 0.5% 0.00 N.A. 0%ComputerSoftwareTraining NIIT Ltd. 1.3% 36.4% 60.0% 3.38 14.16 (1.3)% Software TechnologyERP for GroupEducational InternationalInstitutions Ltd. N.A. N.A. 112.7% N.A. N.A. (1.3)%ICT Birla ShlokaSolutions Edutech Ltd. 4.0% 1.9% 15.8% 0.56 15.04 (16.0)%ICT CompucomSolutions Software Ltd. 54.3% 11.8% 33.3% 0.26 45.73 (5.9)% CORE Education andICT TechnologiesSolutions Ltd. 39.8% 18.9% 82.9% 4.35 65.48 1.7%ICT EdservSolutions Softsyst Ltd. 12.9% 4.2% 3.4% 0.41 60.73 (32.5)%ICT EducompSolutions Solutions Ltd. 32.3% 15.4% 55.7% 4.27 45.34 (6.2)%© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 10
  • 11. Business in Education April 2012 Market Debt- Price- Price Operating Equity Equity change Margin Net Margin Ratio EPS Ratio March 15– Q3-2012 Q3-2012 Q3-2012 Q3-2012 April 16, April 16 (%) (%) (%) (INR) 2012 2012 (%) Everonn ICT Education Solutions Ltd. 23.3% (7.4)% 47.0% (3.00) 0.00 (13.2)% Comp-U- Learn Tech IT Education India Ltd. 14.3% 2.7% 2.8% 0.05 239.20 (31.1)% Jetking IT Education Infotrain Ltd. 17.0% 7.3% 12.9% 0.98 57.76 (9.3)% Tree House Education & School Accessories Education Ltd. 51.7% 27.0% 26.3% 1.82 111.32 (5.7)% School Education Zee Learn Ltd. (88.0)% (100.1)% 44.5% (0.48) 0.00 (14.5)% Career Point Infosystems Tuitions Ltd. 41.4% 40.8% 0.0% 6.32 31.48 (6.9)%© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 11
  • 12. Business in Education April 2012List of Institutions and OrganizationsAcrossWorld Education Intel CorporationAptech Ltd. Jetking Infotrain Ltd.Axis Bank Kaziranga UniversityBharti Airtel Ltd. Manipal Global Education ServicesBirla Institute of Technology, Mesra Microsoft CorporationBirla Shloka Edutech Ltd. NIIT Ltd.BITS Ltd. Securities and exchange board of IndiaCareer Point Infosystems Ltd. Signal Hill Capital Advisory India Private Ltd.Compucom Software Ltd. Signal Hill Capital Group LLCComp-U-Learn Tech India Ltd. Software Technology Group International Ltd.CORE Education and Technologies Ltd. Tree House Education & Accessories Ltd.EdServ Softsyst Ltd. University of PlymouthEducomp Solutions Ltd. University of South CaliforniaEveronn Education Ltd. USC Rossier School of EducationGo–Tech Zee Learn Ltd.© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 12
  • 13. Business in Education April 2012Keep yourself updated by subscribing to Business in EducationBusiness in Education is a monthly report, targeted at the supply side of Indian education sector. The magazine isdemanded by the key decision makers of educational institutions and service providers.Our readership spans across directors and trustees of educational institutions, to CEO/directors of companies thatprovide services to educational institutions. Report’s readership - though primarily concentrated in India – isscattered across countries such as the US, the UK, Russia, UAE, Australia etc.You can subscribe to the report by taking our annual subscription. Subscribing to our report will help you in thefollowing ways: • You will remain updated on latest trends and opportunities in the education sector • You will be able to take fast and accurate business decisions • You will save your costs of hiring a consultant, or a team for same purposeVisit Indalytics.com to know about our subscription rates.© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 13
  • 14. Business in Education April 2012 Disclaimer The information contained in this report is of a general nature and is not intended to address any particular individual or entity’s circumstances. Although proper care has been taken to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Indalytics Advisors do not guarantee the company name provided by the readers to be accurate. It is understood that by receiving the report, the readers allow Indalytics Advisors to use their organizations’ name in its list of readers. If the readers have any objection to it, then they should report it to Indalytics Advisors immediately. Before subscribing to the report and paying for subscription, Indalytics Advisors strongly recommends readers and subscribers to read the terms of use on their website. Anyone paying for subscription will be deemed to have read and understood the terms of use mentioned on the website. Their absence of objection will be treated as their approval to use their and their organizations’ name in this report. Indalytics Advisors Private Limited does not guarantee that the information contained in this report is authentic and reliable. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. If you want to advertize your products and services through this report, then please write to us at business@indalytics.com Publication Volume: 12-004 Publication Date – April 2012 © 2012 Indalytics Advisors Private Limited For further information, please contact businessineducation@indalytics.com© Indalytics Advisors l www.indalytics.com l businessineducation@indalytics.com 14

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