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Power To Empower

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Power To Empower

  1. 1. July 2011 – December 2011www.powertoempower.in
  2. 2. ContentsPower To Empower – India’s 1st Skill Enterprise Plan CompetitionSkills Landscape - A Huge Business OpportunitySome Success Stories 1
  3. 3. AgendaPower To Empower – India’s 1st Skill Enterprise Plan Competition 2
  4. 4. Power To Empower -> Co-organisers and Partners Co-Organisers Power To Empower Partners Knowledge Partner Process Partner 3
  5. 5. Power To Empower -> Key Objectives Key objectives1 Encourage Young Minds to think of Skills as Sustainable and Scalable Business Opportunities2 Provide budding entrepreneurs with an inclusive and competitive platform for development and support of innovative entrepreneurial models3 Evolve and popularise New Business Models in developing the Skills Eco-system through the Enterprise Plan competition4 Seed Fund and Incubate Innovative, Sustainable and Scaleable skills business models through Financial Assistance Skill development and entrepreneurship have been identified as a driver for economic growth and India has lot of potential to thrive on enterprise creation and encourage leadership in business development. 4
  6. 6. Power To Empower -> Overall Strategy Launch the competition through Select Educational Institutions familiar with entrepreneurship. Preference would be given to proposals aimed at the grassroots level business plans Involve existing partners, institutions to disseminate information through sensitization sessions and undertake first level of screening Provide mentorship through existing networks at various levels in competition to develop robust plans, to be finally evaluated by eminent Panel. Constant review of the process to make it more robust for subsequent years 5
  7. 7. Power To Empower -> Participating Institutions (alphabetically)Business Schools Graduate Colleges Engineering colleges Sector Specific InstitutesFMS Christ College BITS Pilani Indian Agri Research InstituteGoa Institute of Mgmt HR College IIT Bombay Indian Inst of Gems and JwelleryICFAI Jamia Millia Islamia IIT Chennai Institute of Hotel MgmtIIM A St Joseph’s IIT Delhi MICAIIM B SRCC IIT Guwahati NIDIIM C St Stephen’s IIT Kharagpur TISSIIM K St Xavier’s Kumaraguru College of TechnologyIMTISBManipal Inst of MgmtMDINIRMA Institute of MgmtNITIENMIMSSIBMTAPMIWelingkar Institute ofMgmtXavier Inst of MgmtXLRINote: List of colleges is indicative and in no particular order 6
  8. 8. Power To Empower -> 3 Stage Evaluation The 3 Stage Evaluation model Invitation of Executive summaries Initial Screening of Executive Summaries Stage 1 Invitation of Detailed Plans for screened entries with Mentorship support Evaluation and Selection of Detailed E plans Stage 2 Feedback and Assignment of mentors for Selected Plans Final Presentation & Evaluation Stage 3 Selection of winners, Support and Funding of ideas 7
  9. 9. Power To Empower -> Competition Process flow EOIs ►Partner network to do screening ►Approx 10% entries to be selected STAGE 1 ►Screened entries to be asked for detailed E PlanOnline submission and collection of executive (Screening) and assigned mentors summaries MENTORING Screened teams to work with STAGE 2 ►2nd Round Evaluation of E Plans mentors to make (Detailed E Plan ►Top 10 Plans to be selected plans concrete + Mentoring) ►Feedback & Mentors Assignment and implementable COMPLETION STAGE ►Teams to present final E Plans ►Winners to be given Seed Funding and ►Eminent Panel of Judges to select winners STAGE 3 Incubation support (Final Presentation) ►Winners also to be further connected with Mentors and Angel Investors 8
  10. 10. Power To Empower –> Mentors and Evaluators Mentors Evaluators ROUND 2 ROUND 1 •Representatives from Competition Partners MBA with 6-10 years of experience from reputed Business Schools; either working in own venture or corporate ROUND 2 •Select members from NSDC team ROUND 3 •Project Leader / Principal roles from select consulting firms with experience in skilling projects, MBA with 10-15 years of experience - working in a •Successful entrepreneurs, Professional with 8-10 PE / consulting firm/ training organization. years of experience in the education / training space Successful entrepreneurs with good start up experience. ROUND 3 Industry CEOs and policy stalwart 9
  11. 11. Tentative Competition Schedule Stage 3 – Final Stage 2 – Plan and Stage 1 - Executive Summary Presentation and mentorship Evaluation• Submission of entries: • Mentoring of entries qualifying • Mentoring of entries qualifying 15th September 2011 from Stage 1: from Stage 2: 5thOctober–31st October 2011 20th November –• Evaluation: 30th November 2011 15th September-30thSeptember • Submission of Stage 2 entries: 2011 5th October–31st October 2011 • Boot Camp and Presentation to Final Jury:• Announcement of Short listed • Evaluation: 3rd December 2011 Entries: 1stNovember–15thNovember 5th October 2011 2011 • Announcement of Winners: 3rd December 2011 • Announcement of Short listed entries: 20th November 2011 10
