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Market Research Report: K12 Education Market In India 2010

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The kindergarten to grade 12 (K12) market in India accounts for a substantial share of the total education market. This segment is estimated to be worth INR 20 bn and is expected to be growing at 14% per annum. This space has seen large scale public and private participation. The government has undertaken various initiatives towards developing the market. The large prospective student population is fuelling growth in this sector.

The report begins with an introduction to the education system in India including the various segments and their regulatory status in the country. The overview section indicates the market size and growth, the distribution of schools across private and public sector, enrollment levels, segmentation of schools and the market share of each segment in the K12 market. The following section includes information regarding the entry route and the regulations governing the establishment of a K12 institution. It covers the various costs entailed during development and the revenue models and estimated profit margins in the market. The market size, growth and return on margins for players providing multimedia content and Information & Communication Technology (ICT) services to the K12 market. The operational model has also been discussed.

The fundamental drivers in India has been discussed including a growing middle class with the ability to afford a private education, demographic advantages, consumers preferring private to public schools, growing opportunity for ICT services in K12, low gross enrolment ratio (GER) and high dropout rates and low penetration of multimedia content in schools. The key initiatives of the government identified include the Right of Children to Free and Compulsory Education Bill, increase in public private partnerships (PPP), private schools adopting hybrid teaching methods, Sarva Abhiyan (SSA Shiksha), Mid-day Meal Scheme, major expenditure on elementary and secondary education and other initiatives.

The competition section highlights the major private players in the K12, ICT and multimedia market including their business focus and expansion plans.

Published in: Education, Business

Market Research Report: K12 Education Market In India 2010

  1. 1. K12 Market in India 2010 March 2010
  2. 2. Executive Summary K12 market valued at USD XX bn in 20--; Expected to grow at a% p.a. to USD YY bn Market Majority of the market is dominated by the private unaided premium schools b% of the institutes in K12 are privately owned LE Entry Route, Market entry mechanisms Cost and Cost entailed in the development of an institution Revenues P Profit avenues available to players M Growing middle class with the ability to afford a private education Fundamental Drivers SA Demographic advantages Consumers preferring private to public schools Growing opportunity for ICT services in K12 Low gross enrolment ratio (GER) and high dropout rates Low penetration of multimedia content in schools The Right of Children to Free and Compulsory Education Bill Increase in Public Private Partnerships (PPP) Private Schools Adopting Hybrid Teaching Methods Government Sarva Abhiyan (SSA Shiksha) Initiatives Mid-day Meal Scheme Major Expenditure on Elementary and Secondary Education Other Initiatives K12 MARKET IN INDIA 2010.PPT 2
  3. 3. •Education System in India •Market Overview •Entry Route, Cost and Revenues •Fundamental Drivers •Government Initiatives •Competition •Key Developments K12 MARKET IN INDIA 2010.PPT 3
  4. 4. Indian education system comprises of formal and informal network of educational institutes Indian Education System LE Formal Education System Informal Education System M HigherP Coaching Vocational A Schools (K12) Pre- Schools Education* Classes Training Public Private Public S Private Multimedia in schools and colleges Books • Under the purview of the Ministry of R • Informal Education system is M regulations • L central governing body for K12; C by B1/B2/B3/B4 • A governed by B regulatory body • Institutions in the formal education space D operate P institutes set up under a J Source: K12 MARKET IN INDIA 2010.PPT 4
  5. 5. Education industry in India has been growing steadily with major contributions from K-12 and higher education Overview Total Education Market Size and Growth • The education industry in India is valued at USD U bn in 20-- USD bn a% Y • It is expected to grow at a a% CAGR to USD Y bn by 80 X LE W 20-- 60 V U P • Current public spending on education in India is ~ g% 40 of GDP M Central government accounts for r% of the total 20 A expenditure while State government accounts for t% 0 • India’s literacy rate stands at q% Structure – K12 Market K12 Institutions S 2008 2009e Education Industry (USD U bn) 2010e 2011e 2012e Segment 1 d% Segment 2 Segment 3 Elementary Secondary b% Primary Upper Primary c% Kindergarden to Grade 5 Grade 6-8 Grade 9-12 Source: K12 MARKET IN INDIA 2010.PPT 5
  6. 6. K12 market in India has the largest potential among the segments in the education space Overview – K12 Market Private K12 Market Size and Growth •The expenditure on K12 market in India is USD bn estimated to be USD XX bn in 20-- 40 a% YY LE •Expected to grow at a% CAGR to reach USD YY 30 bn by 20-- XX P 20 •Majority of the market is dominated by the M 10 private unaided premium schools A 0 Segment 1 S1 S Segmentation of K12 Institutions Type of Private 2008 Market Segmentation of Private Schools Number Average Spend 2012e 100% P K12 Institutions Schools (USD/Annum) h% Segment 2 Type 1 N1 AS1 g% Disproportionate S2 Type 2 N2 AS2 enrolment f% Type 3 N3 AS3 Students Average number of students Market q% r% s mn Share Enrolled stands at I Source: K12 MARKET IN INDIA 2010.PPT 6
  7. 7. Drivers - Summary Growing middle class with the ability to afford a private education Demographic advantages Consumers preferring private to public schools Drivers` Growing opportunity for ICT services in K12 Low gross enrolment ratio (GER) and high dropout rates Low penetration of multimedia content in schools K12 MARKET IN INDIA 2010.PPT 7
  8. 8. Government Initiatives - Summary The Right of Children to Free and Compulsory Education Bill Increase in Public Private Partnerships (PPP) Private Schools Adopting Hybrid Teaching Methods Key Initiatives ` Sarva Abhiyan (SSA Shiksha) Mid-day Meal Scheme Major Expenditure on Elementary and Secondary Education Other Initiatives K12 MARKET IN INDIA 2010.PPT 8
  9. 9. Major Players in the K12 Market (2/2) Institute Network Business Highlights Company 1 Schools located in city • Offers a wide variety of academic courses through a network of schools, 1, city 2, city 3, city 4, colleges and institutions city 5 and city 6 • A conglomerate comprising A entities, more than B students and C faculty members Company 2 Network spans across • Established in 20-- D schools • Part of the E • Operates through a franchisee model Growth via greenfield projects/ conversion model, wherein companies take over an existing school • Plans on investing INR F bn towards developing G schools by 20-- Company 3 n schools in India • Started its first school in 19-- • By 20--, company 3 plans on opening schools in West Asia and in other Indian cities Company 4 I schools operational • Part of Company J • Operates through various models - owned, managed and JVs with reality players • Plans to have K schools by FY-- It allocated about USD L-M mn to ramp up Company N (K12 schools) and is expected to increase to USD O-P mn by 20- - Source: SAMPLE K12 MARKET IN INDIA 2010.PPT 9
  10. 10. Thank you for the attention The K12 Market in India 2010 report is part of Research on India’s Education Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 98364 71499 Phone: +91 98303 09715 E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com 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 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. 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. K12 MARKET IN INDIA 2010.PPT 10

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