Indalytics Business In Education April 2012

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



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



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



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.



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



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.



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.



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.



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



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)%



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)%



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.



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Publication Volume: 12-004

Publication Date – April 2012

© 2012 Indalytics Advisors Private Limited

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Indalytics Business In Education April 2012