indalytics business in education april 2012
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Business in Education is a monthly report by Indalytics Advisors, which is focused on the supply side of education sector in India. The report is aimed at helping education services providers with the latest activities in the sector.The report covers the trends, as well as the opportunities in the Indian education sector, which were highlighted in media. It is designed for the individuals and organizations, which are in the education business, or are planning to enter it. It is also helpful for various products and services providers to the sector.TRANSCRIPT
Business in Education April 2012
© Indalytics Advisors l www.indalytics.com l [email protected] 1
© 2012, Indalytics Advisors Private Limited | Indalytics.com | [email protected]
INDALYTICS
ADVISORS BUSINESS IN EDUCATION
April 2012
www.indalytics.com
Business in Education April 2012
© Indalytics Advisors l www.indalytics.com l [email protected] 2
About Business in Education
Business in Education is a monthly report, which is focused on the supply side of education sector in India. The
report is aimed at helping education services providers with the latest activities in the sector.
The report covers the trends, as well as the opportunities in the Indian education sector, which were highlighted in
media. It is designed for the individuals and organizations, which are in the education business, or are planning to
enter it. It is also helpful for various products and services providers to the sector.
Keep yourself updated with the latest activities in Indian
Education Sector
We cover latest trends, opportunities, regulations and best
practices in Indian Education sector — to help you gain
competitive edge
Visit Indalytics.com – to order annual
subscription to Business in Education
Business in Education April 2012
© Indalytics Advisors l www.indalytics.com l [email protected] 3
Table of Contents
Activities of Major Players ..................................................................................................................................... 4
Companies using different funding routes to expand ........................................................................................ 4
Increase in international collaborations ............................................................................................................ 5
New products introduced in the market ............................................................................................................ 6
Education companies joining hands with other organizations ........................................................................... 6
Opportunities in the sector .................................................................................................................................... 7
RTE expected to bring radical changes in education sector ................................................................................ 7
AICTE planning new colleges and courses .......................................................................................................... 7
IGNOU to receive grant from Japan ................................................................................................................... 8
Schools and research institutes to switch to virtual dissection .......................................................................... 8
Other Prominent Trends in the Sector ................................................................................................................... 8
Government to increase spending on education ............................................................................................... 8
World Bank to provide credit for RMSA program .............................................................................................. 9
Tripura introducing subject on human rights ..................................................................................................... 9
Companies’ Score Card ........................................................................................................................................ 10
List of Institutions and Organizations ................................................................................................................... 12
Business in Education April 2012
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Activities of Major Players
IT companies expanding in education
sector
All India Council for Technical Education (AICTE) has
partnered with Microsoft Corporation to deploy
Microsoft Live@edu — a cloud-based solution —to
more than 10,000 technical colleges and institutes
throughout India. The application will help students
and faculty members under the AICTE approved
colleges to use Microsoft’s services such as email,
Microsoft Office web applications, instant messaging
and storage.
The cloud deployment will also help in providing
high–quality technical education to students,
through Microsoft’s forthcoming offering —
Microsoft Office 365 for education. The offering will
have solutions, such as Microsoft Office Professional,
Microsoft Exchange Online email and calendar,
Microsoft SharePoint Online, and Microsoft Lync
Online — to help students in their studies.
Microsoft India is also starting a project with the
state government of Bihar, to augment digital
literacy in the state. The pilot project — named
'Window to the World' — will start in April 2012, and
will help in increasing computer–aided learning
among the teachers and students in state–run
schools. The project will also help in setting up
platform for connecting Bihar schools with students
and teachers across the world. The pilot will start
with five government secondary schools.
HCL Technologies will also be working with the state
government of Uttar Pradesh to fund IT education in
120 primary schools on a public–private–partnership
(PPP) model. The project, which is a part of
government’s program of providing free laptops and
tablets to the students, is expected to eradicate
illiteracy in Utter Pradesh within 10 years. HCL is also
working with the government on proposed IT parks
in Agra and Lucknow.
