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Market Research Report : E-learning Market in India 2012


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E-learning market in India was valued at INR 18.41 tr in 2010-11 and is expected to grow at a CAGR of 20%. Increasing internet penetration, low existing coverage and rising demand are expected to develop this market strongly in the near future. This sector has attracted large investments and is slated to lead to strong growth opportunities for the education sector.

The report begins with an introduction to the education market in India and its various sub-segments. Indian education system largely consists of formal and informal sectors, with the formal sector accounting for the major share. A macro overview of the Indian education system is also included, which throws light on some of the key indicators such as literacy rate in India, demographic split in education, budget allocation for education and five year plan outlay for education.

The market overview section gives an insight into the overall education market in India along with the e-learning market, their market size and growth. It is followed by the segmentation in the e-learning market, comprising multimedia in private schools, ICT in public schools and online education, along with their respective shares. The value chain, primarily consisting of content suppliers, technology providers and end consumers, is also included. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.

An analysis of the drivers and challenges explains the factors leading to the growth of the market including low education coverage, rising demand from various segments, growing personal computers and internet penetration, increasing government participation and convenience factors. Strong opportunity exists in the market due to low coverage of education in India. This coupled with the fact that demand from other education segments are rising, will drive the e-learning market. The key challenges identified are accreditation and recognition issues, expensive mode of education and lack of awareness and acceptance.

Key trends in the market have also been analysed which includes PE/VC investments in e-learning segment, proliferation of e-learning devices, foreign universities offering online courses and focus on digital content for schools. Recently, the education sector has seen many PE/VC deals in e-learning segment on the back of growing demand for digital content in schools and online courses. Moreover, online courses are now being offered by foreign universities and even e-learning devices have increasingly become popular.

The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. A bubble chart for the public companies, depicting their relative positions in the market with respect to total income, net profit/loss and market capitalization is included. Similarly, a

