For the complete report, get in touch with us at: info@netscribes.com The kindergarten to grade 12 (K12) market in India accounts for a substantial share of the total education market. This segment is estimated to be worth INR 20 bn and is expected to be growing at 14% per annum. This space has seen large scale public and private participation. The government has undertaken various initiatives towards developing the market. The large prospective student population is fuelling growth in this sector. The report begins with an introduction to the education system in India including the various segments and their regulatory status in the country. The overview section indicates the market size and growth, the distribution of schools across private and public sector, enrollment levels, segmentation of schools and the market share of each segment in the K12 market. The following section includes information regarding the entry route and the regulations governing the establishment of a K12 institution. It covers the various costs entailed during development and the revenue models and estimated profit margins in the market. The market size, growth and return on margins for players providing multimedia content and Information & Communication Technology (ICT) services to the K12 market. The operational model has also been discussed. The fundamental drivers in India has been discussed including a 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 and low penetration of multimedia content in schools. The key initiatives of the government identified include 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 and other initiatives. The competition section highlights the major private players in the K12, ICT and multimedia market including their business focus and expansion plans.

1. K12 Market in India 2010
March 2010

2. Executive Summary
K12 market valued at USD XX bn in 20--; Expected to grow at a% p.a. to USD YY bn
Market Majority of the market is dominated by the private unaided premium schools
b% of the institutes in K12 are privately owned
LE
Entry Route, Market entry mechanisms
Cost and Cost entailed in the development of an institution
Revenues
P
Profit avenues available to players
M
Growing middle class with the ability to afford a private education
Fundamental
Drivers SA
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
Government Sarva Abhiyan (SSA Shiksha)
Initiatives Mid-day Meal Scheme
Major Expenditure on Elementary and Secondary Education
Other Initiatives
K12 MARKET IN INDIA 2010.PPT 2

3. •Education System in India
•Market Overview
•Entry Route, Cost and Revenues
•Fundamental Drivers
•Government Initiatives
•Competition
•Key Developments
K12 MARKET IN INDIA 2010.PPT 3

4. Indian education system comprises of formal and informal
network of educational institutes
Indian Education System
LE
Formal Education System Informal Education System
M
HigherP Coaching Vocational
A
Schools (K12) Pre- Schools
Education* Classes Training
Public Private Public
S Private
Multimedia
in schools
and colleges
Books
• Under the purview of the Ministry of R
• Informal Education system is M regulations
• L central governing body for K12; C by B1/B2/B3/B4
• A governed by B regulatory body
• Institutions in the formal education space D operate P
institutes set up under a J
Source:
K12 MARKET IN INDIA 2010.PPT 4

5. Education industry in India has been growing steadily with
major contributions from K-12 and higher education
Overview Total Education Market Size and Growth
• The education industry in India is valued at USD U bn
in 20-- USD bn
a% Y
• It is expected to grow at a a% CAGR to USD Y bn by 80 X
LE
W
20-- 60 V
U
P
• Current public spending on education in India is ~ g% 40
of GDP
M
Central government accounts for r% of the total 20
A
expenditure while State government accounts for t%
0
• India’s literacy rate stands at q%
Structure – K12 Market
K12 Institutions
S 2008 2009e
Education Industry (USD U bn)
2010e 2011e 2012e
Segment 1
d% Segment 2
Segment 3
Elementary Secondary
b%
Primary Upper Primary
c%
Kindergarden to
Grade 5 Grade 6-8 Grade 9-12
Source:
K12 MARKET IN INDIA 2010.PPT 5

6. K12 market in India has the largest potential among the
segments in the education space
Overview – K12 Market Private K12 Market Size and Growth
•The expenditure on K12 market in India is USD bn
estimated to be USD XX bn in 20-- 40 a% YY
LE
•Expected to grow at a% CAGR to reach USD YY 30
bn by 20-- XX
P
20
•Majority of the market is dominated by the
M
10
private unaided premium schools
A
0
Segment 1
S1
S
Segmentation of K12 Institutions
Type of Private
2008
Market Segmentation of Private Schools
Number
Average Spend
2012e
100%
P K12 Institutions Schools (USD/Annum) h%
Segment 2
Type 1 N1 AS1 g%
Disproportionate
S2 Type 2 N2 AS2
enrolment
f%
Type 3 N3 AS3
Students Average number of students Market
q% r% s mn Share
Enrolled stands at I
Source:
K12 MARKET IN INDIA 2010.PPT 6

7. 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 7

8. 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 8

9. Major Players in the K12 Market (2/2)
Institute Network Business Highlights
Company 1 Schools located in city • Offers a wide variety of academic courses through a network of schools,
1, city 2, city 3, city 4, colleges and institutions
city 5 and city 6 • A conglomerate comprising A entities, more than B students and C faculty
members
Company 2 Network spans across • Established in 20--
D schools • Part of the E
• Operates through a franchisee model
Growth via greenfield projects/ conversion model, wherein companies take over
an existing school
• 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
Company 4 I schools operational • 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- -
Source:
SAMPLE K12 MARKET IN INDIA 2010.PPT 9

10. Thank you for the attention
The K12 Market in India 2010 report is part of Research on India’s Education Industry Series.
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