Companies using different funding
routes to expand
Azim Premji Foundation, the endowment created
by Wipro Limited Chairman Azim Premji, is planning
to sell 35 million shares of Wipro — worth
approximately INR1,530 crore — to fund its
expansion. The amount will be used to setup an 85-
acre campus in Karnataka, to increase the teaching
and research work of Azim Premji University —
which is in its second year of operations.
The foundation was gifted 213 million shares (8.66%
of total outstanding shares) of Wipro Limited in
2010, of with it will be selling 16% share of 35 million
shares. The new campus will help the university to
increase its batch size to 2,000 students by the fifth
year of operation, from the current size of 100
students.
Business in Education April 2012
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Coaching provider MT Educare — popularly known
as Mahesh Tutorials — has witnessed its initial public
offering (IPO) oversubscribed 4.8 times and surging
12.94% on the day of listing. The company had come
up with INR99 crore IPO. The issue consisted of fresh
issue of INR35 crore and an offer for sale by Helix
Investments of up to 80 lakh equity shares.
MT Educare will be using the amount to establish
new coaching centers at 20 locations, and finance
the land acquisition and construction of a pre-
university college campus in Mangalore, Karnataka.
Helix initially owned 28.6% stake in MT Educare,
which it had acquired for INR32.8 crore in 2007. It is
estimated to have made 2.5x returns in the part-exit.
Hyderabad based education services company,
Edutor Technologies (India) Private Limited has
received a seed funding of INR2 crore from
Hyderabad Angels. Edutor develops interactive
learning platforms for K-12 students. The company
has a proprietary touchscreen device, which comes
pre–loaded with educational content. The content
can be upgraded with the promotion of students to
higher classes.
Edutor will use the funding for product development
and marketing. The company is currently selling the
product in Hyderabad and adjoining areas through
tie–up with schools. Its revenue model is
subscription based, where the students have to buy
annual subscription to the content.
Increase in international collaborations
Chennai based Rajalakshmi Education Private
Limited has signed a Memorandum of
Understanding (MoU) with University of Worcester,
UK to provide Indian students international
bachelors degree in Game Design and Development,
as well as a masters degree in international business.
Noida based Shiv Nadar University is collaborating
with Massachusetts, US based Babson College to
offer three programs on entrepreneurship. The
programs include a four-year undergraduate
program in business administration (BBA), a two–
year MBA program and a one–year MS program.
Babson College will help Shiv Nadar University with
curriculum design, faculty training, and student
selection. It will also help the university with student
exchange programs, where the BBA and MBA
students will have an option to study one of the
semesters, and the MS students to spend one of the
semesters at Babson College campus.
The course fee will be in the range of INR 11.5 lakh
— INR15.75 lakh. The university will also provide
financial assistance to students to start their
ventures.
The Indian School of Business (ISB) has signed a
memorandum of understanding (MoU) with
Karachi's Institute of Business Administration (IBA)
to provide executive education in Pakistan. Under
the MoU, ISB’s Centre for Executive Education (CEE)
will design and deliver programs, focusing on
emerging markets — which IBA will market to its
senior management executives. ISB is planning to
Business in Education April 2012
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offer 10 programs this year, with the first program
scheduled to commence in June.
New products introduced in the market
Bharti Airtel’s DTH service, Airtel Digital TV, has
launched a competitive exam service —iExam. The
service helps students in preparing for their
competitive exams, by accessing mock and practice
tests on their TV. iExam will provide students with a
real time experience in taking practice tests and
competing with other students. It further provides
them with personalized scores and profiles, along
with explanations to answers.
iExam currently provides mock tests for AIEEE, IIT–
JEE and other state level engineering entrance
exams, with content being provided by Career Point,
a Kota based IIT–JEE coaching provider. The service
will further be expanded to include examination
content for PMT, CAT, and Bank PO in the portfolio.
The application is developed by IIM Bangalore
incubated Brizz TV.
Pearson Education Services will now be providing
certification to teachers. The company has launched
a dual–level teacher certification program — to
certify the proficiency of teachers in using
technology in their classroom sessions.
