This analysis gives an overview of the Indian Higher Education industry with a SWOT analysis and a business model. In Indian context, Higher Education is a sunshine though very regulated sector. It's business model differs to a large degree from the same of other baseness. This brief analysis provides a first hand understanding of the sector

1. Industry Insight of
Indian Higher Education Sector
Rajesh Maji

2. Contents
 Opportunities in the Indian Higher Education Sector
 Growth Trend of Different Types of Institutions
 Regulations
 Current Investment Models
 SWOT Analysis
 Business Model

3. Opportunities in Indian Higher Education Sector
 No. of Universities from 20 in 1950 to 677 in 2014 and 864 in 2018. No. of colleges from 500 in
1950 to 37,204 in 2013 to 42,000 in 2018 *
 University and colleges together have 37 Million students. There is an ambitious target of the
Government to raise the current GER to 30% by 2020 that will add another 3 million students
to Indian higher education sector by 2020 *
 Higher education sector in India is expected to increase to US$ 35.03 billion by 2025 from US$
15 billion in 2016 **
 Total market size for e-Learning is expected to rise to US$ 5.7 billion by 2020 from current US$
2 billion. Users of online education in India are expected to reach 9.6 million by 2021 from 1.6
million in 2016 **
 Continued support from the Government to liberalise the sector and much importance has
been given to PPP model of investment and foreign participation
 Inclusion of universities in Atal Innovation Mission (AIM) and boosting universities’ participation
in entrepreneurship development
Source: *MHRD, **IBEF

4. Growth Trend of Diff. Types of HE Institutions
Type of Institutes Growth
E-learning and MOOCs Rapid Growth
Education Service Provider Rapid Growth
Private College Rapid Growth
Private University Rapid Growth
Private Vocational Institute Moderate Growth
Medical Colleges Moderate Growth
Distance Learning Moderate Growth
Govt. Vocational Institute Slow Growth
Deemed University Slow Growth
Government Colleges Slow Growth
Govt. University Slow Growth
Foreign HE Institutions Limited/waiting
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5. Regulations in the Higher Education Sector
Higher Education
Regulated
Formal Education
Composition: University,
Deemed University, Colleges,
Polytechnics
Regulators: MHRD,
State Government,
UGC
Key Players: IITs, IIMs,
Private Varsities, Amity etc.
Technical &
Professional
Education
Composition: Engineering,
Management, Law, Pharmacy,
Architecture, Hotel Management
Colleges etc.
Regulators: AICTE,
Bar Council, Medical
Council, ICAI etc.
Key Players: MDI Gurgaon, K J
Somaiya College of Engineering
Skill Development
Composition: ITIs
Regulators: DGET
Key Players: ITIs
Unregulated
Vocational Training
Composition: Finishing Schools,
IT training school, Language
Training Schools etc.
Skill Development
Composition: Private Skill
Development Centres

6. Current Investment Models
There is an ardent need of private sector involvement in Indian higher education. As a nature of
business, the setup of formal higher education is considered under not for profit Societies Act or Section
8 company of Companies Act 2013. That means, the profits are to be re-invested back to the further
development of the institute. The major challenges for the private sector to involve in Indian higher
education are i> huge capital investment and ii> restriction to get return on investment. So, venturing
into higher education sector is considered more charity than business. The financial viability for long
term operation has to be justified before venturing into it. The following are some of the suggested PPP
models of investment* in the Indian higher education sector.
 Model I: Basic infrastructure model. The private sector invests in infrastructure while the
government retains the responsibility for operations and management of the institutions and makes
annualised payments to the private investors.
 Model II: Outsourcing model. The private sector invests in the infrastructure and also has the
responsibility of operations and management of the institutions, while the government pays the
private investors for the specified services.
 Model III: Equity or hybrid model Investments in infrastructure are shared between the government
and the private sector, while operations and management are with the private sector.
 Model IV: Reserve outsourcing model Government invests in infrastructure and the private sector
takes the responsibility of operations and management.
Source: *UGC Report on “Inclusive and Qualitative expansion of Higher Education”

