Research work for scenario of voccational training in india educomp


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I did an Intensive research on Vocational education market in idia An approach note on the understanding of the vocational education market, competition, gaps, and opportunities.
- One Big idea which is transformational and is disruptive.
- A lot of our work will be below the line, so a note on abilities in that area will help.
- Media strategy- so a note/pitch on the media buying partner will be required. You can also bring them in for the pitch.

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Research work for scenario of voccational training in india educomp

  1. 1. Status of Education and Vocational Education in India <ul><li>India’s youth, often referred to as its demographic dividend, accounts for over 50 per cent of its total population, with 367 universities and 18,000 colleges with half-a-million teachers and about 11 million students on the rolls. As mentioned earlier as a country we must use this demographic dividend to our advantage. In the last five years there are about 1,500 management colleges, close to about 3,500 engineering colleges and about 1,200 medical colleges. </li></ul><ul><li>India’s education sector currently offers an estimated US$40 billion market, with a potential 16% five-year CAGR.This spans the kindergarten through </li></ul><ul><li>grade 12 (K-12) segment (US$20 billion), </li></ul><ul><li>private professional colleges (US$7 billion) </li></ul><ul><li>tutoring (US$5 billion), </li></ul><ul><li>vocational training (US$1.4 billion), </li></ul><ul><li>test preparation (US$1.7 billion), </li></ul><ul><li>and preschools (US$1 billion). </li></ul><ul><li>The government spending on education is close to 4.5% of the GDP. </li></ul>
  2. 2. <ul><ul><li>Indian education system largest in Common wealth countries and 2nd largest in the world next to USA. </li></ul></ul><ul><ul><li>Tremendous Growth since Independence, but still: </li></ul></ul><ul><ul><li>The gross enrolment ratio </li></ul></ul><ul><ul><ul><ul><li>Classes (I-V) (6-11 years) 109.4% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (VI-VIII) (11-14 years) 71.15% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (I-VIII) (6-14 years) 94.92% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (IX-X) (14-16 years) 52.26% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (XI-XII) (16-18 years) 28.54% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Higher Education (18-24 yrs) 11.61 % </li></ul></ul></ul></ul><ul><li>The drop out rate </li></ul><ul><ul><ul><ul><li>Classes (I-V) (6-11 years) 25.47 % </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (I-VIII) (6-14 years) 48.71 % </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Classes (I-X) (6-16 years) 61.59 % </li></ul></ul></ul></ul><ul><li>These high drop out rates from both primary and secondary school, combined with low enrolment rates at the higher levels deprive tens of millions of children of their full rights as citizens. </li></ul><ul><li>Source: Selected Educational statistics (Abstract) 2005-06, MHRD, Govt. of India </li></ul>
  3. 3. <ul><li>There are </li></ul><ul><li>6.57 lakh unemployed youth in Haryana, </li></ul><ul><li>3.44 lakh in Punjab, </li></ul><ul><li>7.93 lakh in Delhi, </li></ul><ul><li>43,000 in Chandigarh, </li></ul><ul><li>5.82 lakh in Himachal Pradesh and </li></ul><ul><li>84,000 in Jammu and Kashmir. </li></ul><ul><li>The highest number of unemployed youth was registered in </li></ul><ul><li>West Bengal (46.74 lakh), </li></ul><ul><li>Tamil Nadu (36.48 lakh), </li></ul><ul><li>Maharashtra (33.66 lakh), </li></ul><ul><li>Kerala (22.65 lakh), </li></ul><ul><li>UP (15.45 lakh), </li></ul><ul><li>Karnataka (12.94 lakh) and </li></ul><ul><li>Assam (11.69 lakh). </li></ul><ul><li>In India it has identified only about 170 trades and only 2-3% of the youth (15-29 yrs) goes in for formal vocational training . </li></ul>
  4. 4. South Rajasthan: Livelihoods under stress Alternative employment outside the farm sector in the region is negligible South Rajasthan is one of the pockets of heavy out-migration in India <ul><li>Low agriculture outputs: small land holdings, semi-arid conditions and recurring drought </li></ul>Poor livestock potential: inadequate fodder, water and degraded pastures