Under the program, the teachers will first have to
undergo training on basic usage of technology. Upon
completion of training, they can take the Level 1
Assessment. After using technology in education for
more than a year, teachers will be eligible to take
the Level 2 Assessment, which will check their ability
to explore new technology solutions in education.
They will be awarded the Advanced Level Certificate
after completion of both the assessments. Pearson is
planning to certify more than 5,000 teachers by the
end of this financial year.
UK based Warwick Business School is planning to
open its campus in India, most probably in Delhi. The
school has hired a consultancy firm to conduct a
feasibility study to ascertain location, costs and
other factors. The school plans to run a full–fledged
campus in India, and will focus on research.
Warwick is in league of many other business schools,
which are entering India. On a similar note, Canada’s
Schulich School of Business of York University is
building its campus in Hyderabad.
Education companies joining hands
with other organizations
CL Educate Limited has signed a MoU with the
North Eastern Council (NEC) to provide MBA
entrance preparation in the North Eastern states of
India. Under the MoU, CL Educate will provide
coaching for MBA entrance exam to approximately
200 students in Arunachal Pradesh, Nagaland,
Mizoram, Sikkim and Agartala. The company is
already running its coaching centers in these areas.
The coaching, which will start from April 2012, will
be free of cost, and will provided for seven hours
daily for six days a week, for a period of six months.
CL Educate will choose the candidates on merit
basis.
Business in Education April 2012
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Technology solutions provider Mexus Education,
will be collaborating with St. Xavier's group of
Schools in Uttar Pradesh to implement digital
learning in the schools. As per the partnership, all
the 45 schools of St. Xavier's will use Mexus
Education’s complete school solutions package —
including the Iken Library; Iken Evaluate; Iken English
Lab; and Iken Learning Labs. The partnership will
help the schools teach their students with the help
of interesting animations, videos, real-life concept
applications.
Opportunities in the sector
RTE expected to bring radical changes
in education sector
One of the major news for education sector was the
Supreme Court’s ruling in Right of Children to Free
and Compulsory Education Act (RTE), 2009. The
court has upheld the constitutional validity of the
RTE act, and has directed all schools — including
privately–run schools — to admit at least 25%
students from socially and economically backward
families, starting academic year 2012–13.
These students will be provided free education in
the private schools from classes I–VIII, against which
the schools will get subsidy from the government.
65% of the subsidy will come from the central and
35% from state governments, and will be based on
government’s expenditure in educating same
number of students in Kendriya Vidyalayas.
After the RTE, the National Council of Teacher
Education (NCTE) is also taking adequate steps to
reform and revamp teaching education system in the
country. NCTE is planning to revise almost all of the
teacher training courses such as BEd, BPEd, MEd,
and MPEd, and NTT, to make them in sync with the
NCERT curriculum framework. Besides the training
courses, NCTE will also work in the areas of distance
education and information communication
technologies (ICT) in teacher education, and will
bring new accreditation and innovative programs in
teacher education.
AICTE planning new colleges and
courses
AICTE is planning to introduce new flexible, dual
degree and integrated courses in management.
Starting from academic year 2012–13, the students
will be able to join the undergraduate courses, after
completing class XII. Once through with the three
year undergraduate course, they can then study for
another year, get applied management credit and
join the industry. After their stint with the industry,
students can rejoin the course — study for another
year — and obtain a masters degree in applied
management. The five–year course will have a
common entrance test at first year.
AICTE has also released a list of 102 new colleges.
Out of the total 669 proposals for new colleges, the
selected 102 ones will provide 2.5 lakh new seats for
professional courses. AICTE already looks after 3,393
engineering colleges and 4,000 management
institutes — which have capacity to accommodate
14.9 lakh and 3.5 lakh students respectively.
Business in Education April 2012
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IGNOU to receive grant from Japan
Indira Gandhi National Open University (IGNOU)
has received INR47crore (US$9.5 million) grant from
the Government of Japan. The grant has come in
form of Japanese government procuring and
providing a range of equipments to augment the ICT
infrastructure of IGNOU's Electronic Media
Production Centre. IGNOU has already received the
equipment, while its installation and operational
training is yet to be completed.
