K12 Market in India 2010

March 2010

Executive Summary
Market Entry Route, Cost and Revenues
K12 market valued at USD XX bn in 20--; Expected to grow at a% p.a. to USD YY bn Majority of the market is dominated by the private unaided premium schools b% of the institutes in K12 are privately owned Market entry mechanisms Cost entailed in the development of an institution Profit avenues available to players

Fundamental Drivers

Growing middle class with the ability to afford a private education Demographic advantages Consumers preferring private to public schools Growing opportunity for ICT services in K12 Low gross enrolment ratio (GER) and high dropout rates Low penetration of multimedia content in schools The Right of Children to Free and Compulsory Education Bill Increase in Public Private Partnerships (PPP) Private Schools Adopting Hybrid Teaching Methods Sarva Abhiyan (SSA Shiksha) Mid-day Meal Scheme Major Expenditure on Elementary and Secondary Education Other Initiatives
K12 MARKET IN INDIA 2010.PPT

LE P M A S

Government Initiatives

Education System in India Market Overview Entry Route, Cost and Revenues Fundamental Drivers Government Initiatives Competition Key Developments

K12 MARKET IN INDIA 2010.PPT

Indian education system comprises of formal and informal network of educational institutes
Indian Education System

Formal Education System

Schools (K12)

Higher Education*

Public

Private

Public

LE P M A S
Private

Informal Education System

Pre- Schools

Coaching Classes

Vocational Training

Multimedia in schools and colleges

Books

Under the purview of the Ministry of R L central governing body for K12; C by B1/B2/B3/B4 Institutions in the formal education space D operate P institutes set up under a J

Informal Education system is M regulations A governed by B regulatory body

Source: K12 MARKET IN INDIA 2010.PPT

Education industry in India has been growing steadily with major contributions from K-12 and higher education
Overview
The education industry in India is valued at USD U bn in 20- It is expected to grow at a a% CAGR to USD Y bn by 20- Current public spending on education in India is ~ g% of GDP
Central government accounts for r% of the total expenditure while State government accounts for t%

Total Education Market Size and Growth

USD bn
80 60 40 20

a% V W X

Indias literacy rate stands at q%

Structure K12 Market

K12 Institutions

LE P M A S
0

2008

2009e

2010e

2011e

2012e

Education Industry (USD U bn)

Segment 1 d% Segment 2 Segment 3 b%

Elementary

Secondary

Primary Kindergarden to Grade 5

Source:

Upper Primary c% Grade 6-8 Grade 9-12

K12 MARKET IN INDIA 2010.PPT

K12 market in India has the largest potential among the segments in the education space
Overview K12 Market
The expenditure on K12 market in India is estimated to be USD XX bn in 20-Expected to grow at a% CAGR to reach USD YY bn by 20-Majority of the market is dominated by the private unaided premium schools

Private K12 Market Size and Growth

USD bn
40 30 20 10 0

Segmentation of K12 Institutions

Segment 1 Segment 2 S1

LE P M A S
Type 1 Type 2 Type 3

a% XX

YY

2008

2012e

Market Segmentation of Private Schools

Type of Private Schools Number N1 N2 N3 Average Spend (USD/Annum) AS1 AS2

P K12 Institutions

100% h% g%

S2

Disproportionate enrolment

f%
AS3

Students Enrolled
Source:

q%

r%

s mn

Average number of students stands at I

Market Share

K12 MARKET IN INDIA 2010.PPT

Drivers - Summary
Growing middle class with the ability to afford a private education

Demographic advantages

Consumers preferring private to public schools Drivers` Growing opportunity for ICT services in K12

Low gross enrolment ratio (GER) and high dropout rates

Low penetration of multimedia content in schools

K12 MARKET IN INDIA 2010.PPT

Government Initiatives - Summary

The Right of Children to Free and Compulsory Education Bill Increase in Public Private Partnerships (PPP) Private Schools Adopting Hybrid Teaching Methods Key ` Initiatives Sarva Abhiyan (SSA Shiksha) Mid-day Meal Scheme Major Expenditure on Elementary and Secondary Education Other Initiatives
K12 MARKET IN INDIA 2010.PPT

Major Players in the K12 Market (2/2)

Institute Company 1 Network Schools located in city 1, city 2, city 3, city 4, city 5 and city 6 Network spans across D schools Business Highlights Offers a wide variety of academic courses through a network of schools, colleges and institutions A conglomerate comprising A entities, more than B students and C faculty members Established in 20- Part of the E Operates through a franchisee model
Growth via greenfield projects/ conversion model, wherein companies take over an existing school

Company 2

Plans on investing INR F bn towards developing G schools by 20-Company 3 n schools in India Started its first school in 19- By 20--, company 3 plans on opening schools in West Asia and in other Indian cities Part of Company J Operates through various models - owned, managed and JVs with reality players Plans to have K schools by FY-It allocated about USD L-M mn to ramp up Company N (K12 schools) and is expected to increase to USD O-P mn by 20- -

Company 4

I schools operational

Source:

SAMPLE
K12 MARKET IN INDIA 2010.PPT

Thank you for the attention

The K12 Market in India 2010 report is part of Research on Indias Education Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

Gaurav Kumar
Phone: E-Mail: +91 33 4064 6214 gaurav.kumar@netscribes.com

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