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Market Research Report : E-learning Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortE‐Learning Market –E Learning Market IndiaFebruary 2012
  2. 2. Executive Summary  E‐learning market in India is still at a nascent stage and is expected to witness dynamic growth  It was valued at INR x bn in 20‐‐ and is expected to reach INR y bn in 20‐‐  It is an emerging education segment and includes multimedia in private schools, ICT in public schools as well  Market as online education  E‐learning value chain primarily consists of content suppliers, technology providers and end consumers  Emerging segments such as e‐learning will lead to strong growth opportunities in India’s education market  Drivers Challenges – Low education coverage Low education coverage – Accreditation and recognition issues Accreditation and recognition issues Drivers &  – Rising demand from various segments – Expensive mode of education Challenges – Growing PC and internet penetration – Lack of awareness and acceptance – Increasing government participation – Convenience factors  PE/VC investments in e‐learning segment  Proliferation of e‐learning devices Trends  Foreign universities offering online courses  Focus on digital content for schools Major PlayersCompetition p Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 E‐LEARNING MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges•Drivers & Challenges•Trends•Competition•Strategic Recommendations•Strategic Recommendations•Appendix E‐LEARNING MARKET IN INDIA 2012.PPT 3
  4. 4. Indian education system consists of formal and informal  sectors Education Sector in India – Introduction Indian Education System x% y% Informal Education  Formal Education System System y Schools  Higher  Vocational  Coaching  Pre‐schools (K12) Education Training Classes Public Private Public Private E‐Learning Books Scope of the report Indian education system is dominated by the core sectors of higher education and schools (K12), which account  y y f g ( ), for ~z% of the total consumer spends in the marketSource: E‐LEARNING MARKET IN INDIA 2012.PPT 4
  5. 5. E‐learning and other emerging segments will help the  education market in India to grow strongly  Education Market in India – Overview Market Size and Growth • Education is one of the largest service sectors in India  and is poised to become one of the best globally INR tr • The sector has attracted large investments with more  than half of the market being funded privately a% • Indian education market has witnessed lot of  developments and changes over the last few years,  mostly towards increasing coverage and quality mostly towards increasing coverage and quality • Emerging segments such as e‐learning will lead to  0.0 strong growth opportunities in the education market  2010 2011e 2012e 2013e 2014e 2015e E learning Market in India  E‐learning Market in India – Overview Market Size and Growth Market Size and Growth • E‐learning market in India is still at a nascent stage  and is expected to witness dynamic growth over the  INR bn next few years • It is an emerging education segment and includes It is an emerging education segment and includes  b% multimedia in private schools, ICT in public schools as  well as online education • Increasing internet penetration, low existing  coverage and rising demand are expected to develop  this market strongly in the near future 0 2010‐11 2011‐12e 2012‐13e 2013‐14e 2014‐15eSource: E‐LEARNING MARKET IN INDIA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Challenges Low education coverage Accreditation and recognition issues Rising demand from various segments Expensive mode of education Growing PC and internet penetration Lack of awareness and acceptance Increasing government participation Convenience factors E‐LEARNING MARKET IN INDIA 2012.PPT 6
  7. 7. Trends – Summary PE/VC investments in e‐learning  g segment Proliferation of e‐learning devices Focus on digital content for  Foreign universities offering  schools online courses E‐LEARNING MARKET IN INDIA 2012.PPT 7
  8. 8. Players in the e‐learning space are increasingly focusing on  providing digital content to schools Focus on Digital Content for Schools E‐learning players are focusing on schools which are moving from traditional black board to digital content  to enhance effectiveness of teaching Company 1 Company 2 • It has launched M, a digital learning solution for teachers  • K in association with L has launched P to help schools in K in association with L has launched P to help schools in  and students of Indian Schools, which will be available  d d f d h l h h ll b l bl rd to 8th and for science and  Madurai adopt digital learning with 3D technology and  for students of standard 3 make teaching‐learning sessions more interactive English only Company 3 Company 4 • It is planning to tie up with schools in Tier II and Tier III  • It has entered into a partnership with Z to provide high  cities to provide internet education to schools with basic  quality basic skills online courses for children aged 5‐12 computer laboratories and classes till standard VIII Company 5 Company 6 • It has launched D, an integrated learning solution for  • A and B have launched an e‐learning pilot programme, C  Indian schools, which includes an effective blend of  in five government higher primary schools, which will   classroom activities and interactive multimedia  demonstrations include digital instruction materials from  D include digital instruction materials from ‘DSource: E‐LEARNING MARKET IN INDIA 2012.PPT 8
  9. 9. Public: Domestic Company – Player (1/3) Company Information Offices and Centres – India  Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Ticker Symbol Stock Exchange Head Office Products and Services Products and Services Category Products/Services Key People Category 1 Category 1 Product 1, Product 2 Product 1 Product 2 Name N Designation D i ti A Category 2 Product 1, Product 2 B C DSource: E‐LEARNING MARKET IN INDIA 2012.PPT 9