  5. 5. Vocational training and self-employment avenues <ul><li>Every year 5.5 million students pass out of Class X, of which 3.3 million go to Class XI, leaving 2.2 million out of the education stream. </li></ul><ul><li>Those who drop out after Class VIII are approx. 20-21 million. </li></ul><ul><li>Urgent attention needed for this 21 million-target group . </li></ul><ul><li>Available formal training capacity of the country - only 2.3 million students. </li></ul><ul><li>This leaves a gap of 18.7 million . The ITI system needs to be revamped to fill up this gap. </li></ul><ul><li>Among persons of age 15 years and above: </li></ul><ul><ul><li>Only 2 % had any type of technical degrees/ diplomas/ certificates. </li></ul></ul><ul><ul><li>The proportion was only 1% in the rural areas and 5 % in the urban. </li></ul></ul><ul><li>Only 40 % of the 55,000 instructors have undergone a full instructor-training course” (Urgent need to look into training of trainers) (Planning Commission). </li></ul>
  6. 6. Shortage of skill in Various Sectors <ul><li>The projected growth rates in industry and services sectors are expected to generate 60 millions job opportunities during 2006-12 and 156 million during 2006-16 </li></ul><ul><li>Semi-skilled and skilled labour : The shortage of factory workers and construction labourers is already being felt across industries. </li></ul><ul><li>Engineering industry is growing at a fast pace will be major requirement of skilled/talented manpower in this sector </li></ul><ul><li>Food industry is fast-expanding, need professional food scientists and technicians in great number. </li></ul><ul><li>Media and Entertainment : T he demand for animation production services from India is growing. This has opened up innumerable opportunities for students of Design, Fine Arts and Mass Communication. </li></ul><ul><li>Biotechnology sector : 80 % shortfall of doctorate and post doctorate scientists. </li></ul><ul><li>Food processing sector : 65 % shortfall of refrigeration mechanics, electricians’ etc. 70 % shortfall of food safety personnel </li></ul>
  7. 7. <ul><li>Additional 21 million new jobs in merchandise trade by 2009-10 </li></ul><ul><li>IT and BPO sector could employ 9 million persons directly and indirectly by 2010 </li></ul><ul><li>Raising the rate of growth of manufacturing to 12 % could create 1.6 to 2.9 million direct jobs annually, and another 2-3 times that number indirectly </li></ul><ul><li>Retail Sector - demand of 3-5 lakh trained people in the northern region alone by 2010. This sector would throw up 2 million employment by 2010. </li></ul><ul><li>Leather - Based on increased targets for export and domestic demand, it would generate 3 million additional jobs by 2022 </li></ul><ul><li>Civil Aviation - Needs 5400 pilots by the end of the 11th plan. Thereafter, there would be requirement of at least 150 pilots per year as replacements for retirements and normal attrition. </li></ul><ul><li>Construction sector with a current employment of over 30 million is to witness boom by an annual growth rate of 30% in infrastructure. It would translate large no. of jobs far short of the employable skill available </li></ul>
  8. 8. <ul><li>Health sector : Shortage of 5 lakh doctors and 10 lakh Nurses. </li></ul><ul><li>IT sector : Shortage of 5 lakhs (half a million) engineers. </li></ul><ul><li>Education sector : Faculty shortage of 25-40 percent. </li></ul><ul><li>Automobiles: employment expected to increase to 25million by 2015-16 from current 10.5 million, majority in the shop floor of auto manufacturing </li></ul><ul><li>Logistics: will grow in tandem with growth in trade, aviation and tourism </li></ul><ul><li>Banking and Finance sector : 50-80 percent personnel shortage. </li></ul><ul><li>Aviation sector : Severe shortage of pilots and ground duty officials. </li></ul><ul><li>Textile sector : employ 35 million directly, besides 55 million in its allied sector. Expected to generate additional 14million jobs by 2012 </li></ul><ul><li>Pharma sector : Severe shortage of top pharma scientists as research expenditure by pharma companies has quadrupled in the last 5 years. Thus there is a shortage of middle-level and junior scientists too. This has made salaries of top pharma scientists rise to US levels. </li></ul><ul><li>Project Management Services- this labour intensive sector will grow with growth in corporate structure, infrastructure & retail industry </li></ul><ul><li>Source: Data compiled from (FICCI report, New Delhi); (NASSCOM); (NASSCOM McKinsey Report 2006); (Press Release, Ministry of Com. & Ind. April 7, 2006); (Presentation made by NMCC to National Advisory Council, February 18, 2006) (IL&FS, 2008) </li></ul>
