Coaching classes have emerged as the prominent education system in India and is estimated to be worth USD6.8 bn in 2008. The coaching classes market consists of - Private tuitions market and Entrance Test preparation market. The market is highly fragmented and regional in nature. The report provides a brief overview of the coaching class market including market size, growth and key segments. An analysis of drivers explain factors contributing to the growth of coaching class market based on high teacher-pupil ratio in schools, increase propensity to spend among parents on child’s education and increasing competition at graduate and post graduate level. The key challenges identified include low scalability of private tuitions market, lack of government and financial aid and change in entrance test pattern. The key trends identified include increase in PE/VC investments, diversification of coaching institutes into mainstream education, increase in demand for online tutoring and correspondence coaching materials. Major players in the market are also identified including business model, key financials and expansion plans for each player.

1. Coaching Classes - India
March 2009

2. Executive Summary
Coaching class market in India is highly fragmented and regional in nature
Market Coaching class market i worth USD XX bn in 2008; expected to grow to USD YY bn by 2012
Market is divided into two parts – Private tuitions market and entrance test prep market
Private tuitions makes up x% of coaching class market but has limited potential to scale due to high
dependence on reputed local teachers
LE
Entrance test prep market is growing as this segment is process driven and easy to scale up
Drivers &
Challenges P
Drivers: High propensity to spend on education, growth in double income nuclear families, high
teacher-pupil ratio in schools and increase competition at graduation and post-graduation level
M
Challenges: Person centric business, lack of government and financial support and change in
SA
entrance test pattern
Coaching institutes are diversifying into mainstream education and opening pre - schools, K12
schools, B-Schools and vocational training institutes
Trends PE/VC firms also investing in coaching institutes with the capacity to scale operations
Institutes increase focus on online presence as demand for online tutoring picks up in India
Demand for correspondence coaching materials also increasing
Few players like AA have been able to scale up operations in fragmented tuition segment
Competition Incumbent players like BB, CC. have y% market share in MBA test preparation space
COACHING CLASSES – INDIA.PPT 2

3. Contents
•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
COACHING CLASSES – INDIA.PPT 3

4. Coaching class market is highly fragmented and regional in
nature
Overview Coaching Class Market (2008-2012e)
• Coaching classes accounts for major share of USD mn
Entrance Test Prep
the informal education market in India 15
Private Tuitions Z
• Coaching classes are a prominent feature in Y
X x%
10 x%
India that complements the mainstream W
LE
V x%
education system x%
x%
5 y%
P
y%
• Estimated worth USD XX bn in 2008 with high y% y% y%
growth potential
M
0
2008 2009e 2010e 2011e 2012e
A
• Market is highly fragmented and regional or
localized in nature
• Comprises of two segments:
S
Private Tuitions targeted primarily at students in
Grade 5 - 12
Coaching Class Market Break-up (2008)
Entrance Test Prep Market
x%
Entrance Test Preparation Market targeted at:
– Graduatelevel (engineering, medical, BBA etc)
– Post-graduation level (MBA, GMAT, GRE etc)
y%
Tutoring
Source:
COACHING CLASSES – INDIA.PPT 4

5. Drivers and challenges
Challenges
Drivers Person – centric business
High propensity to spend on
education Change in entrance test pattern
Growth in double income nuclear
Lack of government and financial
families
institutions support
High teacher-pupil ratio in school
Increase competition at graduate and
post-graduate level
COACHING CLASSES – INDIA.PPT 5

6. Key Trends
Coaching institutes enter PE/VC firms showing interest in
mainstream education education sector
Trends
Demand for correspondence Increasing demand for online
coaching materials increasing tutoring in domestic market
COACHING CLASSES – INDIA.PPT 6

7. Private tuitions market is highly fragmented with limited
organized players
ABC Ltd
• Overview: Started in 19-- and currently has x centers and y teachers. Cope of operations limited to
Maharashtra with small presence in South India, Gujarat and one center in Dubai.
LE
• Business Model: ABC Ltd is primarily in subject based tutoring across school and college level. The
P
company follows both owned and franchisee based model
M
• Financials: Recorded revenues of INR -- mn and plans to increase to INR -- mn by 2010
SA
• Expansion Plans: ABC Ltd plans to grow organically within Maharashtra and inorganically outside
the state in the tuitions segment. Company has also entered mainstream education by opening x
owned preschools and plan to scale up through franchisee route
Other Key players in Private tuition market (including online tutors)
Institute History Current network Business Focus
AA Started in 19-- -- centers •Private tuitions for schools. Also present in test prep market
BB Started in 19-- -- centers • Coaching for Commerce Stream. Specialized in CA/CS coaching
CC Started in 20-- Online • Charges USD X/hr. ~xx tutors
• In 20--, ABC acquired x% stake
DD Started in 20-- Online
• Online tutoring for school and test prep.
• Online tutoring for college and graduate level programs in over 30 subjects
EE Started in 20-- Online
• Employs over AA tutors. Charges US$ X/month for unlimited tutoring
Source:
COACHING CLASSES – INDIA.PPT 7

8. Thank you for the attention
The Coaching Classes report is a part of Research on India’s Education Industry Series.
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Gagan Uppal Gaurav Kumar
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COACHING CLASSES – INDIA.PPT 8