  10. 10. Public: Domestic Company – Player (2/3) Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Total Income Net Profit/Loss Particulars  2010 2009 2008 2007 (2010‐09) INR mn INR mn Profitability Ratios Operating Margin 3000 Net Margin Profit Before Tax Margin 1000 Return on Equity Return on Capital Employed 0 -1000 Return on Working Capital 2007 2008 2009 2010 Return on Assets Financial Summary  Return on Fixed Assets Cost Ratios • The company incurred a net loss of INR a mn in FY 20‐‐, as compared  Operating costs (% of Sales) to net profit of INR b mn in FY 20‐‐ Administration costs (% of  • The company reported total income of INR c mn in FY 20‐‐,  Sales) Interest costs (% of Sales) Interest costs (% of Sales) registering a decrease of d% over FY 20‐‐ registering a decrease of d% over FY 20 Liquidity Ratios • The company earned an operating margin of e% in FY 20‐‐, an  Current Ratio increase of f percentage points over FY 20‐‐ Cash Ratio • The company reported debt to equity ratio of g in FY 20‐‐, an  Leverage Ratios increase of h% over FY 20‐‐ Debt to Equity Ratio Debt to Capital Ratio D b C i lR i Key Financial Performance Indicators Interest Coverage Ratio Indicators Value (Date/Month/Year) Efficiency Ratios Market Capitalization (INR mn) Fixed Asset Turnover Total Enterprise Value (INR mn) Asset Turnover Current Asset Turnover EPS (INR) EPS (INR) Working Capital Turnover PE Ratio (Absolute) Capital Employed TurnoverSource: Improved Decline E‐LEARNING MARKET IN INDIA 2012.PPT 10
  11. 11. Public: Domestic Company – Player (3/3) Key Business Segments Key Geographic Segments Segment 1 Segment 3 Country 1 Country 3 Country 5 Segment 2 Segment 4 Country 2 Country 4 0% 0% 2007 2008 2009 2010 2007 2008 2009 2010 Key Recent Developments Description  News • Player, which was formerly known as D, provides online education services from high school through to  professional education Overview • It provides A, a teaching and learning aid, skill development courses, preparatory courses for professional  exams, such as CA, CEMA, CWA, and CS, coaching for competitive exams, and also  operates a distance  education portal • It has recently launched B, an education solution to offer online education for students of Ninth to 12th  New product launch standards Geographical coverage • C primarily serves the United States, Singapore, the United Arab Emirates, and IndiaSource: E‐LEARNING MARKET IN INDIA 2012.PPT 11
  12. 12. Private: Domestic Company – Player (1/3) Company Information Offices and Centres – India  Corporate Address Tel No. Fax No. Website Year of Incorporation Head Office Other Offices Products and Services Products and Services Category Products/Services Key People Category 1 Product 1, Product 2 Name Designation Category 2 Product 1, Product 2 A B C DSource: E‐LEARNING MARKET IN INDIA 2012.PPT 12
  13. 13. Private: Domestic Company – Player (2/3) Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Total Income Net Profit/Loss Particulars  (2010‐09) 2010 2009 2008 2007 Profitability Ratios INR mn INR mn Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets 0 0 Cost Ratios 2007 2008 2009 2010 Operating costs (% of Sales) Administration costs (% of  Sales) Financial Summary  Interest costs (% of Sales) Interest costs (% of Sales) • The company earned a net profit of INR a mn in FY 20‐‐, as  Liquidity Ratios Current Ratio compared to net profit of INR b mn in FY 20‐‐ Cash Ratio • The company reported total income of INR c mn in FY 20‐‐,  Leverage Ratios registering an increase of d% over FY 20‐‐ Debt to Equity Ratio Debt to Capital Ratio b i l i • The company earned an operating margin of e% in FY 20‐‐, an  Interest Coverage Ratio increase of f percentage points over FY 20‐‐ Efficiency Ratios • In 20‐‐, the company’s debt to equity ratio showed a decrease  Fixed Asset Turnover of g% as compared to FY 20‐‐ Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed TurnoverSource: Improved Decline E‐LEARNING MARKET IN INDIA 2012.PPT 13
  14. 14. Private: Domestic Company – Player (3/3) Key Recent Developments Description  News • Player architects designs develops and markets technology‐based solutions and digital content for e‐ Player architects, designs, develops, and markets technology‐based solutions and digital content for e‐ learning businesses • X sold ~y% stake of its z in b for INR c mn Overview • It provides e‐Learning in K‐12, Higher Education, Publishers,  for corporates and also extends Tests and  Assessment and its e‐Learning services are used by more than 100 organizations and 20 mn end users  A t d it L i i db th 100 i ti d 20 d globally • M. signed an agreement with Excelsoft to impart on‐line classes on solar PV, solar thermal, energy  Collaborations efficiency and biofuel/biomass forms alternative energy Network • N has entered into a Joint Venture with Infinitas Learning to expand its network • P won the Best Performer ‐ Mysore Region award by the Government of Karnataka and Software  Awards and Recognitions Technology Parks of India in 2010Source: E‐LEARNING MARKET IN INDIA 2012.PPT 14
  15. 15. Thank you for the attentionThe E‐Learning Market ‐ India report is part of Research on India’s Education Industry Series. For more detailed information or customized research requirements please contact:Gaurav KumarPhone: +91 33 4064 6214E‐Mail: gaurav.kumar@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness 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.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on IndiaNetscribes (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. E‐LEARNING MARKET IN INDIA 2012.PPT 15