  9. 9. Competitors <ul><li>Advance Training Institutes Hyderabad Howrah Kanpur Chennai Mumbai Ludhiana </li></ul><ul><li>Institutions like Arena, Heights Jetking </li></ul><ul><li>Advance Training Institute for Electronics and Process Instrumentation Dehradun Hyderabad </li></ul><ul><li>Foreman Training Institutes Bangalore Jamshedpur </li></ul><ul><li>Model Industrial Training Institute Haldwani Calicut Jodhpur Cuttack </li></ul><ul><li>Regional Directorates of Apprenticeship Training Chennai Faridabad Hyderabad Kanpur Kolkata Mumbai </li></ul><ul><li>Apex Hi-Tech Bangalore </li></ul><ul><li>Big IT Institutions like NIIT, Aptech </li></ul><ul><li>Central Staff Training & Research Institute Kolkata </li></ul><ul><li>National Instructional Media Institute Chennai </li></ul><ul><li>Central Training Institute for Instructors Chennai </li></ul><ul><li>National Vocational Training Institute   Noida </li></ul><ul><li>Regional Vocational Training Institutes Allahabad Bangalore Hisar Indore Jaipur Mumbai Tura Thiruvananthapuram Kolkata Vadodara </li></ul>
  10. 10. <ul><li>Alt Training College </li></ul><ul><li>The ALT Training College is the largest and most sophisticated training college for the Apparel industry in the world. The College is equipped with world class state of the art, machinery, equipment and necessary tools to effectively conduct varying training activities, pertaining to Garment Production; Fashion Design & Pattern Making </li></ul><ul><li>Bharatiya Vidya Bhavan </li></ul><ul><li>In year 2002 Gandhi Peace Prize was awarded to Bharatiya Vidya Bhavan for its significant contribution towards spread of education , integration of the best of ancient and modem values and promotion of peace and harmony among all faiths and communities </li></ul><ul><li>Career Patri </li></ul><ul><li>Careerpatri is a comprehensive Career Exploration and Planning Toolkit that provides Education and Career Development Support to the School and College students, with the use of Psychometrics (a branch of psychology for measurement and analysis of student performance), and three of the most famous and widely accepted theories in the field of education and vocational psychology, practiced all over the globe. </li></ul><ul><li>Centre for Technology Training </li></ul><ul><li>Centre for Technology Training was launched in 1996 as an independant training provider in New Delhi , India with a focus to provide vendor neutral technology trainings in Networking, Telecom, Wireless, Convergence, E-Business and various infrastructure sectors using information & communications technologies. </li></ul><ul><li>Dhirubhai Ambani Institutes </li></ul><ul><li>Dhirubhai Ambani Institute of Information and Communication Technology. </li></ul>
  11. 11. <ul><li>Elements Akademia </li></ul><ul><li>Elements Akademia is a private limited company registered in NCR, India . It is fully funded by the management team and a group of angel investors , who are typically IIM alumni and mid/senior professionals from some of the world's most admired companies like Goldman Sachs , CSFB, GE, P&G, Bank of America etc. We have a BIG, BOLD vision to be the leader in high-quality job oriented courses in India and other developing countries. We have courses on Banking, Financial Services , Retail and Insurance being offered to students in North India and courses on LPO, KPO etc. in the pipeline - our focus on growth makes us continue to look at niche, as yet unexploited areas. We are based in Gurgaon, Bhopal, Jaipur, Kanpur and Lucknow in India. </li></ul><ul><li>Government M.H. College of Home Science and Science </li></ul><ul><li>Government M.H. College of Home Science and Science was founded in 1954 