Vocational Training - India March 2009

Executive Summary SAMPLE Drivers: Demand for skilled labour in service and IT/ITeS industries; inefficient public education system; competitive business environment Challenges: Poor perception and lack of support from financial institutions Market Drivers & Challenges Trends Competition Partnerships between corporates and vocational training institutes Public private partnerships (PPP) for government-owned Industrial Training Institutes (ITI) Rising demand for online training modules and correspondence courses in language training PE/VC firms bullish on Indian education sector; investing in vocational institutes as well Private sector Estimated worth USD XX bn in 2008 Growth of a% p.a. to reach USD YY bn by 2012 English language training is the largest segment followed by Financial Services, Retail and IT Government encouraging private sector participation although latter are not regulated A highly competitive market with players focusing on specific areas and expanding across India Major players: J H F D B I G E C A Aviation/Hospitality Information Technology Retail Financial Services English

Drivers: Demand for skilled labour in service and IT/ITeS industries; inefficient public education system; competitive business environment

Challenges: Poor perception and lack of support from financial institutions

Partnerships between corporates and vocational training institutes

Public private partnerships (PPP) for government-owned Industrial Training Institutes (ITI)

Rising demand for online training modules and correspondence courses in language training

PE/VC firms bullish on Indian education sector; investing in vocational institutes as well

Private sector

Estimated worth USD XX bn in 2008

Growth of a% p.a. to reach USD YY bn by 2012

English language training is the largest segment followed by Financial Services, Retail and IT

Government encouraging private sector participation although latter are not regulated

A highly competitive market with players focusing on specific areas and expanding across India

Major players:

Market Overview Drivers & Challenges Trends Competition Key Developments

Market Overview

Drivers & Challenges

Trends

Competition

Key Developments

The private vocational training market is in its nascent stage and is highly fragmented with strong growth prospects Vocational training market is estimated to be worth USD XX bn in 2008 Expected to grow at a% CAGR to reach USD YY bn by 20-- A developing market with strong opportunity for new players Private players operate free of any regulations i.e. no governing/ regulatory bodies SAMPLE Overview Market Size and Growth Market Segmentation Source: a% f% Stationery g% Child skill development i% Pre-school h% E-learning etc K-12 b% Professional colleges c% Tutoring d% Test preparation e% Vocational training 2008 V 2009e W 2010e X 2011e Y 2012e U a% USD mn Private Education Industry (USD 40 bn) Others a% English Training b% Financial Services c% Retail d% IT e% Airlines f%

Vocational training market is estimated to be worth USD XX bn in 2008

Expected to grow at a% CAGR to reach USD YY bn by 20--

A developing market with strong opportunity for new players

Private players operate free of any regulations i.e. no governing/ regulatory bodies

Drivers and challenges Inefficiency in public education system Drivers Demand for skilled workforce increasing with the growth in services sector Strong demand from the IT boom Increasingly competitive business environment Individuals perception Challenges Lack of financial institutions support

Key Trends SAMPLE Trends Government encouraging public private partnerships Demand for online and correspondence courses Partnerships between corporates and institutes PE/VC firms showing interest in education sector

SAMPLE Note: The list is not exhaustive Source: Competitive Landscape (1/4) SAMPLE They have been focusing on accounts related and share market related courses Z Founded in 19-- - --, currently has U centers of with V are owned F Focuses on English language training Number of centers to increase to Z by 20-- Growing due to a mi x of owned and franchisee outlets They have trained XX mn students ~U Started in 19--, U centers A Main presence is in Delhi with franchises in Punjab and near Delhi Imparted training to YY mn students V Started in 19--, V centers B Training directed towards application in corporate and retail spheres ~W Started in 19--, W centers C Financial Entered into a partnership with HDFC bank for training their students They have provided education to ~ U students U Founded in 20--, has presence in V locations G English Language Educated over B mn students X Started in 19--, currently owns X and has franchised Y centers D Business Focus Revenue in INR mn (FY08) Overview Institutes

They have been focusing on accounts related and share market related courses

Focuses on English language training

Number of centers to increase to Z by 20--

Growing due to a mi x of owned and franchisee outlets

They have trained XX mn students

Main presence is in Delhi with franchises in Punjab and near Delhi

Imparted training to YY mn students

Training directed towards application in corporate and retail spheres

Entered into a partnership with HDFC bank for training their students

They have provided education to ~ U students

Educated over B mn students

Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Vocational Training report is a part of Research on India’s Education Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on