7. SWOT Analysis of Private Universities in Indian Higher Education
Strength
• The credibility of private university education led by
philanthropic figures has been accepted by students
• Unprecedented amount of CSR money and contributions from
personal wealth are being poured into the sector
• A number of notable industrialists, academicians, educationists
and scientists are becoming the flag bearers
• The existing business relationships of the parent organizations
are extended to academic collaboration, leading to better
access to knowledge and increasing employability
• Considerable improvement in the standards of contents,
teaching methodology, use of technology and industry
academic interactions
• A number of the universities are being set up by reputed group
of industrialists. So, industry interface and employability of the
students are improved
• Smart and timely decision making
Weakness
• Getting the best teachers is very difficult. Premiere Govt.
institutions are still the first choice for the brightest
• Highly capital intensive venture and access to outside fund is
restricted. No profit withdrawal is possible. So, long term
financial viability is very difficult to be justified
• Infrastructural deficiency, low quality of education and high cost
are deterrence to attract good students
• Highly centralised decision making and less involvement of
students in decision making process
• Skills and employability are still major concern for most of the
private universities
• Many universities have been set keeping focus on engineering
education at UG level. Less focus on mainstream research and PG
level studies
• Limited support from alumni
Opportunity
• High demand for quality education in India. Higher disposable
income of Indian middle class and access to bank finance for
higher education. Students are ready to pay premium for good
quality education
• With the target to increase GER to 30%, a large student pool is
awaiting to receive higher education in next 5 years with
investment of approx. US$ 200 billion
• The ‘Study in India’ program of Indian Govt. is making India an
affordable destination for education for international students
• PPP model in higher education makes private participation more
meaningful
• Increasing public support in terms of joint research, skill
development, curricula development and entrepreneurship
development
Threat
• Highly complex and uncertain regulatory framework at both
centre and state level
• No chance to make higher education profit making in foreseen
future. So, it will mainly depend on grants, CSR and charity
money
• Limited scope for FDI and no scope for profit repatriation as it is
registered under Societies Act and Section 8 of Companies Act
2013
• Mandatory waiting period and meeting certain criteria to start
distance education and e-Learning – very lucrative option to
recover some of the cost

8. Business Model of a Private University in India
The Business Model of a University has been developed on a Canvas
developed by Strategyzer

9. The Nine Building Blocks of the Model … Cntd
 Customer Segments
 For whom are we creating value? Who are our most important customers?
 Customer Relationships
 What type of relationship does each of our Customer Segments expect us to establish and maintain
with them? Which ones have we established? How are they integrated with the rest of our business
model? How costly are they?
 Value Proposition
 What value do we deliver to the customer? Which one of our customer’s problems are we helping to
solve? What bundles of products and services are we offering to each Customer Segment? Which
customer needs are we satisfying?
 Channels
 Through which Channels do our Customer Segments want to be reached? How are we reaching them
now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient
How are we integrating them with customer routines?

10. The Nine Building Blocks of the Model
 Key Activities
 What Key Activities do our Value Propositions require? Our Distribution Channels? Customer
Relationships? Revenue streams?
 Key Resources
 What Key Resources do our Value Propositions require? Our Distribution Channels? Customer
Relationships? Revenue Streams?
 Key Partners
 Who are our Key Partners? Who are our Key Suppliers? Which Key Resources are we acquiring from
partners? Which Key Activities do partners perform?
 Revenue Streams
 For what value are our customers really willing to pay? For what do they currently pay? How are they
currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to
overall revenues?
 Cost Structure
 What are the most important costs inherent in our business model? Which Key Resources are most
expensive? Which Key Activities are most expensive?

