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									                                                          Industry of the Month
                                                           “Education in India”

     Vol . I Issue. VI, July 2012


Biz India News                         2

Biz Policy Updates                      3

India: Education Industry               4

Business Idea of the Month             7

StartBizIndia Discussion Platform      8

Upcoming Business Summit               9

Contact us                             10

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    Biz India News                                                                     Headlines
•   Britannia Industries, which has a near dominant control in the Indian biscuits     Britannia plans to go West,
    market, is embarking on a global expansion to shore up its growth story. The       targets Indian diaspora
    company, which logged 19 per cent growth in top line at Rs 5,400 crore,
    derives around Rs 250 crore from global operations and is looking at all
    vectors to expand its presence overseas on 06th June 2012

•   The Intellectual Property Office (IPO) and Imperial College today published        Copyright industry adds an extra
    new estimates of investment in the UK's copyright industries on 8th June,          £3billion to national accounts
    2012. When adopted in the National Accounts this adds more than £3 billion
    to the economy. This is excellent news not just for the UK economy, but also
    because it shows that Government is serious about understanding and
    promoting the creative industries.

•   Sweden-based single brand furniture retailer IKEA’s CEO Mikael Ohlsson             IKEA Applies to Invest Euro 1.5
    met the Union Minister of Commerce, Industry and Textiles Shri Anand               BN in India
    Sharma in St. Petersburg today to confirm that they will be investing in India
    to the tune of Euro 600 Million (approximately Rs. 4200 crores) in the first
    stage and additional estimated FDI of upto Euro 900 Million (approximately
    Rs. 6300 crores) totalling to estimated Euro 1.5 billion (approximately Rs. 10,
    500 crores) for initial establishment of twenty-five retail stores in a wholly
    owned subsidiary on June 23, 2012

•   Infosys has opened a second development centre in Japan as it prepared to          Infosys     opens        second
    have a more evenly distributed geographic spread across the globe on 26th          development centre in Japan
    June 2012. In a statement on Monday, the IT major said its Japanese
    subsidiary is targeting the local manufacturing clients and accordingly, it has
    set up an office in Chibu. “We are aggressively targeting the manufacturing
    sector in Japan where at present we have 40 clients,” said Mr S.D. Shibulal,
    CEO and Managing Director, Infosys.

•   Indian and Australian scientists will jointly undertake 13 new research            India, Australia team up for 13
    projects. Developing new batteries for electric vehicles, recycling of             research projects
    hazardous e-waste, method to manage wastewater discharged from
    ethanol distilleries, new vaccines against tuberculosis, etc will be the focus
    of some of the collaborative work An Australia-India Strategic Research
    Fund has been created for which the Australian Government has
    committed a total Fund of Australian $64 million on 27 June 2012

•   On 29th June, 2012, Spices exports from India rose nine per cent in                Exports do spice industry proud
    volume in 2011-12, at 575,720 tonnes, against 525,750 tonnes in the
    previous financial year. Total export earnings were up 43 per cent at Rs
    9,783 crore compared to Rs 6,841 crore earlier; in dollar terms, up six per
    cent, according to the Spices Board.

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  Biz Policy Updates                                                                   Legal Headlines
• Liberalization of ECB norms for infrastructure sector and power sector
                                                                                       Liberalization of ECB norms for
  On 25 June 2012, Reserve Bank of India (RBI), in consultation with the               infrastructure sector and power
  Government of India has decided to introduce the following measures with
  immediate effect:

  It has been decided to allow Indian companies in manufacturing and
  infrastructure sector and having foreign exchange earnings to avail of
  external commercial borrowing (ECB) for repayment of outstanding Rupee
  loans towards capital expenditure and/or fresh Rupee capital expenditure
  under the approval route. The overall ceiling for such ECBs would be USD
  10 billion.

  The existing limit for investment by Securities and Exchange Board of India
  (SEBI) registered foreign institutional investors (FIIs) in Government
  securities (G-Secs) has been enhanced by a further amount of USD 5
  billion. This would take the overall limit for FII investment in G-Secs from
  USD 15 billion to USD 20 billion. In order to broad base the non-resident
  investor base for G-Secs, it has also been decided to allow long term
  investors like Sovereign Wealth Funds (SWFs), multilateral agencies,
  endowment funds, insurance funds, pension funds and foreign central
  banks to be registered with SEBI, to also invest in G-Secs for the entire
  limit of USD 20 billion. The sub-limit of USD 10 billion (existing USD 5
  billion with residual maturity of 5 years and additional limit of USD 5 billion)
  would have the residual maturity of three years.

  The terms and conditions for the scheme for FII investment in infrastructure
  debt and the scheme for non-resident investment in Infrastructure
  Development Funds (IDFs) have been further rationalised in terms of lock-
  in period and residual maturity.

