Market Research Report : Pre School Market in India 2012


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Indian preschool market is poised to grow at a tremendous pace as the market is under-penetrated. Higher disposable income among the middle class in India and the importance they attach to education will lead to further development of the pre-school market.

The report begins with an introduction to the Indian education market. Data suggests that the focus in India has been on primary education. It also provides the market size and growth of the Indian education sector. In the market overview section, the classification of Indian education system is highlighted and the current and estimated market size of the Indian pre-school (organized sector) is included with the market segmentation. The business model prevalent in the pre-school market has been depicted. Porter’s analysis helps to understand the dynamics in the preschool market in India.

Drivers identified include huge untapped market which gives ample opportunity for pre- schools to grow. Increase in disposable income acts as a driver for the pre-school market. Substantial improvement in the quality of pre-schools has led to further development of the market. Preschools are doubling up as they provide day care facilities as well. The middle class segment in India has always given impetus to education. Thus, pre-school market is expected to grow at a healthy rate in the future. Challenges identified include the various operational challenges including unavailability of quality teachers, limited target population as they cater only to a small target market in the vicinity. High rental costs also diminish the profitability of the pre-school. Other prominent challenge faced by the organized sector is overwhelming presence of the unorganized sector that does not follow any set standards towards imparting quality education.

Trends identified include corporate investments which have allowed for the expansion of various pre-schools all over India as well as given them the opportunity to scale up their infrastructural facilities. Corporate houses are interested too as there are no specific rules which guide the market. Other trends are that preschools are collaborating with various builders to bring down the cost of operations. They are also upgrading themselves to K-12 schools in order to get a captivated flow of students.

The competition section begins with a bubble chart which provides the relative positions of the players based on their revenue, net profit and market capitalization/asset value. The major players in the market have been profiled which includes a financial summary for each of the players. Key ratios and key contacts are also listed. The last section offers strategic recommendations for the players in the pre-school market.

