E-learning in India

e-Learning - India March 2009

Executive Summary

Market

E-learning market in India is at nascent stage and highly under penetrated with more than x% of the schools still untapped E-learning market comprises of Multimedia in private schools – Digital content and solutions in private schools ICT in government schools – Installation and maintenance of computer labs in government schools Online education – Online certifications/courses and online tutoring

Drivers & Challenges

Trends

Competition

E L P M A S

Drivers: Low penetration in schools, Increase in broadband penetration, government initiatives, increase in demand for online courses Challenges: Long receivable cycle, recognition issue Education sector has seen many PE/VC deals in e-learning segment on the back of growing demand for digital content in schools and online courses in India Government is increasing the computer literacy in public schools through PPP contracts Private schools moving towards hybrid teaching model, involving traditional and digital content, to improve quality of education Online courses and certificating by foreign universities gaining importance in Indian market ABC Ltd is the biggest players computer education in public and private schools, ahead of its peers Other players in e-learning segment include XY Ltd and UV Ltd

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•Market Overview •Drivers & Challenges •Trends •Competition •Key Developments

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E-learning market in India is at nascent stage and highly under penetrated market Overview

E-Learning Market (2008-2012e)

• E-learning market is estimated worth USD XX mn in 2008 with immense growth opportunities • E-learning comprises of – Multimedia in private schools includes digital educational content and infrastructure solutions in schools as teaching aid ICT in public schools involves setting up of computer labs and providing training in computer literacy in government schools Online Education includes online tutoring for K12 and online courses at graduate and post graduate level

USD mn Y

4,000 3,000

E L P M A S

Online education

2,000 1,000

X

0

2008

2012

Multimedia and ICT in Schools USD mn

USD mn

1,500

3,000

B 1,000

2,000

Public Schools

V

Private Schools

500

1,000

U

A 0

0

2008

2012e

2008

2012e

Note: E-learning at corporate level is excluded Source: E-LEARNING – INDIA.PPT

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Drivers and challenges

Drivers

Challenges

Low penetration in schools

Long receivables cycle

Government initiatives

Recognition issues

Increase in broadband penetration Increase in demand for online courses

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Key Trends

Increase in public private partnerships (PPP)

PE/VC firms showing interest in education sector

Trends

Foreign universities offering online courses

Private schools adopting hybrid teaching methods

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ABC Ltd is the leading player in e-learning market Major Players

Government Schools

• E-learning market in India is highly under penetrated with more than x% of the schools still untapped

Company

No. of Schools (FY08)

ABC Ltd

A

XY Ltd

B

UV Ltd

C

E L P M A S

• ABC Ltd is the biggest players computer education in public and private schools, ahead of its peers

• ABC Ltd hold x% market share in the ICT education market while XY Ltd and UV Ltd hold s y% and z% each respectively

Private Schools Company

No. of Schools (FY08)

ABC Ltd

X

XY Ltd

Y

UV Ltd

Z

Untapped Untapped market market provide provide immense immense opportunities opportunities for for the the players players in in the the space space

Source: E-LEARNING – INDIA.PPT

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Company Snapshot – ABC Ltd ABC Ltd • Overview: ABC Ltd, founded in 19--, is an e-learning solutions provider specializing in creation, management and delivery of learning content • Business Model:

E L P M A S

• Corporate: Uses proprietary content for computer aided learning within class rooms under its “AA” product.

Also licenses out content for ASEAN markets. Has its own books in schools managed under the Edu Manage umbrella • Retail: Owns two online portals namely www.ABC.com and www.XYZ.com. ABC.com was developed in-house; XYZ.com was acquired in 20--

• Expansion Plans: By 20--, ABC Ltd plans to have X schools signed up for ‘AA’ product

Revenue Break up (FY08)

Financials INR mn

DD

U

3,000

Revenue

2,000

Adj. Net Profit

X 1,000

z%

CC y%

V

Y

0

w% AA

x% 2007

2008

BB

Source: E-LEARNING – INDIA.PPT

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