This is the third grant-in-aid from Japan and will be
used in digitalization and program production of
IGNOU. The university has earlier received Japanese
grant-in-aid in 1988 and 1993 for improvement of
educational facilities.
Schools and research institutes to
switch to virtual dissection
The ministry of environment and forests (MoEF),
Government of India, has recently issued a ban on
use of live animals in educational and research
institutions. The guidelines have opened up new
opportunities for educational application providers,
to replace live experiments with simulation based
applications.
The ministry has issued guidelines to the Ministry of
health and family welfare, University Grants
Commission, Medical Council of India, and Pharmacy
Council of India to stop dissection and experiments
with live animals — and replace them with digital
alternatives.
The guidelines — which will not be applicable on
scientists conducting new molecular research — will
impact research institutes, hospitals, laboratories
and other educational institutions. These guidelines
have been framed based on the duties of the
Committee for the Purpose of Control and
Supervision of Experiments and Animals (CPCSEA),
under Section 15 of the Prevention of Cruelty to
Animals Act (1960).
The ministry has asked the educational and research
institutions to replace animals with digital
alternatives. Products such as CDs, videos or other
computer applications — which can teach the
anatomy without hurting the animals, will now be
used by educational and research institutions.
Other Prominent Trends in the
Sector
Government to increase spending on
education
The government has increased proposed spending
in education sector in Union Budget 2012–13. The
spending has been increased by 18%, from
INR52,057 crore in 2011–12 to proposed INR61,427
crore in 2012–13. Approximately 75% (INR45,969
crore) of the total spending will go to school
education and literacy, while the remaining 25%
(INR15,478 crore) will be allocated to higher
education.
Business in Education April 2012
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Check out our following reports on various subsectors of Indian education:
Few of the major projects on which government will
focus more are the Right To Education (RTE) Act
under the Sarva Shiksha Abhiyan, where the
allocations are increased by 21.7% to reach
INR25,555 crore; mid–day meals program, which has
witnessed increase of 15%, reaching INR11,937
crore; and Rashtriya Madhyamik Shiksha Abhiyan
(RMSA) program for secondary education, which has
seen an increase of 29%, reaching INR3,124 crore.
Government is also planning to build 6,000 new
schools under the XII 5–year plan, and is expected to
go for Public Private Partnership for 2,500 of them.
World Bank to provide credit for RMSA
program
World Bank has approved a US$500 million
(INR2,500 crore) credit to support its secondary
education project in India. The organization will use
its concessionary lending arm — International
Development Association (IDA) — to provide the
credit for making quality secondary education
accessible to Indians. IDA provides interest-free
loans with 25 years to maturity and a grace period of
five years.
The credit will be provided to the Rashtriya
Madhyamik Shiksha Abhiyan (RMSA) program — a
flagship program by government of India for
improving quality and accessibility of secondary
education. Under the RMSA program, the
government has plans to expand and renovate
approximately 60,000 government run secondary
schools; upgrade 44,000 upper primary schools; and
build 11,000 new secondary and senior secondary
schools in underserved areas.
Tripura introducing subject on human
rights
Tripura has become the first state in the country to
introduce human rights as one of the subjects in
school curricula. The state government has
introduced the subject — titled 'human rights in
social and political life' — as a part of social
education subjects for class VI — VIII students.
The subject will be taught in schools in three phases,
and help in making students aware of their
constitutional and legal rights. The government has
been distributing a book on Human Rights education
in approximately 50 schools since 2006, and will now
take help of the State Council of Educational
Research and Training (SCERT) to publish new
textbooks for the course.
