Market Research Report : Vocational Training Market in India 2012


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Vocational training market in India was valued at INR 90 bn in 2011 and is slated to grow at a CAGR of 23%. Government has set a target of preparing 500 mn skilled workers by 2022, as around 75-80 mn jobs will be created over the next 5 years and 75% of them will require vocational training. The market is poised for strong growth over the next few years owing to favourable government support.

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. This section also includes the vocational training policy framework present in India.

The market overview section gives an insight into the overall education market in India along with the vocational training market, their market size and growth. This is followed by the key segments and applications of vocational training. In India, it is present in both formal and informal sectors and has wide applications in areas such as IT, BFSI, retail, aviation and others. The education and vocational training structure in India is also provided. 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 huge demand for skilled workers, low vocational training penetration, increasing government expenditure, growth in service sector and inefficiency in formal education system. The key challenges identified are low quality of inputs and lack of finance.

The government participation in this sector has also been highlighted in the report, and includes government bodies, government initiatives and associated bodies. Ministry of Human Resource Development and Directorate General of Employment & Training are the two key government bodies in this sector. Government initiatives largely comprise of National Policy on Skill Development, Skill Development Initiative Scheme, Craftsmen Training Scheme, National Vocational Qualification Framework and National Vocational Educational Qualification Framework. Industry associations impacting vocational training segment constitutes of FICCI, CII and ASSOCHAM. Foreign collaborations in this sector include countries like UK, Canada, Germany, Switzerland and Australia. International bodies like International Labour Organization, World Bank and European Union, also contribute to the vocational education and training segment in India.