  Further, Qualified Foreign Investors (QFIs) can now invest in those mutual
  fund (MF) schemes that hold at least 25 per cent of their assets (either in
  debt or in equity or both) in infrastructure sector under the current USD 3
  billion sub-limit for investment in mutual funds related to infrastructure.

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                                                                                   The education sector
 India: Education Industry                                                         of India is mainly
                                                                                   divided into two main
“India, first of all, came to the game with some just natural advantages:
one, English-speaking population; two, real emphasis on education. You             segments:
also had a country that is very instinctively able to globalize, take the best
of the global world and meld it with their own culture.”                                Core Segment-
                          Tom Friedman, Columnist, the New York Times                   Schools &
                                                                                        Higher Education
When you hear of India being called a great country; the first thought that             University
usually comes to the mind is of India being one of the most populated
countries, or India having one of the largest geographical areas in the
World. But there are other things too which contribute to making India one              Non Core Segment-
of the most talked about countries. One such fact is the Indian education               Coaching classes,
system which is one of the largest in the World.                                        Pre schools, and
                                                                                        Vocational Trainings
According to a report “Emerging Opportunities for Private and Foreign
Participants in higher Education” by PWC; the Indian education Industry
is one of the major areas for investment because it is going through a             Controlling Body of Education
metamorphosis, a renovation process. The Annual Report 2010-11 of                  Sector:
MHRD states that India has 544 university level institutions, which
includes 261 state universities, 73 state private universities, 42 central         The Ministry of Human
universities, 130 deemed universities, 33 institutions of national importance      Resources Development
and 5 institutions established under various state legislations. India also        (MHRD)
has 79 centrally funded institutions, which includes 15 Indian Institutes
of Technology, 11 Indian Institutes of Management and 30 National                  Various Boards/ Authorities
Institutes of Technology.                                                          which acts in affiliation;

THE MARKET: At a glance

Education is one among the largest services market in India. Let’s have a           •    All India Council for
look at some of the facts of online education and similar trend in India                 Technical Education
particularly non-core segment of Education Sector.                                       (AICTE)

 Coaching Institutes: This segment will witness a 17% increase by the
    end of 11 5-year plan as compared to the figure of 2008.

 Vocational Training: Owing to the significant improvement this sector             •    Central Board of
    is witnessing in respect of methodology and technology; it is gathering              Secondary Education
    huge investments from the corporate and private equity firms. All this               (CBSE)
    has been possible due to the enhanced demand and supply of online
    and correspondence courses, facilitation by government and quality

 Education through Television: Media, Telecommunication and
    Education players are now providing education through TV by taking              •    State Boards
    digital education Business-to-Customer (B2C) and helping children
    study while watching TV.

 Competitive Exam Service “iExam” is one such step by Bharti Airtel’s
    DTH service.

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                                                                                 Interesting Statistics
India: Education Industry
                                                                                     The Fact - The Figure
 Game based Learning: Games on the lines of NCERT and
   International Baccalaureate curricula covering subjects such as                Number of students :
   Mathematics, English, Science, General Knowledge and;                                       450 million
   Environmental studies are soon picking up. NCR based company                      approximately
   “Digiwise Knowledge” pioneered the concept.
                                                                                  Annual revenue:
 Interactive Learning platform for K12 students: A Hyderabad based                             US$ 50 billion
   Education Service Company “Edutor technologies” is developing a
   proprietary touch-screen device which comes pre-loaded with                    Investment requirement:
   educational content which can be updated with the student’s promotion                        US$ 100 billion
   to a higher class. The product which is being marketed only in                    by 2014
   Hyderabad will soon spread over other parts.
                                                                                  Expected    growth in the
 Online Education: E-learning market in India was valued at Rs. 1841                decade 2011-2021:
   crores in 2010-11 and is expected to increase at a rate of 20%.                            Around 10-15%
   Increasing Internet availability and rising demand are going to take this
   segment to its heights. Large investments have already poured in               Pre-School Segment:
   which makes it clear that there are going to be huge business                                Will reach US$ 1
   opportunities in e-learning segment in the near future.                                                   th
                                                                                     billion by the end of 11 5-
                                                                                     year plan
Education Sector of India operates in a highly regulated framework. The           World Bank for Secondary
regulation starts at the Central level gets decentralized at State level.            Education:
Hence, the regulations differ from one state to another.                                        Credit of US$
                                                                                     500 million to ensure
 K 12 Sector: This fragment is governed by the “School Education Act”               quality education
   of the respective states and CBSE Rules and regulations concerning
   affiliation and rules of any affiliating body.                                 K-12 sector (Kindergarten
                                                                                     to Class 12th):
Who qualifies to be affiliated with CBSE?                                                       Expected    to
o  Non Profit Trusts & Societies registered under Societies Registration             increase by 14% in worth
   Act 1860                                                                          against the corresponding
o  Companies registered under Section 25 of the Companies Act, 1956                  market size of 2008

