Market Research Report : E-Learning Market in India 2012

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E‐Learning Market –
E Learning Market India
February 2012
Executive Summary

                E‐learning market in India is still at a nascent stage and is expected to witness dynamic growth
                It was valued at INR x bn in 20‐‐ and is expected to reach INR y bn in 20‐‐
                It is an emerging education segment and includes multimedia in private schools, ICT in public schools as well 
  Market         as online education
                E‐learning value chain primarily consists of content suppliers, technology providers and end consumers
                Emerging segments such as e‐learning will lead to strong growth opportunities in India’s education market 

               Drivers                                                         Challenges
                    Low education coverage
                  – Low education coverage                                          Accreditation and recognition issues
                                                                                  – Accreditation and recognition issues
  Drivers &       – Rising demand from various segments                           – Expensive mode of education
 Challenges       – Growing PC and internet penetration                           – Lack of awareness and acceptance
                  – Increasing government participation
                  – Convenience factors

                PE/VC investments in e‐learning segment
                Proliferation of e‐learning devices
   Trends       Foreign universities offering online courses
                Focus on digital content for schools

                                                                 Major Players

Competition                 Player 1                                Player 2                               Player 3
                            Player 4                                Player 5                               Player 6

                                         E‐LEARNING MARKET IN INDIA 2012.PPT                                                      2
•Market Overview
•Drivers & Challenges
•Drivers & Challenges
•Strategic Recommendations
•Strategic Recommendations

 Indian education system consists of formal and informal 
                                            Education Sector in India – Introduction

                                                    Indian Education System
                                x%                                                                   y%

                                                                                             Informal Education 
                     Formal Education System

              Schools                         Higher                                             Vocational            Coaching 
               (K12)                         Education                                            Training              Classes

    Public           Private           Public          Private                          E‐Learning             Books

             Scope of the report

                            y                    y                  f g                            (   ),
          Indian education system is dominated by the core sectors of higher education and schools (K12), which account 
                                       for ~z% of the total consumer spends in the market

                                                  E‐LEARNING MARKET IN INDIA 2012.PPT                                              4
 E‐learning and other emerging segments will help the 
 education market in India to grow strongly 
 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                                                        a%
 • 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
 • Emerging segments such as e‐learning will lead to                   0.0
   strong growth opportunities in the education market                          2010     2011e   2012e        2013e   2014e     2015e

 E‐learning Market in India – Overview
 E learning Market in India                                              Market Size and Growth
                                                                         Market Size and Growth
 • E‐learning market in India is still at a nascent stage 
   and is expected to witness dynamic growth over the                    INR bn
   next few years
 • It is an emerging education segment and includes
   It is an emerging education segment and includes                                                      b%
   multimedia in private schools, ICT in public schools as 
   well as online education
 • Increasing internet penetration, low existing 
   coverage and rising demand are expected to develop 
   this market strongly in the near future                               0
                                                                               2010‐11    2011‐12e   2012‐13e     2013‐14e    2014‐15e

                                                  E‐LEARNING MARKET IN INDIA 2012.PPT                                                5
Drivers & Challenges – Summary 

  Drivers                                                           Challenges
  Low education coverage                                            Accreditation and recognition issues

  Rising demand from various segments                               Expensive mode of education

  Growing PC and internet penetration                               Lack of awareness and acceptance

  Increasing government participation

  Convenience factors

                                        E‐LEARNING MARKET IN INDIA 2012.PPT                                6
Trends – Summary

        PE/VC investments in e‐learning 
                   segment                       Proliferation of e‐learning devices

          Focus on digital content for               Foreign universities offering 
                   schools                                 online courses

                              E‐LEARNING MARKET IN INDIA 2012.PPT                      7
 Players in the e‐learning space are increasingly focusing on 
 providing digital content to schools
                                                      Focus on Digital Content for Schools

          E‐learning players are focusing on schools which are moving from traditional black board to digital content 
                                              to enhance effectiveness of teaching

                                 Company 1                                                                 Company 2
          • It has launched M, a digital learning solution for teachers 
                                                                                    K in association with L has launched P to help schools in 
                                                                                  • K in association with L has launched P to help schools in
               d d         f d        h l        h h ll b        l bl
            and students of Indian Schools, which will be available 
                                       rd to 8th and for science and                Madurai adopt digital learning with 3D technology and 
            for students of standard 3
                                                                                    make teaching‐learning sessions more interactive
            English only