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Market Research Report : Vocational Training Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortVocational Training Market –Vocational Training Market IndiaApril 2012
  2. 2. Executive Summary  Vocational training market was valued at INR a bn in 20‐‐ and is slated to reach INR b bn in 20‐‐  It is likely to take off in a major way over the next few years, owing to strong government participation Market  Government has set a target of preparing c mn skilled workers by 20‐‐, as around d mn jobs will be created  over the next e years and f% of them will require vocational training Drivers Challenges – Huge demand for skilled workers – Low quality of inputs Drivers &  – Low vocational training penetration – Lack of finance Challenges – Increasing government expenditure gg p – Growth in service sector – Inefficiency in formal education system  Government BodiesGovernment   Government Initiatives Government InitiativesParticipation  Associated Bodies  Investments and M&A activity in vocational training  Corporates imparting vocational training Trends  Government encouraging public private partnerships Government encouraging  public private partnerships  Online and distance vocational courses Major PlayersCo pet t oCompetition Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers and Challenges•Government Participation Trends•Trends•Competition•Strategic Recommendations St t i R d ti•Appendix VOCATIONAL TRAINING 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 a% b% Informal Education  Formal Education System System y Schools  Higher  Coaching  Pre‐schools E‐Learning (K12) Education Classes Vocational  Public Private Public Private Books Training 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 ~c% of the total consumer spends in the marketSource: VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 4
  5. 5. Vocational training market in India is poised for strong  growth owing to favourable government support 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 x% • 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 • Stronger government support will lead to better  0.0 growth opportunities in the education market  2010 2011e 2012e 2013e 2014e 2015e Vocational Training Market – Overview Market Size and Growth • Vocational training market in India is likely to take off  in a major way over the next few years, owing to  INR bn strong government participation • Government has set a target of preparing a mn  skilled workers by 20‐‐ kill d k b 20 y% • Out of around c mn jobs that will be created over the  next d years, e% will require vocational training to  enhance the employability prospects • Huge demand‐supply gap also encourages the entry Huge demand supply gap also encourages the entry  0 of new players in this segment 2011 2012e 2013e 2014e 2015eSource: VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 5
  6. 6. Drivers & Challenges – Summary  Drivers Huge demand for skilled workers Challenges Low vocational training penetration Low quality of inputs Increasing government expenditure Lack of finance Growth in service sector Inefficiency in formal education  system VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 6
  7. 7. Vocational training market in India will largely be facilitated  by the huge demand for skilled workers Huge demand for skilled workers Impact • India faces a huge shortage of skilled workers at present with a large number of people lacking  adequate professional skills • Burgeoning demand‐supply gap in workforce has increased a growing need for vocational  training among Indians • By 20‐‐, around a mn jobs will be created, of which b% will require vocational training • Government has initiated lot of policies to bridge this gap, creating ample space for new players  to enter the market and help it grow • Entry of new players will be encouraged by the huge demand for skilled workers, which will  strongly drive the vocational training market in India Skilled Worker Base in India Skill d W k B i I di Annual Training Capacity A lT i i C it Increasing skilled  worker base will  mn act as a boon for  mn the vocational  training market training market Increasing training  capacity will help  develop the  0 0 market in India Existing training  New Entrants 2011 2022e capacitySource: VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 7
  8. 8. Trends – Summary Investments and M&A activity in  Corporates imparting vocational  g vocational training training Online and distance vocational  Government encouraging  public  courses private partnerships VOCATIONAL TRAINING 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 Stock Exchange Head Office Products and Services Products and Services Category Courses Key People Category 1 Product 1, Product 2 Name N Designation D i ti Category 2 Product 1, Product 2Source: VOCATIONAL TRAINING 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  2011 2010 (2011‐10) INR mn INR mn Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed 0 Return on Working Capital 2010 2011 Return on Assets Financial Summary  Return on Fixed Assets Cost Ratios • The company earned a net profit of INR a mn in FY 20‐‐, as  Operating costs (% of Sales) compared to net profit of INR b mn in FY 20‐‐ Administration costs (% of Sales) • The company reported total income of INR c mn in FY 20‐‐,  registering an increase of d% over FY 20‐‐ registering an increase of d% over FY 20 Interest costs (% of Sales) Interest costs (% of Sales) 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 • In 20‐‐, the company’s debt to equity ratio showed a decrease of g%  Leverage Ratios as compared to FY 20‐‐ Debt to Equity Ratio Debt to Capital Ratio b i l i Key Financial Performance Indicators Interest Coverage Ratio Indicators Value (03/04/2012) Efficiency Ratios Market Capitalization (INR mn) Fixed Asset Turnover Asset Turnover Total Enterprise Value (INR mn) Current Asset Turnover EPS (INR) ( ) Working Capital Turnover PE Ratio (Absolute) Capital Employed TurnoverSource: Improved Decline VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 10
  11. 11. Public: Domestic Company –Player (3/3) Key Business Segments Key Geographic Segments Segment 1 Segment 1 Segment 1 Segment 2 Segment 2 Segment 3 0% 0% 2011 2011 Business Highlights Description  News • Player is a global retail and corporate training solutions provider, with presence across a continents, and  has trained over b mn students Overview • It currently has more than c centres in India and d centres overseas across e countries and plans to add  more f centres by FY 20‐‐ • Player had joined hands with TRRAIN foundation to train retail staff from Shoppers Stop, HyperCity  Collaborations Lifestyle Capital Foods and Duster Total Solutions • It is the first IT education & training company in Asia to receive the ISO 9001: 2000 quality certification It is the first IT education & training company in Asia to receive the ISO 9001: 2000 quality certification Awards and Certifications • Player was ranked among Global Top 20 IT Training Companies by TrainingIndustry.comSource: VOCATIONAL TRAINING 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 Products and Services Products and Services Category Courses Key People Category 1 Product 1, Product 2 Name N Designation D i ti Category 2 Product 1, Product 2Source: VOCATIONAL TRAINING 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  (2011‐10) 2011 2010 2009 2008 Profitability Ratios INR mn Operating Margin 0 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 Cost Ratios 2008 2009 2010 2011 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 VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 13
  14. 14. Private: Domestic Company – Player (3/3) Business Highlights Description  News • Player runs a chain of English language training institutes across India under the name ‘V’  Overview • Presently, it operates as a subsidiary of player • It has ventured into providing corporate training solutions through its division player • It operates over a centres across b cities in India and has empowered over c mn people to speak English Network • It also has presence in the international space in Singapore and Sri Lanka • Player is an established test‐prep institutes, had acquired a majority stake in V for around INR d mn in  M&A Activity Nov 20‐‐ • Player’s clientele includes Asia Motor Works, Toyota Kirloskar, HDFC, ICICI, L&T Finance, National  Insurance Co., Pizza Hut, Nirula s Corner House, Speciality Restaurants, Wrigley India, Border Security  Insurance Co Pizza Hut Nirulas Corner House Speciality Restaurants Wrigley India Border Security Clientele Force, Apollo Hospitals, Lodha Group, Ramky Wavoo Developers, NIIT, Arena Multimedia, AMET  University, Kendriya Vidyalaya Schools, Tech Mahindra, HCL Technologies, FUJITSU Consulting India,  Hapag Lloyd Global Services, GATI, Voltas, ACC, Spencers Daily, Hindustan Uni LeverSource: VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 14
  15. 15. Thank you for the attentionThe Vocational Training Market ‐ India report is part of Netscribes’ Education Industry Series. For more detailed information or customized research requirements please contact:Phone: h +91 33 4064 6215 9 33 06 62E‐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 &  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, Netscribes (India) Disclaimer: This report is published for general information only Although high standards have been used the preparation 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. VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 15