Income Tax Exemptions are available to Schools and Institutions for
higher education set up trust provided they comply with Section 11 of
                                                                                  Indian    Higher Education
                                                                                     system World rank:
Income Tax Act, 1961. Trust has to ensure that its main activity is the                        3rd largest in the
noble purpose of promoting education and not earning profts.                         world after China and USA
 Professional Institutions: Professional councils like the All India
   Council for Technical Education (AICTE) regulate the professional and          Growth of Higher education
   technical educations in India. Setting up of educational institutions             against last year : 20 %
   requires huge funds after all and your investment might not be
   sufficient. University Grants Commission (UGC) or other schemes of
   Government may seem like the light at the end of a tunnel.

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India: Education Industry
The central government is ever enthusiastic to welcome overseas
investment. It is because, not only the government’s expenditure will reduce
but the development of education sector will take a better shape. As the
foreign participation increases, one can hope for the regulations to mellow
down a bit. The entry of foreign participants is proposed to be covered by
the new “Foreign Education Providers (Regulation for Entry and Operation)
bill which is aimed at:

    1. Regulating the entry and operation of foreign education Providers.
    2. Awarding them the status of “deemed universities”.
    3. Limiting the commercialization of higher studies.                           Companies in online
Many foreign educational institutions are operating in the country offering
                                                                                   education in India
different types of courses and programmes and there is no regulation
presently in place to control and curb the operation of such institutions
with academic credentials which may not even be satisfying in their own

GOVERNMENT: The Facilitator

The role of Central Government is of paramount importance in the
evolution and monitoring of the education policies and programmes. The
following initiatives have been taken by the Government:-

 Right to Education - Sarva Siksha Abhiyan: Rs. 25,555 Crore have
   been allotted for the year 2012-13 which is a 21.7 increase from the
   previous allotment.

 Model Schools: 6,000 schools have been proposed to be set up at b
   lock level in the 12th five year plan.

 Rashtriya Madhyamik Siksha Abhiyan: Rs. 3,124 crore have been
   provided which is a 29% increase over the previous budget allotted              Features     of  online
                                                                                   Platform for Education
 IITs and IIMs: budget allocation for the education sector has been
   increased by almost 17% i.e. Rs. 150 Crore for establishing new Indian
                                                                                     •   24/7 online Learning
   Institutes of Technology and Indian Institutes of Management.
 Excellence in Journalism: Measures have been taken to establish 4                  •   Live Chat
   regional centers of Indian Institute of Mass communication.
                                                                                     •   Mobile learning
 Financing of Deemed and Central Universities: Rs. 6,36,215 Crores
   have been allocated to University Grants Commission (UGC).
 Collaboration with European Union: India and EU have joined hands                  •   Online Tutoring
  to launch a skill development project in India where EU will invest 6
  million euros over a span of four and a half years.                                •   Online Classes
 Strategic Partnership with US: India will set up a higher education
  platform to enhance collaboration in research, skill development and
  student and faculty exchange.

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India: Education Industry
THE BIG PICTURE: What lies ahead?

India is going to focus on vocational education and training to increase its
formally skilled workforce by about 70 million people in the next five years.
Huge changes are expected to occur in the higher education segment in
the coming years. Foreign partnerships will enter the country to bring new
ideas while Indian entities will work on improvising the existing
methodologies of teaching to make India an even better place for

Education is one phenomenon which is ever evolving and Indian
education sector is not behind. It offers huge business opportunities for
those eager to invest. Availability of funds and a noble mindset to promote
quality education can take the investor to places.

                                                                     Source: ibef
                                                                                    The USP of such a venture is
Business IDEA OF THE Month                                                          you   can     adopt        different

                                                                                    +You can connect to the
       E-Tutoring is all about learning online through Internet and                 student virtually on real-time basis
       TV. Talk to any student and he will tell you about the neck-in-
       neck competition that exists at school level. Coaching and
       tuitions seem to be the buzz-words in the education sector
       these days because of the way they supplement the regular
       school education. Not only the e-tutors help a student to cope
       up with the syllabus at the child’s own pace, they even fulfill
       the need of individual attention which is sometimes not
       possible in school. Who knows better than a worried parents

       Another thing which the parents know pretty well is the way
       computer education has gone ahead of times. One can only
       marvel how tech-savvy kids have become these days.
       Getting a child to spend 4 hours with his laptop seems
       easier than getting him to study for that duration! Isn’t it

       A huge business opportunity lies in front of you if you are
       game enough to combine the 2 things we have discussed
       above! Any guess what we are talking about? Yes. An online
       coaching venture! There’s absolutely no better way to attract
       a computer loving student towards studies.