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Market Research Report : Pre School Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortPreschool Market –Preschool Market IndiaApril 2012
  2. 2. Executive Summary  The education market is witnessing a healthy growth rate of A %  Focus is being given on imparting primary education Market  Organized pre school market is growing at a healthy rate of  B %  Pre school market is witnessing exponential growth as the companies are in an expansion spree Drivers: Challenges: – Untapped market – Operational challenges Drivers &  – Increase in disposable income – Large unorganized sectorChallenges – Improvement in quality – Change in urban lifestyle  Corporate Investments  Rapid expansion of pre schools Trends  Collaborations  Upgrading to K‐12 schools Major PlayersCompetition Player 1 y Player 2 y Player 3 y Player 4 y PRESCHOOL MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges•Drivers & Challenges•Trends•Competition•Strategic Recommendations g•Appendix PRESCHOOL MARKET IN INDIA 2012.PPT 3
  4. 4. Increased budgetary allocation in primary education will ensure growth of overall education sectorEducation Sector in India Market Size & Growth• The Indian education system consists of A  years of  formal schooling, with the mandatory teaching of  2.5 w E% English from class B  to class C  E li h f l B t l C 2.0• Indian education sector has seen investment by both  1.5 q government and private investors 1.0• The government spends approximately x % of the  0.5 GDP on education (20‐‐‐‐‐) GDP on education (20 ) 0.0  The government has given importance to education  20‐‐ 20‐‐e through schemes like ‘Sarva Shiksha Abhiyan’ which  ensures free primary education for all students – This is of primary importance as k % of the Indians will be working  age by 20 age by 20‐‐ Budget Allocation: Education – Allocation has been made for free mid‐day meals as well A Education • In order to bridge the gap between investments and  B Education demand,  the government is keen to adopt the public  Focus continues on B  private partnership model 800 17% education• Additionally, a new fund has been created which  R 600 Y gives money for higher education/ loan/ subsidy and  400 k % also to equip students with employability skills e %  This scheme is called “ABC ” 200 d % h % 0 20‐‐‐‐‐ 20‐‐‐‐‐ PRESCHOOL MARKET IN INDIA 2012.PPT 4
  5. 5. Preschool segment in India is experiencing high growth amidst growing awareness for pre‐schoolsMarket Overview Organized Market Size & Growth• The pre‐school  market is estimated to be INR B  bn  in 20‐‐ and likely to reach INR  C bn by 20‐‐ Y 60• Predominantly, this sector is dominated by the  K% unorganized sector 40• However, with the advent of various corporate  20 R T houses and expansion of the bigger players, the  Q W E share of organized sector is likely to increase h f d lk l 0• Playschools, popularly known as pre‐schools, cater to  20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐e 20‐‐e children between the age of one‐and‐a‐half and four  year; the time when children are too young to start  Organized vs. Unorganized Split (20‐‐) formal education formal education• Pre‐schools provide an environment which imparts a  K sector G Sector smooth transition of a child from informal homely  atmosphere to a formal schooling set‐up N %• Globally pre schools are primarily day care centres Globally, pre‐schools are primarily day‐care centres  while in India they are perceived as early training  grounds for children to develop skills and secure  admissions into a good school M % PRESCHOOL MARKET IN INDIA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Challenges Untapped market Operational challenges Increase in disposable income Large unorganized market Improvement in quality Changing urban lifestyle PRESCHOOL MARKET IN INDIA 2012.PPT 6
  7. 7. Trends – Summary Up‐grading to K‐12 schools Corporate investments Key  Trends Rapid expansion of pre  Collaborations schools PRESCHOOL MARKET IN INDIA 2012.PPT 7
  8. 8. Public : Domestic Company – Company 1Company Information Offices and Centres – India  Block ABCCorporate Address City XYZTel No. 123456Fax No. 1234567Website http://www.abc123com/ p // abc 3co /Year of Incorporation 20‐‐ City AProducts and ServicesProducts and Services Category Products/Services Key PeopleProduct 1 P1,p2,p3 Name N Designation D i ti ABC abc XYZ xyz MNO mno PVC PIPES MARKET IN INDIA 2012.PPT 8
  9. 9. Public: Domestic Company – Company 1Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Particulars  20‐‐ 20‐‐ 20‐‐ 20‐‐ Revenue Net Income (20‐‐‐‐‐) Profitability Ratios 6 x4 0.15 Operating Margin a1 a a2 a3 a4 x3 Net Margin b1 b b2 b3 b4 4 x1 x2 0.10 Profit Before Tax Margin c1 c c2 c3 c4 2 0.05 Return on Equity d1 d d2 d3 d4 Return on Capital Employed e1 e e2 e3 e4 0 0.00 Return on Working Capital f1 f f2 f3 f4 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets g1 g g2 g3 g4Financial Summary  Return on Fixed Assets h1 h h2 h3 h4 Cost Ratios• The company incurred a net profit of INR  A mn in FY 20‐‐, as  Operating costs (% of Sales) i1 i i2 i3 i4 compared to net profit  of INR B mn in FY 20‐‐ Administration costs (% of  j1 j j2 j3 j4• The company reported total Income of  INR X mn in FY 20‐‐,  Sales) registering an increase  of  r % over FY 20‐‐ registering an increase of r % over FY 20 Interest costs (% of Sales) Interest costs (% of Sales) k1 k k2 k3 k4• The company earned an operating margin of  d1  % in FY 20‐‐ an  Liquidity Ratios decrease of  k  %  points over FY 20‐‐ Current Ratio l1 l l2 l3 l4 Cash Ratio m1 m m2 m3 m4• The company reported debt to equity ratio of  g  in FY 20‐‐, an  Leverage Ratios increase of r % over FY 20‐‐ Debt to Equity Ratio n1 n n2 n3 n4Financial Summary  Debt to Capital Ratio 01 o o2 o3 o4 Interest Coverage Ratio p1 p p2 p3 p4 Indicators Value (DDD/MMM/YYYY) Efficiency RatiosMarket Capitalization (INR) a Fixed Asset Turnover q1 q q2 q3 q4Total Enterprise Value (INR) b Asset Turnover r1 r r2 r3 r4EPS (INR)EPS (INR) Current Asset Turnover Current Asset Turnover s1 s s2 s3 s4 c Working Capital Turnover t1 t t2 t3 t4PE Ratio (Absolute) d Capital Employed Turnover u1 u u2 u3 u4 Improved Decline PVC PIPES MARKET IN INDIA 2012.PPT 9
  10. 10. Public: Domestic Company – Company 1.Key Business Segments  Key Geographic Segments  Enamelled Wire and Strips India 6,000 6,000 6 000 c1 d b1 c 4,000 4,000 b a1 a 2,000 2,000 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Key Recent Developments Description  NewsOverview • It sells product A under the brand name of ‘abg’ & ‘def’Production facilities • In India the company has k manufacturing hubs and  j marketing offices Shareholding pattern • Promoters of the company hold j % of the share while k % is held by general publicClients • Clients are spread across ghj countries spanning across t continentsInvestments • The company wants to invest INR K mn in a company through a  joint venture in Country 2  producing product a and product b producing product a and product b • So far the company invested INR 0.C mn in company A in country A PVC PIPES MARKET IN INDIA 2012.PPT 10
  11. 11. Thank you for the attentionThe Pre‐school Market in India 2012 report is a part of Netscribes’ Education Industry Series. For more detailed information or customized research requirements please contact: Gaurav Kumar E‐Mail: sales@netscribes.comAbout NetscribesNetscribes 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 Netscribes (India) Pvt Ltd or “Netscribes” is not responsible for any loss or damage arising from use of this document This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. PRESCHOOL MARKET IN INDIA 2012.PPT 11