  12. 12. Executive Summary – Application FormatABSTRACT (Word limit: 300 words)PROBLEM/OPPORTUNITY (Word limit: 200 words)BUSINESS VALUE PROPOSITION (PRODUCT/SOLUTION) (Word limit: 500 words)IMPACT SUMMARY (Word limit: 500 words)POTENTIAL RETURN/REVENUE MODEL (Word limit: 300 words)ADDITIONAL INFORMATION (Word limit: 200 words) 11
  13. 13. Evaluation Criteria Low to Criteria Score High1 Business Idea 1 10 (Overall concept) Market Opportunity Assessment2 (Market size, competition assessment, customer demand) 1 103 Value Proposition (Uniqueness of the Solution (Product/Service, Benefit/Value) 1 10 Impact4 (Nature and measurability of benefits) 1 10 Sustainability5 (Robustness of the Revenue Model) 1 10 Total Score 12
  14. 14. Power to Empower –> Award Categories CATEGORY 1 – BEST BUSINESS CATEGORY 2 – NEXT PRACTICE PLAN CATEGORY CATEGORY Focus on Robustness and Focus on highly Innovative Ideas Implementation Feasibility of requiring Implementation support Business plan Seed Funding Seed (Cash Awards) Funding + (Cash Awards) Incubation support + OPPORTUNITY TO INTERACT WITH INDUSTRY LEADERS 13
  15. 15. Possible Interventions within Skills Eco-system Trainers; Pedagogy Facilitations: Funding models, Curriculum Technology, etc Interventions Market Assessment Access, and Employment, Self- Certification Employment s Infrastructure Solutions can focus either on direct skilling solutions or on any particular intervention thereby contributing directly/ indirectly to Skill Development 14
  16. 16. Indicative Skill SectorsAutomobile / Auto Components Building hardware and homeElectronics hardware furnishingsTextiles and garments IT or softwareLeather and leather goods ITES-BPOChemicals and pharmaceuticals Tourism, travelGems and Jewellery HospitalityBuilding and construction Transportation/ logistics/ warehousingFood processing and packagingHandlooms and handicrafts Organised retailHealthcare Real estateBanking/ insurance and finance Education/ skill developmentMedia, entertainment, broadcasting Unorganised sectorcontent creation, animation Solutions can focus on any specific sector, cut across multiple sectors, be geared towards Urban and/or Rural Eco-systems 15
  17. 17. Power To Empower –> How to proceed???Log on to www.powertoempower.inRegister your Interest at www.powertoempower.in/registerSubmit your Executive Summary by 15th September 2011Write to us – info@powertoempower.inContact Us – Dipra Mukhopadhyay @ +91 98990 78876; Namita Goel @ +91 81304 48449 16
  18. 18. Team Related FAQsTEAM SIZE – 1-3 per EntryOPEN TO ALL STUDENTS OF PARTICIPATING INSTITUTIONSATLEAST ONE TEAM MEMBER should be CURRENT STUDENT OF PARTICIPATING INSTIUTIONSMULTIPLE ENTRIES PER TEAM ALLOWED 17
  19. 19. AgendaSkills Landscape - A Huge Business Opportunity 18
  20. 20. India has a rich demographic dividend …. India – % distribution of population (1991 - 2021) Age 1991 2001 2011 2021 0-9 25.6 22.2 19.6 15.8 10-19 21.3 22.9 18.7 17.1 20-29 17.3 17.0 19.5 17.0 30-39 13.3 13.9 14.4 15.7 40-49 9.4 10.2 11.6 12.6 50-59 6.3 6.9 8.2 10.1 60-69 4.2 4.3 5.0 6.9 70-79 1.8 2.1 2.4 3.5 80+ 0.8 0.6 0.8 1.3Source: United Nations Government Census 19
  21. 21. …. However plagued by inadequate skilled manpower1 3 High rates of drop outs in the education space Very low enrolments for VET Skilling getting a major policy2 thrust 4 Employability of the skilled a challenge In service training levels very low in IndiaOnly one in four engineering graduates in IndiaIs employable, based on their technical skills, English fluency, teamwork and presentation skills and of the 4 lakh odd engineeringgraduates, who graduate each year, only about 20% is good enough for India Inc. - NASSCOM 20
  22. 22. Estimated skill gap of 240Mn across 21 key sectorsSource: IMacs Study 21
  23. 23. The current landscape in India needs drastic capacity addition to meet future demandCurrent capacity in skill development under various Eight-fold increase in capacity is requiredschemes, 2008-09 to meet aspiration 0.8 Total supply by 2022 MLE 0.5 1.3 65+ @ current capacity 1.8 MHRD Ministry of women & 0.2 Addition to workforce child development 192 @ 12.8 million per year 8x Ministry of agriculture 0.2 Reskilling / upskilling Ministry of rural of 90% of existing 414 0.2 development workforce (460 million) MSME 0.2 Reduction due to 80 ageing/ retirement** Other ministries* 0.3 Other private XX Total demand by 2022 526 training providers Total capacity in skill development 4.3+ Business opportunity of ~ 1 Lakh Cr*** , 20 Bn USD Privately owned ITCs *Includes ministry of housing and urban poverty alleviation, textile, health and family welfare, food processing industries, and others **Assuming that the existing workforce in the age group of 45-59 will not be re-skilled ***Assuming training fee of Rs 2000 per student for the total demand estimatedSource: 11th five year plan; NCEUS report; McKinsey analysis 22 22
