The vocational training market in India is poised for significant growth, projected to increase from INR A billion to INR B billion by 20-- due to strong government initiatives aimed at preparing C million skilled workers by 20--. Key drivers include a high demand for skilled workers but challenges such as low vocational training penetration and quality remain. The government encourages public-private partnerships and online vocational courses to bridge the gap in skilled labor and meet future job creation needs.

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Vocational Training Market –
Vocational Training Market India
April 2012

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 Bodies
Government  Government Initiatives
Government Initiatives
Participation  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 Players
Co pet t o
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 2

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. 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 market
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 4

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 2015e
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 5

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. 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 capacity
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 7

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. 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 2
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 9

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 Turnover
Source: Improved Decline
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 10

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.com
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 11

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 2
Source:
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 12

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 Turnover
Source: Improved Decline
VOCATIONAL TRAINING MARKET IN INDIA 2012.PPT 13

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 Nirula's 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 Lever
Source:
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