                                  Company 3                                                                Company 4

                                                                                  • It is planning to tie up with schools in Tier II and Tier III 
          • It has entered into a partnership with Z to provide high 
                                                                                    cities to provide internet education to schools with basic 
            quality basic skills online courses for children aged 5‐12
                                                                                    computer laboratories and classes till standard VIII

                                  Company 5                                                                Company 6
          • It has launched D, an integrated learning solution for 
                                                                                  • A and B have launched an e‐learning pilot programme, C 
            Indian schools, which includes an effective blend of 
                                                                                    in five government higher primary schools, which will  
            classroom activities and interactive multimedia 
            demonstrations                                                          include digital instruction materials from  D
                                                                                    include digital instruction materials from ‘D'


                                                           E‐LEARNING MARKET IN INDIA 2012.PPT                                                       8
 Public: Domestic Company – Player (1/3)
 Company Information                                                   Offices and Centres – India 
 Corporate Address

 Tel No.
 Fax No.
 Year of Incorporation
 Ticker Symbol
 Ticker Symbol
 Stock Exchange
                                                                                                        Head Office

 Products and Services
 Products and Services

 Category                Products/Services
                                                                       Key People
 Category 1
 Category 1              Product 1, Product 2
                         Product 1 Product 2                           Name
                                                                       N                          Designation
                                                                                                  D i ti

 Category 2              Product 1, Product 2                          B


                                                E‐LEARNING MARKET IN INDIA 2012.PPT                                   9
 Public: Domestic Company – Player (2/3)
  i    i lS     h
 Financial Snapshot                                                                K      i
                                                                                   Key Ratios
                                                                                                                   y‐o‐y change 
                     Total Income          Net Profit/Loss                                  Particulars                          2010   2009   2008     2007
   INR mn                                                           INR mn
                                                                                   Profitability Ratios
                                                                                    Operating Margin
                                                                                    Net Margin
                                                                                    Profit Before Tax Margin
                                                                                    Return on Equity
                                                                                    Return on Capital Employed
    0                                                                   -1000       Return on Working Capital
            2007           2008            2009              2010                   Return on Assets
 Financial Summary                                                                  Return on Fixed Assets
                                                                                   Cost Ratios
 • The company incurred a net loss of INR a mn in FY 20‐‐, as compared              Operating costs (% of Sales)
   to net profit of INR b mn in FY 20‐‐                                             Administration costs (% of 
 • The company reported total income of INR c mn in FY 20‐‐,                          Sales)
                                                                                    Interest costs (% of Sales)
                                                                                    Interest costs (% of Sales)
   registering a decrease of d% over FY 20‐‐
   registering a decrease of d% over FY 20
                                                                                   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
 • The company reported debt to equity ratio of g in FY 20‐‐, an                   Leverage Ratios
   increase of h% over FY 20‐‐                                                      Debt to Equity Ratio
                                                                                    Debt to Capital Ratio
                                                                                    D b     C i lR i
 Key Financial Performance Indicators                                               Interest Coverage Ratio
            Indicators                  Value (Date/Month/Year)                    Efficiency Ratios
  Market Capitalization (INR mn)                                                    Fixed Asset Turnover
  Total Enterprise Value (INR mn)                                                   Asset Turnover
                                                                                    Current Asset Turnover
                                                                                    Working Capital Turnover
  PE Ratio (Absolute)                                                               Capital Employed Turnover
Source:                                                                                                                                 Improved      Decline

                                                              E‐LEARNING MARKET IN INDIA 2012.PPT                                                         10
 Public: Domestic Company – Player (3/3)
 Key Business Segments                                                   Key Geographic Segments
                  Segment 1        Segment 3                                              Country 1      Country 3       Country 5
                  Segment 2        Segment 4                                              Country 2      Country 4

   0%                                                                      0%
          2007        2008         2009           2010                                  2007          2008        2009           2010