Check out our following reports on various subsectors of Indian Education
Preschool Education – Market Entry Strategy and Feasibility Report
Game Based Learning in India – Potential Market Size And Feasibility Report
Market Size and Feasibility of Online Tuition in India — Research Report
Potential Market Size of Mobile Education in India – Research report
Visit www.indalytics.com
Business in Education April 2012
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Companies’ Score Card
Operating
Margin
Q3-2012
(%)
Net Margin
Q3-2012
(%)
Debt-
Equity
Ratio
Q3-2012
(%)
EPS
Q3-2012
(INR)
Price-
Equity
Ratio
April 16,
2012
Market
Price
change
March 15–
April 16
2012 (%)
Computer
Software
Training Aptech Ltd. 15.4% 17.9% 0.0% 0.88 99.06 (16.8)%
Computer
Software
Training BITS Ltd. (56.7)% 14.2% 0.5% 0.00 N.A. 0%
Computer
Software
Training NIIT Ltd. 1.3% 36.4% 60.0% 3.38 14.16 (1.3)%
ERP for
Educational
Institutions
Software
Technology
Group
International
Ltd. N.A. N.A. 112.7% N.A. N.A. (1.3)%
ICT
Solutions
Birla Shloka
Edutech Ltd. 4.0% 1.9% 15.8% 0.56 15.04 (16.0)%
ICT
Solutions
Compucom
Software Ltd. 54.3% 11.8% 33.3% 0.26 45.73 (5.9)%
ICT
Solutions
CORE
Education
and
Technologies
Ltd. 39.8% 18.9% 82.9% 4.35 65.48 1.7%
ICT
Solutions
Edserv
Softsyst Ltd. 12.9% 4.2% 3.4% 0.41 60.73 (32.5)%
ICT
Solutions
Educomp
Solutions Ltd. 32.3% 15.4% 55.7% 4.27 45.34 (6.2)%
Business in Education April 2012
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Operating
Margin
Q3-2012
(%)
Net Margin
Q3-2012
(%)
Debt-
Equity
Ratio
Q3-2012
(%)
EPS
Q3-2012
(INR)
Price-
Equity
Ratio
April 16,
2012
Market
Price
change
March 15–
April 16
2012 (%)
ICT
Solutions
Everonn
Education
Ltd. 23.3% (7.4)% 47.0% (3.00) 0.00 (13.2)%
IT Education
Comp-U-
Learn Tech
India Ltd. 14.3% 2.7% 2.8% 0.05 239.20 (31.1)%
IT Education
Jetking
Infotrain Ltd. 17.0% 7.3% 12.9% 0.98 57.76 (9.3)%
School
Education
Tree House
Education &
Accessories
Ltd. 51.7% 27.0% 26.3% 1.82 111.32 (5.7)%
School
Education Zee Learn Ltd. (88.0)% (100.1)% 44.5% (0.48) 0.00 (14.5)%
Tuitions
Career Point
Infosystems
Ltd. 41.4% 40.8% 0.0% 6.32 31.48 (6.9)%
Business in Education April 2012
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List of Institutions and Organizations
AcrossWorld Education
Aptech Ltd.
Axis Bank
Bharti Airtel Ltd.
Birla Institute of Technology, Mesra
Birla Shloka Edutech Ltd.
BITS Ltd.
Career Point Infosystems Ltd.
Compucom Software Ltd.
Comp-U-Learn Tech India Ltd.
CORE Education and Technologies Ltd.
EdServ Softsyst Ltd.
Educomp Solutions Ltd.
Everonn Education Ltd.
Go–Tech
Intel Corporation
Jetking Infotrain Ltd.
Kaziranga University
Manipal Global Education Services
Microsoft Corporation
NIIT Ltd.
Securities and exchange board of India
Signal Hill Capital Advisory India Private Ltd.
Signal Hill Capital Group LLC
Software Technology Group International Ltd.
Tree House Education & Accessories Ltd.
University of Plymouth
University of South California
USC Rossier School of Education
Zee Learn Ltd.
Business in Education April 2012
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Our readership spans across directors and trustees of educational institutions, to CEO/directors of companies that
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Publication Volume: 12-004
Publication Date – April 2012
© 2012 Indalytics Advisors Private Limited
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