Us India Education Opportunities
Content
Indian Education Market Opportunities for US Companies
The importance of educated, skilled and employable manpower in India has gained significance in
recent times given its stage of economic development. The Foreign Education Providers Bill, once approved by the Union Cabinet, is expected to open up significant investment opportunities by US companies and institutions in the higher education space in India. With the passage of this bill, foreign education providers will be able to set up independent colleges which will be treated as deemed universities, offering independent degrees without having to seek affiliation from an Indian university or tying up with one in partnership. This in turn will raise the standard of higher education available to greater numbers of Indian students. This follows The Right of Children to Free and Compulsory Education Act enacted by the parliament in August, 2009 which has come into force from April 1, 2010.
Breakdown of Private Education Sector in formal and non-formal Markets
(*Source: Grant Thornton’s Report: Education in India: Securing the demographic Dividend, March 2010)
Opportunities for US Companies in the Indian Education Market More than half of all Indian students studying overseas choose U.S. universities. The attraction of a U.S. education can be attributed to its variety and flexibility as well as grounding in practical and career-focused training. The number of Indian students enrolling at the bachelor’s level, over 12,500, continues to be substantial. These students seek a foundation in both critical thinking and practical application of learning that is characteristic of American undergraduate education. This presents an opportunity to set up local collaboration and investments especially in higher education, vocational training, and multimedia based education.
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
Higher Education Market in India India has one of the largest and oldest systems of higher education. There are 324 universities, of which 131 have affiliated universities. In addition, there are private and accredited universities, institutions created by an act of Parliament, independent institutes and over 16,000 colleges. Together they offer a wide range of degree and diploma programs. But despite such large numbers, demand outstrips supply by a wide margin. There are approximately 9.5 million students enrolled in higher education in India. This number is projected to rise to 11 million over the next three years. Competition is fierce for limited seats in competitive engineering and management programs. Reservation policies and a quota system designed to promote education opportunities for underprivileged groups in India, further limits enrollment opportunities for many Indians. Education Sub-segment Vocational Training Market Size and Growth $1.4 bn; growth of 22% Opportunities Employability in focus as services such as banking, airline, retail grow Career focused - Engineering, Medicine and MBA preferred Core Education Segment with high propensity to spend amongst middle class Career focused - Engineering, Medicine and MBA preferred High adoption in middle/upper middle class in urban areas
Private Professional Colleges
$7 bn; growth of 16%
K-12 Schools
$20 bn; growth of 13%
Test preparation
$1.7 bn; growth of 20%
Child Skill Enhancement *Source: CLSA
$800 mn; growth of 20%
Private Education Market in India According to data from CLSA, the market for Kindergarten to Grade 12 (K-12) segment is US$20bn, private professional colleges at US$7bn and tutoring at US$5bn. These are the largest segments of the total private education market estimated to be worth over US$40bn. Other meaningful and fast-growing areas include vocational training at US$1.4bn, test preparation at US$1.7bn and preschools at US$1bn. India’s 75,000 private schools account for 7% of total institutions, but enroll 40% of the country’s 219 million students – even as some 142 million children are not in the school system.
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
About Us
IMaCS Virtus Global Partners, Inc. is a New York based advisory firm that offers services to North American companies and funds seeking India related growth and investment opportunities. The firm is a joint venture between Virtus Global Partners and ICRA Management Consulting Services Limited, which is a fully-owned subsidiary of ICRA Limited, one of India's leading credit rating agencies. Our mission is to enable our clients to transform their business by adding India as a key part of their global footprint. Our clients benefit from our local presence, strong relationships, knowledge of local business practice, experience, and financial expertise.
Our Professionals
Our team possesses a deep understanding of the business environment, both in the US and India and is well connected with companies, financial institutions, governmental agencies, and private equity firms in both markets. We have an established track record of over 15 years and 1,000 engagements providing advisory services to a diversified client base across energy, manufacturing, infrastructure, and retail. We also work with multilateral and bilateral government agencies, banks and financial institutions, and regulators. We are headquartered in New York with eight offices in India.