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StartBizIndia Discussion Platform
NRI wants to open a Garment Manufacturing Unit in Free Zone in India.
He wants to manufacture or import the raw materials from outside
India and export the finished goods back. Please advice for suitable
location. What is the minimum investment required to set up the
project? Can he apply for PAN Card in the capacity of NRI?

Free Zone covers SEZ (Special Economic Zone) and EOU (Export
Oriented Unit). Since, you want to manufacture garments in India and
export it to outside India, so, it is recommended to choose setting up of
EOU (Export Oriented Unit). The biggest advantage of setting up EOU is
that the unit can import capital goods, raw materials, consumables,
packing material, spares etc. without payment of customs duty. Similarly,
these can be procured indigenously without payment of excise duty.
Second hand capital goods can also be imported.

The incentives are as follows:-

a. Exemption from customs/excise duties.
b. Income Tax exemption on income derived from the business of
   development of the EOU in a block of 10 years in 15 years under Section
   80-IAB of the Income Tax Act.
c. Exemption from minimum alternate tax under Section 115 JB of the
   Income Tax Act.
d. Exemption from dividend distribution tax under Section 115O of the
   Income Tax Act.
e. Exemption from Central Sales Tax (CST)
f. Exemption from Service Tax

100% FDI investment is permitted through Automatic Route. The suitable
location is Noida, Uttar Pradesh in North India.

Minimum investment in plant and machinery and building is Rs 100 lakhs
(INR) for EOU. This should be before commencement of commercial
production. In case of SEZ, there is no minimum requirement in terms of
investment. The minimum capital requirements of forming a Private Limited
Company are Rs. 1 Lakh (INR). In addition to this, the other costs will
depend upon number of factors such as size of the business, location, land
cost, etc.

As far as applying for PAN card is concerned, NRI can apply for PAN in
India by submitting certain documents to Income Tax Department


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    Upcoming Business Summit                                                        National
   Food & Agri Processors & Exporters Conclave
                                                                                    •   Food & Agri Processors &
                                                                                        Exporters Conclave
    The programme aims to discuss key challenges faced by food agri
    processors and Exporters. Also, the event aims to identify the business
    opportunities for food and agri business in India. There has been a
    session on suggestions in policy changes for facilitation of promotion of
    agro based industry. The focus areas are statutory requirements of
    importing countries, WTO Agreement, Food parks, SEZ and Agri
    processing zones and also inbound and outbound investment
                                                                                    • Entrepreneur 2012 - Investor
    opportunities and special international corridors of focus                         Meet - for Indias hottest
            th                                                                         startups,    VCs      angel
    Date: 25 July, 2012                                                                investors.
    Venue: Hotel Fortune Landmark, Ahmadabad

   Entrepreneur 2012 - Investor Meet - for Indias hottest startups, VCs
    angel investors.

    This programme is especially for startups which have the potential to
    transform India’s landscape, and solve problems with inspired solutions.
    Date: 26 July, 2012
    Venue: Hotel Sofitel Bandra Kurla Complex,

   Scaling Businesses from One Orbit to the Next
    The workshop answers dilemmas surrounding scaling businesses,
    frequently faced by entrepreneurs once they are in revenue stage such
                                                                                    •   Scaling Businesses from
                                                                                        One Orbit to the Next
    •   How do I scale? Will it affect my current pace of my business?
    •   Is it the right time for me to consider funding?
    •   How do I grow my venture from strength to strength?

    Date: 27th July 2012 to 28th July 2012
    Venue: Electronics City 1st Phase Bangalore

   8th Indo-US Economic Summit                                                     •   8th Indo-US Economic
    Emerging Frontiers in the Indo-US Economic Cooperation is all about
    Exchange of views on various sectors of business between India and US,
    including investment opportunities in both the countries. The event shall
    be held

    Date: 12th September to 13th September 2012
    Venue: Hotel Le Meridian, New Delhi

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                                         Contact Us

                   Neha Seth                                            Visit us at


               D: +91.11.40622239

                                                                       A Venture of

                   Shipra Paul                        D- 38, Ist Floor, South Extn. Part I New Delhi –
              E:                                       110049
                                                               T: 40622200 F: 91.40622201
               D: +91.11.40622246


This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper have
been developed for the new startups. The author and the Company expressly disclaim all and any liability to any
person who has read this paper, or otherwise, in respect of anything, and of consequences of anything done, or
omitted to be done by any such person in reliance upon the contents of this paper.

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