  24. 24. Industry is at a nascent stage with very few players of scale Boutique firmsLeaders (e.g. NIIT) Aspirants (e.g. India Can) (e.g. Redwood Edge) • Top players which control • Companies with wanting • Largely individual ~ 50-60 % of market to scale existing dependent operations • Wide geographic reach, • Looking for opportunities healthy range of courses • Current focus on to expand offered, typically across particular sectors industries • Strong connect with industry for placements Huge demand for a brand of credibility and repute in this space 23
  25. 25. IRRs of 25% possible through developing innovative models . . . to make the economics attractive for private Innovative models need to be developed . . . play • Increased revenue Large scale Current large- economically – Employer driven standards and strong accreditation scale model attractive model system differentiating high quality play, ensuring employers participation to pay placement fees Training 50,000/ yr 500,000/ yr – Channelization of fragmented flow of funds from the capacity, # government, multi-lateral agencies, and industry associations Cost, ~8,000 ~4,000 • Reduced costs Rs./student – Shorter duration courses customized to the industry requirements, lowering the overall costs IRR, % ~10% ~25% – Better operations through hub and spoke model and multiple shifts to reduce overall costs Breakeven ~8 years ~3 years – Ready-to-use curriculum and consolidated train-the- period trainer programs, bringing down training overheads – Support from state government, leveraging public Capex ~Rs.250 cr ~Rs.1,000 cr infrastructure to lower capex investment • Reduced taxes NPV ~Rs.-30 cr ~Rs.450 cr – Tax holiday for 3 years to increase profitabilitySource: McKinsey analysis 24 24
  26. 26. There are challenges in this segment but they can be dealtwith Challenges What we have heard “We don’t get jobs even after going through these courses” Student “My wages remained the same even though I was trained” mobilisation “Institutes are mushrooming – how do I know which are the good ones?” “We need to re- train these people, why should we pay them Industry higher” education “There are very few quality institutes today and very few have an idea of what we want” Lack of student loans for vocational courses Inadequate enabling No standardization of curriculum or content environment No certication or accreditation process 25
  27. 27. Largely an unregulated space which allows players to participate on their own terms K-12 segment Higher education segment Vocational education • No Central governing body • Regulated by the University Grants • No single authority forAuthority • Ruled by state boards / ICSE / CBSE / Commission (UGC) under MHRD accreditation International Boards • Multiple councils for specific areas – All India Council for technical education • A school must be affiliated with a – Medical Council of India Board for recognition – Bar Council of India • All formal education institutes must be – Dental council of India run as "not-for-profit" centres either under a society or a trust – ...Regulations • Any reasonable surplus generated must be ploughed back in the same • Accreditation by council recommended • Unregulated space school and can not be distributed though not mandatory if industry • Specific sectors like nursing acceptance reached are regulated – e.g. Indian School of Business is not recognized – However such institutes are niche and not norm • No large school chains since surplus • Required to be run as "not-for-profit" could not be distributed across centres if institute is recognizedKey schoolschallenges / • School chains restricted to privateimplications social initiatives, religious / political • Multiple authorities to be dealt with – • Open space for participation groups process bureaucratic and plagued with – DAV schools (600+), Chinmaya corruption Vidyalaya (75+) • Highly over-subscribed space with innumerable small playersSource: Analyst reports 26
  28. 28. Summary : The Indian context makes a foray into this space very attractive Current Implications for playersIndustry Potential Rs 1 Lakh Cr + • Rapid growth + • Opportunities across all spaces 4.3Mn;Current capacity Need to increase 8x Very unorganised • Need for a brand of credibilityStructure of industry Few large players + • First mover advantageExamples of – • Limited examples of successful business models in India Limited in Indiabusiness models = • Globally models of scale have been seenRegulations Unregulated + • Allows a player to participate on their own termsInvestment climate High focus + • Both government and private equity money chasing this space 27
  29. 29. AgendaSome Success Stories 28
  30. 30. However, space seeing hectic activity Profile of NSDC funded organizationsTraining providersIn theeducationbusiness Technable GOLSIn unrelatedbusinesses Large established Start ups corporates 29
  31. 31. Some interesting business models in the skills space 30
  32. 32. ALL THE BEST !!! 31

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