Our Services
India Strategy & Roadmap
• Strategy Recommendations • Investment Strategy • Implementation Roadmap • Market Strategy
Partner / Target Search
• Joint Ventures • Outsourcing • Strategic Alliances • Distribution and Licensing Agreements
M&A Advisory
• Target Identification • Price Negotiations • Synergy Valuation • Deal Structuring
Project / Bid Advisory
• Techno-Economic Analysis • Concession Agreements • Financial Modeling • Contract Preparation
Operations Setup and Support
• Location Assessment • Organization Design • Business Structure Setup • Risk Management
Market Assessment
• Demand Assessment • Industry Landscape Analysis • Competition Assessment • Customer Acquisition Strategy
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
Representative Experience
Below is a partial list of our engagements in India for North American and European companies:
• • • • • • • • • • Preparation of India entry strategy for a leading international EPC contractor. Business feasibility and India entry strategy for a leading North American Bank for the mortgage finance business in India Market analysis and Product pricing strategy for launch of commercial vehicles in India by a global OEM. Financial evaluation of vendors for an international automobile company setting up a joint venture in India. Formulating an India entry strategy and business plan for a global monoline insurance company. Market study and Commercial viability assessment for setting up a 150 MW Lignite Based Power Project in India for an international developer of power projects. Formulating an India entry strategy for a leading global bank. Assessment and Due diligence of joint venture partner for an international power project investor Market Assessment of commercial vehicles gearbox and seatbelts in India for a leading international autocomponent manufacturer. Financial assessment and valuation of India based utility companies for an international strategic investor seeking acquisition of stake in a State Owned Public Sector Utility
Representative Global Clients
Offices
New York (HQ) 501 Fifth Avenue, Suite 302 New York, NY 10017 USA Kolkata FMC Fortuna, A-10, FL 3, 234/3A AJC Bose Road Kolkata 700 020 New Delhi Buildingo. 8, 2nd Floor, Twr A DLF Cyber City, Phase-II Gurgaon 122002 Chennai Karumuttu Centre, 5th Floor 634 Anna Salai, Nandanam Chennai 600 035 Mumbai Electric Mansion, FL 4, Appasaheb Marathe Marg, Prabhadevi Mumbai 400 025 Pune 5A, 5th Floor, Range Hills Road, Shivaji Nagar, Pune 411 020 Bangalore Vayudooth Chambers, Fl 2, Trinity Circle 15-16 MG Road, Bangalore 560 001 Hyderabad 301, Concourse Fl 3 No 7-1-58, Ameerpet Hyderabad 500 016
Please visit our website www.ivgpartners.com. For further information, please contact: Anil Kumar in New York at [email protected] or +001-646-807-9290 Ravi Chauksey in Mumbai at [email protected] or +91-9819234478
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
The importance of educated, skilled and employable manpower in India has gained significance in
recent times given its stage of economic development. The Foreign Education Providers Bill, once approved by the Union Cabinet, is expected to open up significant investment opportunities by US companies and institutions in the higher education space in India. With the passage of this bill, foreign education providers will be able to set up independent colleges which will be treated as deemed universities, offering independent degrees without having to seek affiliation from an Indian university or tying up with one in partnership. This in turn will raise the standard of higher education available to greater numbers of Indian students. This follows The Right of Children to Free and Compulsory Education Act enacted by the parliament in August, 2009 which has come into force from April 1, 2010.
Breakdown of Private Education Sector in formal and non-formal Markets
(*Source: Grant Thornton’s Report: Education in India: Securing the demographic Dividend, March 2010)
Opportunities for US Companies in the Indian Education Market More than half of all Indian students studying overseas choose U.S. universities. The attraction of a U.S. education can be attributed to its variety and flexibility as well as grounding in practical and career-focused training. The number of Indian students enrolling at the bachelor’s level, over 12,500, continues to be substantial. These students seek a foundation in both critical thinking and practical application of learning that is characteristic of American undergraduate education. This presents an opportunity to set up local collaboration and investments especially in higher education, vocational training, and multimedia based education.
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
Higher Education Market in India India has one of the largest and oldest systems of higher education. There are 324 universities, of which 131 have affiliated universities. In addition, there are private and accredited universities, institutions created by an act of Parliament, independent institutes and over 16,000 colleges. Together they offer a wide range of degree and diploma programs. But despite such large numbers, demand outstrips supply by a wide margin. There are approximately 9.5 million students enrolled in higher education in India. This number is projected to rise to 11 million over the next three years. Competition is fierce for limited seats in competitive engineering and management programs. Reservation policies and a quota system designed to promote education opportunities for underprivileged groups in India, further limits enrollment opportunities for many Indians. Education Sub-segment Vocational Training Market Size and Growth $1.4 bn; growth of 22% Opportunities Employability in focus as services such as banking, airline, retail grow Career focused - Engineering, Medicine and MBA preferred Core Education Segment with high propensity to spend amongst middle class Career focused - Engineering, Medicine and MBA preferred High adoption in middle/upper middle class in urban areas
Private Professional Colleges
$7 bn; growth of 16%
K-12 Schools
$20 bn; growth of 13%
Test preparation
$1.7 bn; growth of 20%
Child Skill Enhancement *Source: CLSA
$800 mn; growth of 20%
Private Education Market in India According to data from CLSA, the market for Kindergarten to Grade 12 (K-12) segment is US$20bn, private professional colleges at US$7bn and tutoring at US$5bn. These are the largest segments of the total private education market estimated to be worth over US$40bn. Other meaningful and fast-growing areas include vocational training at US$1.4bn, test preparation at US$1.7bn and preschools at US$1bn. India’s 75,000 private schools account for 7% of total institutions, but enroll 40% of the country’s 219 million students – even as some 142 million children are not in the school system.