11. Key Partners
Who are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
Key Activities
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Value Proposition
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each
Customer Segment?
Which customer needs are we satisfying?
Customer Relationships
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
Customer Segments
For whom are we creating value?
Who are our most important customers?
 Investors – (Trustees, Government,
Foreign entities, individuals, etc.)
 Government – (Establishing University in
PPPmodel)
 Different dept.s and ministries of
Government – (MHRD, UGC, AICTE,
MCI etc.)
 A number of missions of Govt. – (AIM,
Start up India, Kaushal Vikas, Digital
India etc.)
 Promotional and Branding agency –
(Brand promotion)
 Admission & Marketing Agency –
(Reaching to target students)
 Placement partners – (Companies who
recruit, placement agencies)
 Technology Service Provider –
(providing tech interface, managing IT
assets & providing process automation)
 Test coordinator – (Conducting
admission test)
 Accreditation Agency – (Government,
Private and International)
 Knowledge Partner – (providing support
on instructional designing and content
development)
 Partner Institutes – (joint program,
exchange program and joint research)
 Financial institutions – (Banks, NBFC
etc.)
 Brand Ambassador
 Alumni – (Lifelong brand promotion)
 Publication agencies
 Study centres (Distance learning)
 Campus developer – (Architect, real
estate)
 Different service providers in the
campus – (Security, Health, Dining etc.)
 Vendors – (Supplying different assets,
goods and services)
 Local district administration and police
 Original land owners
 Course development
 Awareness generation (marketing) of
our courses
 Recruit teachers and fellows
 Give admission to the students
 Provide campus living services
 Teaching
 Take assessment of students
 Conduct research
 Conduct different programs eg skill
development, entrepreneurship
development etc.)
 Placing our students
 Help in IPR protection and
commercialization
 Give support to start ups and companies
 Advocacy for the Univ. as well as the
whole industry – promote brand India
 Proper implementation of different
Govt. Programs eg digital India, swachh
Bharat etc.)
 Produce knowledgeable, disciplined and
responsible citizens for the nation who
are passionate to serve our Country i.e.
India
 Providing high quality world class
education together with many life skills
to our students such as sports, ethics,
culture, leadership, entrepreneurship
etc.
 Providing entry into job market for our
students
 Providing entry into globally renowned
Univ. for higher studies for our students
 Giving employment to Teachers &
Fellows
 Professional & Skill development
o Helping partner organizations to
meet skill gap
 Developing IPR
 Developing knowledge centre for the
disposal of the nation
 Patent commercialization
 Startup support – (knowledge and
investment)
 Providing access to market, talent,
knowledge and expertise to our partner
institutions
 Promote India’s long tradition for
knowledge and cultural integration and
its pluralism to the World
 Advisory and guidance for students and
personized campaign inviting applications
for the different programs. Self-service
application, get test date, appear for
test, appear for interview, get selected,
pay fees online, come to University for
registration, enroll for course and start
studying
 Advocacy level support to the
Government and apply for research
grants keeping greater public interest in
mind
 Collaborative relations with other
research institutions, academic partners
and corporate partners. Closed
relationship to develop IPR, Patents,
trade secret etc.
 Students – (the most important
customers and the reason for our
existence)
 Governments – (for research grant
project)
 Research institutions - (for joint
research projects)
 Academic partners – (domestic &
international)
 Industrial Partners – (for sponsored
research project, organizing training
programs, workshops etc., for patent
commercialization, royalty fees etc.)
 Patients for medical school
Channels
Through which Channels do our Customer Segments want to be
reached?How are we reaching them now?How are our Channels
integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
Key Resources
What Key Resources do our Value Propositions require?
Our Distribution Channels?Customer Relationships?
Revenue Streams?
 Course content and knowledge database
 A no. of collaboration platforms such as
centres and departments for acquiring,
developing, reshaping and sharing
knowledge
 A large pool of qualified and committed
teachers and fellows
 A dedicated pool of administrative staff
 Infrastructure and facilities for
conducting teaching and research and
for living support to teachers and
students
 A robust technology platform for
conducting all the University works
 Teaching and research at the University
campus – (On campus)
 Teaching and research at the premises
of our partner institutions and
organization – (Off campus on site)
 Conducting teaching fully over the
internet – (Digital channel, MOOCs)
o Conducting teaching and delivering
course content over postal service,
internet and study centres
(Distance learning)
o Conducting teaching in Social
Media (LinkedIn, Facebook etc.)
 Conducting teaching partly over the
internet and partly on campus – (Hybrid
channel)
 Conducting program in TV, Radio,
magazines and newspaper (Mass media)
Cost Structure
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Revenue Streams
For what value are our customers really willing to pay?
For what do they currently pay?How are they currently paying?How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
 Acquisition cost for land – (Capex)
 Building and construction cost – (Capex)
 Purchase of IT and non IT assets for University works – (Capex)
 Equity investment in startup companies in Incubation Centre – (Capex)
 Operational and maintenance cost to maintain all the assets for the proper working
 Cost to develop course content – (Professional instructional designers and content developer)
 Fees paid to (eg. Royalty) partner institutions and/or organization for transferring knowledge
 Fees if there is any to be paid to all the partners mentioned in ‘Key Partners’ section
 Salary paid to teachers and fellows
 Salary paid to all the administrative staff (Administrative expenses)
 Scholarships, stipends and grants
 Library and database subscriptions including purchase of books, periodicals etc. and taking subscription to other
libraries and global databases
 Marketing expenses including promotion, road shows, advertisements, branding, digital marketing etc.
 Costs to conduct seminars, workshops as well as bringing thought leaders to University premises, visit of special
guests (Such as Heads of the State, Ministers, Celebrities etc.)
 Cost to conduct special events not related to education such as sports, annual festivals etc.
 Academic and non-academic consumables
 Travelling and other guests visit costs
 Fees received from students for academic activities and living in the campus. (From Alumni, it is alumni fees)
 Consultancy fees (fees received to provide consultancy to different industry and academic partners)
o In case of medical school, income comes from the consultation and treatment of patients, selling other
medical services such as pharmaceuticals, pathological services, nursing services etc.
 Income from sponsored research
 Grants from Government, research organization, international institutions
 Royalty fee (for letting other organization or institution to use in-house developed IPR)
 Patent commercialization fee (received as a royalty or fees received to transfer patent ownership)
 Market development fee for partners (eg. giving access to domestic market to foreign partner. Sometimes, fees
can be substituted with knowledge sharing)
 Hosting fee for organizing many events such as workshops, seminars, webinars, conclave, sports event, talent
search event on behalf of partners
 Dividend income from the stake at a startup company (in case of continuing operation) or profit from the sale of
stake at a startup (in the case of selling off)
 Interest income from extending loans to our students, employees, startup companies etc.
 Endowment income (income from the large pool of donations)
 Advertisement income for partners’ promotions at special occasions
 Income from University publications
 Income from renting space to vendors to provide on campus services such as pharmacy, health centre, grocery
shop, restaurants etc.

12. Thank You
In case of any potential engagement, you can reach out to me at
R4RAJESH(at)LIVE(dot)COM