 Key Recent Developments

 Description                  News
                              • Player, which was formerly known as D, provides online education services from high school through to 
                                professional education
 Overview                     • It provides A, a teaching and learning aid, skill development courses, preparatory courses for professional 
                                exams, such as CA, CEMA, CWA, and CS, coaching for competitive exams, and also  operates a distance 
                                education portal
                              • It has recently launched B, an education solution to offer online education for students of Ninth to 12th 
 New product launch

 Geographical coverage        • C primarily serves the United States, Singapore, the United Arab Emirates, and India


                                                  E‐LEARNING MARKET IN INDIA 2012.PPT                                                    11
 Private: Domestic Company – Player (1/3)
 Company Information                                               Offices and Centres – India 

 Corporate Address

 Tel No.

 Fax No.


 Year of Incorporation
                                                                                                   Head Office
                                                                                                   Other Offices
 Products and Services
 Products and Services

 Category            Products/Services
                                                                   Key People
 Category 1          Product 1, Product 2
                                                                   Name                           Designation
 Category 2          Product 1, Product 2


                                            E‐LEARNING MARKET IN INDIA 2012.PPT                                    12
 Private: Domestic Company – Player (2/3)
  i    i lS     h
 Financial Snapshot                                                          Key Ratios
                                                                             K      i
                                                                                                             y‐o‐y change 
                   Total Income       Net Profit/Loss                                  Particulars 
                                                                                                                           2010   2009   2008     2007

                                                                             Profitability Ratios
   INR mn                                                  INR mn
                                                                              Operating Margin
                                                                              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                                                            0           Cost Ratios
            2007          2008        2009          2010                      Operating costs (% of Sales)
                                                                              Administration costs (% of 
 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
                                                                                 b        i l    i
                                                                              Debt to Capital Ratio
 • 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

                                                        E‐LEARNING MARKET IN INDIA 2012.PPT                                                         13
 Private: Domestic Company – Player (3/3)
 Key Recent Developments

 Description               News

                           • Player architects designs develops and markets technology‐based solutions and digital content for e‐
                             Player architects, designs, develops, and markets technology‐based solutions and digital content for e‐
                             learning businesses
                           • X sold ~y% stake of its z in b for INR c mn
                           • It provides e‐Learning in K‐12, Higher Education, Publishers,  for corporates and also extends Tests and 
                             Assessment and its e‐Learning services are used by more than 100 organizations and 20 mn end users 
                             A        t d it L         i       i           db        th 100        i ti       d 20      d

                           • M. signed an agreement with Excelsoft to impart on‐line classes on solar PV, solar thermal, energy 
                             efficiency and biofuel/biomass forms alternative energy

 Network                   • N has entered into a Joint Venture with Infinitas Learning to expand its network

                           • P won the Best Performer ‐ Mysore Region' award by the Government of Karnataka and Software 
 Awards and Recognitions
                             Technology Parks of India in 2010


                                               E‐LEARNING MARKET IN INDIA 2012.PPT                                                       14
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                                                       E‐LEARNING MARKET IN INDIA 2012.PPT                                                    15

Description: For the complete report, get in touch with us at : E-learning market in India was valued at INR 18.41 tr in 2010-11 and is expected to grow at a CAGR of 20%. Increasing internet penetration, low existing coverage and rising demand are expected to develop this market strongly in the near future. This sector has attracted large investments and is slated to lead to strong growth opportunities for the education sector. The report begins with an introduction to the education market in India and its various sub-segments. Indian education system largely consists of formal and informal sectors, with the formal sector accounting for the major share. A macro overview of the Indian education system is also included, which throws light on some of the key indicators such as literacy rate in India, demographic split in education, budget allocation for education and five year plan outlay for education. The market overview section gives an insight into the overall education market in India along with the e-learning market, their market size and growth. It is followed by the segmentation in the e-learning market, comprising multimedia in private schools, ICT in public schools and online education, along with their respective shares. The value chain, primarily consisting of content suppliers, technology providers and end consumers, is also included. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market. An analysis of the drivers and challenges explains the factors leading to the growth of the market including low education coverage, rising demand from various segments, growing personal computers and internet penetration, increasing government participation and convenience factors. Strong opportunity exists in the market due to low coverage of education in India. This coupled with the fact that demand from other education segments are rising, will drive the e-learning market. The