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HowIL&FSEducationhascashedinonawarenessaboutcomputereducation,skilling:BusinessToday

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HowIL&FSEducationhascashedinon
awarenessaboutcomputereducation,skilling
SarikaMalhotraJune30,2015

GROUP:SUBSIDIARIES/JVs
SEGMENT:REVENUESRs5001,000CRORE
FastestGrowingEmergingCompaniesRank:2
TheinstituteislocatedintheheartofDelhi'slargestindustrialcluster,Okhla.Fittinglyso,as
itisaninstitutethatimpartsskillssomeoftheveryskillstheindustriessurroundingit
require.Itisoneof45suchinstitutesrunacrossthecountrybyIL&FSSkills,aunitof
financialgroupIL&FS'ssocialinfrastructurearm,IL&FSEducationandTechnology
Services.ItrunstheminconjunctionwiththeNationalSkillDevelopmentCorporation
(NSDC).TheOkhlabuildingwherearound1,000studentshavebeentrainedannually
since2012hasbeenprovidedbyagarmentsexporter,AkritiApparels,andusingitispart
ofIL&FSSkills'businessstrategytoremainassetlight."Wetrytoleverageexisting
infrastructurebypartneringwiththegovernmentorprivatecompanies,"saysR.C.M.Reddy,
CEOandManagingDirector,IL&FSEducation."Webelievethepublicprivatepartnership
(PPP)modelisasrelevantinbuildingsocialinfrastructureasincoreinfrastructure."
IL&FSEducationbeganasSchoolnetin1997,addingtwosubsidiaries,IL&FSSkillsand
IL&FSClusters,in2011and2006,respectively.Itssuccessismainlyduetoitsearly
adoptionofthePPPmodelinthesocialsector,asgovernmentbudgetaryallocationsfor
educationespeciallycomputereducationandskillingbeganrising.Growingprivatesector
awarenessoftheskillinglacunaandwillingnesstoinvestinovercomingitalsohelped.India
EquityPartnerstooka26percentstakeinthecompanyin2010.
{quote}AmajorPPPventurethecompanyhasenteredinto,forinstance,isparticipationin
theMinistryofHumanResourceDevelopment'sInformation,Communicationsand
TechnologyprogrammeforSchools,begunin2010inGujarat.Theserviceproviderhasto
setuplabs,trainteachers,developcontent,etc,forwhichtheministrypaysitanagreed
amountoverfiveyears."Weengagedeverypossiblestakeholderandinnovatedatevery
steptocreateamechanismthatensuressuccessoftheproject,"saysReddy.IL&FS's
successledthegovernmentsofBihar,WestBengal,Odisha,MaharashtraandRajasthanto
alsoseekitsservices.Thecompanynowrunstheprogrammein18,000schools.Overall,it
hasa27percentshareintheedutechsolutionsmarket,whichaccountsfor66percentof
itsrevenue.
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HowIL&FSEducationhascashedinonawarenessaboutcomputereducation,skilling:BusinessToday

IL&FSSkills,withitsskillinginstitutes,bringsin20percentoftherevenue.Itimpartsskillsin
17sectorsvariouskindsofmanufacturing,engineering,construction,services,etc."IL&FS
isoneofourtoppartnerswithapanIndiapresence,"saysDilipChenoy,CEOandMD,
NSDC.Thecompanyalsotrainspeopleonbehalfofcorporatehouses,chargingRs5,000to
Rs20,000pertrainee.Morethan40companieshavetieupswithIL&FSSkillstorunskilling
programmes."Wehavebuiltabrickandmortarnetworkunderwhichwecancreateniche
programmesforcorporatehouses,"saysReddy.Whilecorporatehousespay40percentof
thefee,studentspaytheremainingamount."Ifstudentsareunabletopay,wehavetieups
withagenciesforcollateralfreeloans,"Reddyadds."Orelsetheycanbeincludedaspartof
theCSRinitiativeofthecompany"PlacementisakeyareaofsuccessforIL&FSwithmore
than75percentplacements.Someemployersevenpayaplacementfeepertraineetaken,
whichisusedtooffsetthecoursefeethetraineepaid.IL&FSClusters,whichbringsinthe
remainingrevenue,mainlyprovidesconsultancyforsettingupandrunningindustrial
clusters,withgovernmentsincluding17Africangovernmentscorporatehousesand
internationalagenciesamongitsclients.
IL&FSEducation&TechnologyServicesaimstoskill4millionpeopleby2022."Incoming
years,thethrustoneducationandskilling,byboththegovernmentandcorporatehouses,
canonlyincrease,"saysReddy.
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