PRIVATE UNIVERSITIES IN INDIA An Investment in National Development

Prepared by The Parthenon Group

for the Indian Education Congress 2012for the Indian Education Congress 2012

P h ’ Ed i P iParthenon’s Education Practice

On-the-Ground Education SectorEducation Sector Projects Completedby Parthenon

All >$1B Education CompaniesPrimaryEducation Segment In PrimaryRevenueGenerating P h CliPrimary Education Segment In 

RevenuePrimary Revenue Generating 

Region/ Country Parthenon Client 

Pearson Textbooks US Yes

Cengage Textbooks US Yes

Houghton Mifflin Harcourt Riverdeep Textbooks US Yes

Hachette Textbooks France Yes

G Pl T b k EGroupoPlaneta Textbooks Europe

Santilana Textbooks Europe/Latin America

Laureate Colleges/Universities Latin America Yes

D V C ll /U i i i US YDeVry Colleges/Universities US Yes

Anhanguera Colleges/Universities Brazil

EDMC Colleges/Universities US

C ll / i i i SITT Colleges/Universities US

Kaplan Colleges/Universities US Yes

Apollo/U of Phoenix Distance Higher Ed US Yes

i d /Disney Edutainment/ELT US Yes

ETS Assessment US Yes

Hi h Ed i E l I100%

Higher Education Enrolment vs. Income

80%

100%

o

United States

Ukraine NorwayNew

Lithuania

Greece

Finland

Denmark

Australia

Republic of Korea

Zealand

60%

lmen

t Rat

io

Uruguay

Sweden

Slovakia

Romania

LatviaItaly

Israel

Hungary

France

Estonia

Czech Republic

Belgium

Belarus

Portugal

NetherlandsIreland

Iceland

Lebanon Chile

Poland

Austria

40%

ertia

ry E

nrol SwitzerlandSlovakia

Mexico

Jordan

Hong Kong (China), SARCyprus

Armenia

Algeria

BrazilBahrain

UAETunisia

Turkey

CroatiaBulgaria

Colombia

Chi

20%

Te

BhutanMyanmarLaos Cape Verde

Nepal Brunei DarussalamAzerbaijan

Algeria

El Salvador

Tajikistan

KuwaitOman

Saudi Arabia

Morocco

Vietnam

Indonesia

Guatemala

China

IndiaUzbekistan

R2 = 70%0%

$0 $20,000 $40,000 $60,000

PPP Adjusted GNI per CapitaTanzania

PakistanBangladeshGhanaBurundi

Madagascar

Burkina FasoEthiopia

PPP Adjusted GNI per Capita

Number of Students Enrolled in Hi h Ed i (D & Di l )Higher Education (Degree & Diploma)

40M India

China

30

China allows for-profit education

Annualized Growth Rate2000-2010

20 China: 15%India: 7%

10

0

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

Higher Education Enrolment GrowthR i d b G h S iRequired by Growth Scenarios

$12.5K India GrowthScenario

AnnualIncrementalEnrolment

Annual MinimumCapEx Required

Same growth as

7 5

10.0Same growth as China 2.7M $5B

GDP /Cap of $8k 1.8M $3.5B

5.0

7.5Historic 0.9M $1.8B

2.5

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0

Indian Higher Education Enrolmentsb T f I i i 2008 2011

A li d

by Type of Institution, 2008-2011Annualized

Growth Rate(’08-’11)

~8%15.8M~40%

~2%Public Universities

Private Universities

12.5M

10%C ~10%Private Colleges

2008 2011

Average Payback Period for P i U i i i b C TPrivate Universities by Course Type

30 Months

20 Months

11 Months

18 Months

PrivateU i iti

PrivateColleges

Universities

Bachelor of Engineering Program

MBA Program

Number of Private State Act U i i i i I di b Y f O iUniversities in India by Year of Opening

20 107

232009-

11

18

15

2006-

11

209 2

Pre-2005

Pre-2005

2006-08

Pre-2005

2006 2007 2008 2009 2010 2011 Totalin 2011

2005 2005

Goals of Higher Ed i I i I I diEducation Institutes In India

CREATE PRESERVE DISSEMINATECREATE KNOWLEDGE(Fundamental

Research)

PRESERVEKNOWLEDGE

(AppliedResearch)

DISSEMINATEKNOWLEDGE

(ShareKnowledge)

Private Universities

Public Universities

About The P th

The Parthenon Group is a leading advisory firm focused on strategy consulting, with offices in Boston London Mumbai and San Francisco Parthenon’s Education Practice is the largestParthenon

Group’s Education Practice

Boston, London, Mumbai, and San Francisco. Parthenon s Education Practice is the largest advisory team to focus on the education sector, both for-profit and non-profit/government. Parthenon has 40 professionals focused on advising the MENA and Asian education sectors. The Education Practice is a leading advisor to the global education industry with clients across diverse sectors that include publishing, primary and secondary education, higher education, consumer education, vocational education, corporate training, governments, foundations, NGOs, and other non-profit organizations. Parthenon completes more than 150 education projects per year in over 60 countries globally.

Learn more about our Education practice at www.parthenon.com/industries/education

Karan KhemkaPartner

karank@parthenon.com+ 91-22-67442500 91 22 67442500

For regular updates on events research and reportsFor regular updates on events, research, and reports@Parthenon_Group

Follow Karan for thought-provoking observations and ideas on education@karan_khemka