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
About Us
IMaCS Virtus Global Partners, Inc. is a New York based advisory firm that offers services to North American companies and funds seeking India related growth and investment opportunities. The firm is a joint venture between Virtus Global Partners and ICRA Management Consulting Services Limited, which is a fully-owned subsidiary of ICRA Limited, one of India's leading credit rating agencies. Our mission is to enable our clients to transform their business by adding India as a key part of their global footprint. Our clients benefit from our local presence, strong relationships, knowledge of local business practice, experience, and financial expertise.
Our Professionals
Our team possesses a deep understanding of the business environment, both in the US and India and is well connected with companies, financial institutions, governmental agencies, and private equity firms in both markets. We have an established track record of over 15 years and 1,000 engagements providing advisory services to a diversified client base across energy, manufacturing, infrastructure, and retail. We also work with multilateral and bilateral government agencies, banks and financial institutions, and regulators. We are headquartered in New York with eight offices in India.
Our Services
India Strategy & Roadmap
• Strategy Recommendations • Investment Strategy • Implementation Roadmap • Market Strategy
Partner / Target Search
• Joint Ventures • Outsourcing • Strategic Alliances • Distribution and Licensing Agreements
M&A Advisory
• Target Identification • Price Negotiations • Synergy Valuation • Deal Structuring
Project / Bid Advisory
• Techno-Economic Analysis • Concession Agreements • Financial Modeling • Contract Preparation
Operations Setup and Support
• Location Assessment • Organization Design • Business Structure Setup • Risk Management
Market Assessment
• Demand Assessment • Industry Landscape Analysis • Competition Assessment • Customer Acquisition Strategy
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
Representative Experience
Below is a partial list of our engagements in India for North American and European companies:
• • • • • • • • • • Preparation of India entry strategy for a leading international EPC contractor. Business feasibility and India entry strategy for a leading North American Bank for the mortgage finance business in India Market analysis and Product pricing strategy for launch of commercial vehicles in India by a global OEM. Financial evaluation of vendors for an international automobile company setting up a joint venture in India. Formulating an India entry strategy and business plan for a global monoline insurance company. Market study and Commercial viability assessment for setting up a 150 MW Lignite Based Power Project in India for an international developer of power projects. Formulating an India entry strategy for a leading global bank. Assessment and Due diligence of joint venture partner for an international power project investor Market Assessment of commercial vehicles gearbox and seatbelts in India for a leading international autocomponent manufacturer. Financial assessment and valuation of India based utility companies for an international strategic investor seeking acquisition of stake in a State Owned Public Sector Utility
Representative Global Clients
Offices
New York (HQ) 501 Fifth Avenue, Suite 302 New York, NY 10017 USA Kolkata FMC Fortuna, A-10, FL 3, 234/3A AJC Bose Road Kolkata 700 020 New Delhi Buildingo. 8, 2nd Floor, Twr A DLF Cyber City, Phase-II Gurgaon 122002 Chennai Karumuttu Centre, 5th Floor 634 Anna Salai, Nandanam Chennai 600 035 Mumbai Electric Mansion, FL 4, Appasaheb Marathe Marg, Prabhadevi Mumbai 400 025 Pune 5A, 5th Floor, Range Hills Road, Shivaji Nagar, Pune 411 020 Bangalore Vayudooth Chambers, Fl 2, Trinity Circle 15-16 MG Road, Bangalore 560 001 Hyderabad 301, Concourse Fl 3 No 7-1-58, Ameerpet Hyderabad 500 016
Please visit our website www.ivgpartners.com. For further information, please contact: Anil Kumar in New York at [email protected] or +001-646-807-9290 Ravi Chauksey in Mumbai at [email protected] or +91-9819234478
501 Fifth Avenue, Suite 302, New York, NY 10017; (646) 807-9290
www.ivgpartners.com