by Shri Parmanand Bhai Patel's firm Mohanlal Hargobinddas. The Home Science was started with the kind aid of Rs. One Lakh. In 1955 Mankunwar Bai College also got affiliated with this college. </li></ul><ul><li>IP-GATES </li></ul><ul><li>IP-GATES is an organization that provides comprehensive and most cost effective training on IT products and technologies. Through intense Certification Trainings we provide organizations and individuals with cutting edge bootcamp training & certifications </li></ul><ul><li>Jain Institute of Vocational Studies </li></ul><ul><li>Jain Institute of Vocational and Advanced Studies (JIVAS) was established in the year 1998. It was a vision of a true forerunner, Sri R Chenraj Jain, Chairman of Jain Group of Institutions (JGI) who kindled the thought for need based education. </li></ul><ul><li>KIIT College </li></ul><ul><li>To impart knowledge and world class Technical education in all important areas of Information Technology, Management and other Up-coming professional fields. </li></ul>
  12. 12. Gaps <ul><li>Disconnect between skills provided and skills required by the industry </li></ul><ul><li>Revision of course curricula lags behind the need of the industry </li></ul><ul><li>Out-dated machinery/ tools and technology </li></ul><ul><li>Skill demand of Services/ Unorganized Sector are largely unmet </li></ul><ul><li>Unsatisfactory employability of trainees because of poor quality of training </li></ul><ul><li>Shortage of trained instructors and low instructor training capacity in the country </li></ul><ul><li>Low prestige attached to vocational training </li></ul><ul><li>No Integration of vocational education at the school level </li></ul>
  13. 13. SWOT ANALYSIS <ul><li>Threats </li></ul><ul><li>High competitive & marketing forces . </li></ul><ul><li>Inadequate funding for vocational programs. </li></ul><ul><li>Economic slow down. </li></ul><ul><li>Minimum wage going up.   </li></ul><ul><li>Opportunities </li></ul><ul><li>India’s tremendous potential-Demographic </li></ul><ul><li>Big potential market in education Sector Service sector: 40 million jobs by 2020- 11th Plan Approach Paper </li></ul><ul><li>Retail sector: 115,000 jobs by 2020- Retailers Association of India </li></ul><ul><li>The Emerging sector has lot many verticles like Hospitality, Retail, sales ITES, insurance, Manufacturing, banking where there is huge gap in manpower demand and supply </li></ul><ul><li>India is the largest home for consumers of education services in the world. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Disconnect between skills provided and skills required by the industry </li></ul><ul><li>Unsatisfactory employability of trainees because of poor quality of training </li></ul><ul><li>Shortage of trained instructors and low instructor training capacity in the country </li></ul><ul><li>Outdated curriculum & lack of market orientation in vocational training institution </li></ul><ul><li>Strengths </li></ul><ul><li>Young, capable & dynamic human resources - Working age population to comprise over 63 % of the aggregate by 2016. </li></ul><ul><li>Big democracy, Big market & free media </li></ul><ul><li>Professional course with job guarantee. </li></ul><ul><li>Emerging promising sectors include Retail, Telecom, Construction, Hospitality, and Agribusiness/ food processing </li></ul>
  14. 15. <ul><li>India-focused PE firm Gaja Capital Partners invested 8.25 million dollars in Career Launcher. </li></ul><ul><li>SAIF Partners invested 10 million dollars in the English training academy Veta and ICA Infotech. </li></ul><ul><li>Some of the other listed companies in the education segment are Educomp Solutions, which posted a return of 374 per cent. </li></ul><ul><li>Everonn Systems, which got listed in August 2007, gave a return of 130 per cent in just five months. </li></ul><ul><li>The older names like Aptech and NIIT, fetched returns of 162 per cent and 124 per cent in 2007. This market also runs into crores of rupees. </li></ul><ul><li>Based on analysis on vocational education and training in India, the World Bank is supporting efforts to upgrade this sector with a US$250 million project. It will upgrade 400 Industrial training institutes (ITIs) as centers of excellence . </li></ul>