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Vocational Training Market India

April 2015

Executive Summary

Market

SAMPLE

Vocational training market was valued at INR x1 in 2013 and is slated to grow at x2% till 2019
It is likely to take off over the next few years, owing to strong government participation
Government has set a target of preparing 500 mn skilled workers by 2022, and only a meagre 2.5 mn
vocational seats are available in the country

Drivers

Drivers &
Challenges

Trends
Government
Participation

Challenges

Expanding vocational training infrastructure

Increasing private participation in vocational
training
Low penetration of vocational training
High demand for skilled personnel
Inefficiencies in formal education system

Questionable quality of training

Lack of adequate infrastructure

India mulling on Vocational Training Act

Vocational training as a preferred mode of Corporate Social Responsibility (CSR)
Increasing investments in vocational training
Advanced Training Institutes to be set up in India
Government Bodies
Government Initiatives
Associated Bodies
Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview
Drivers and Challenges
Trends
Government Participation
Government Bodies
Government Initiatives
Associated Bodies

Competitive Landscape
Strategic Recommendations
Appendix
VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Macroeconomic Indicators (1/3)

GDP at Factor Cost: Quarterly
INR tn
15
14 d1
c1
13
b1
12 a1

c4
b4
a4

c3
b3
a3

d2
c2
b2
a2

11

Q1

Q2
2010-11

2011-12

2012-13

Q3
2013-14

Q4

Inflation Rate: Monthly

%
2
1

0
-1

-t

-2

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013

4

Education sector in India has experienced some major

changes in recent past

SAMPLE

Education Market in India Overview

Education is one of the largest service sectors in India and is poised to become one of the best across the globe
India has more than x3 mn schools and more than x4 higher education institutes
Education sector received a total amount of foreign direct investments inflow of INR x5 between Apr 2000 and Jan
2015
The Government of India has taken several measures such as opening of IITs and IIMs across new locations as well as
allocated educational grants for research scholars in most government institutions
Additionally, online education is set to change the landscape in a major way with several educational organizations
using it as a prospective option to reach out to students

Market Size and Growth

INR tr
y7

y8
y3

y4

y1

y2

2013

2014

2015e

2016e

y5

y6

0
2017e

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

2018e

2019e
5

Vocational training market in India is poised for strong

growth owing to favourable government support
Vocational Training Market in India Overview

SAMPLE

Vocational training is a significant element in the countrys education landscape

For it to be effectively playing a role in altering the national context, vocational training needs to be redefined in terms
of flexibility, contemporariness, relevance, inclusiveness and creativity
The Indian government is well aware of the need of this initiative and has significantly provided support towards the
mentioned cause
Only about x6 mn vocational training seats are available in the country while x7 mn people are said to enter labor
market every year
It is expected that by 2020, x8% of total international manpower employed will be Indian and so it is considered the
most opportune time to usher in vocational training in the country

Market Size and Growth

INR bn
z7
z8

z1

z2

2013

2014e

z3

z4

z6
z5

0
2015e

2016e

2017e

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

2018e

2019e
6

Drivers & Challenges Summary

Drivers
Expanding vocational training
infrastructure

Challenges

Increasing private participation in

vocational training

Questionable quality of training

Low penetration of vocational training

Lack of adequate infrastructure

High demand for skilled personnel

Inefficiencies in formal education
system

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Trends Summary

Advanced Training Institutes to

be set up in India

India mulling on Vocational

Training Act

Increasing investments in
vocational training

Vocational training as a preferred

mode of Corporate Social
Responsibility (CSR)

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

MHRD has a structure for imparting vocational education at

all levels

SAMPLE

Ministry of Human Resource Development (MHRD)

Overview

Text
Text

Initiatives

Text
Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Various Schemes and Programmes under National

Vocational Training (6/11)
Schemes for Training (6/7)

SAMPLE

Vocational Rehabilitation Centers (VRC)

Text
Text
Text
Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Industry associations impacting vocational training segment

constitutes of p1, p2, p3

SAMPLE

Industry Associations

Association 2

Association 1

Text

Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Association 3

Text

11

Porters Five Forces Analysis

SAMPLE

Threat of New Entrants

Text

Impact
Medium

Impact
Medium

Bargaining Power of Suppliers

Text

Impact
Low

Impact
Medium

Competitive Rivalry

Bargaining Power of Buyers

Text

Text

Impact
High
Threat of Substitutes
Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

12

Competitive Benchmarking (1/5)

Public Trading Comparables (2014)
Aptech Ltd.

SAMPLE

Everonn Education
Ltd.

Jetking Infotrain
Ltd.

NIIT Ltd.

Market Capitalization (INR

mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

13

Competitive Benchmarking (2/5)

SAMPLE

Key Ratios of Top 3 Companies Operational Basis (FY 2013) (1/3)

Operating Margin

Net Margin

m1

m2

0
m3

m4
m5
m6

Player 1

Player 2

Player 3

Player 1 recorded operating margin of n1%, higher than both Player 2 and Player 3 which recorded operating margin of
n2% and n3% respectively
Player 1 recorded a net margin of n4%, while Player 2 and Player 3 recorded a net margin of n5% and n6% respectively

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Public: Player 1 (1/4)

Company Information

SAMPLE
Offices and Centres India

Corporate Address

Tel No.
Website
Year of Incorporation
Ticker Symbol

Mumbai

Stock Exchange

Head Office

Products and Services

Category

Products/Services

Products & Services

S1, s2

Key People
Name

Designation

P1

D1

P2

D2

P3

D3

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Public: Player 1 (2/4)

SAMPLE

Financial Snapshot

Key Ratios

Total Income

Revenue
INR mn

Profit
INR mn

Net Profit/Loss
g2

g4

g1

g3

g8

g6

g7

g5

0
2011

2012

Financial Summary

2013

2014

The company incurred a net profit of INR u1mn in FY 2014 and INR
u2 mn in FY 2013
The company reported total income of INR u3 mn in FY 2014,
registering an increase of u4% over FY 2013
The company earned an operating margin of u5% in FY 2014, an
increase of u6 percentage points over FY 2013

The company reported debt to current ratio of u7 in FY 2014, a

decrease of u8% over FY 2013

Key Financial Performance Indicators

Indicators
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)

Value (dd/mm/yyyy)

Particulars

y-o-y change
(2014-13)

2014

2013

2012

2011

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Decline

16

SAMPLE

Public: Player 1 (3/4)

Key Business Segments
p10

Key Geographic Segments

p11

q7

p12

q8
p3

p2

p5
p6
p7

p8

q5

p9

q6

2011

2012

2013

p4

q1

p1

2014

2011

q2

q3

q4

2012

2013

2014

Business Highlights
Description

Details

Overview

Text
Text
Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Public: Player 1 SWOT Analysis (4/4)

SAMPLE

Text

Text

Text

Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Private: Player 2 (1/5)

Company Information

SAMPLE
Offices and Centres India

Registered Address

Tel No.
Kolkata

Website
Year of Incorporation

Head Office

Products and Services

Category
Services

Products/Services
S1

Key People
Name

Designation

P1

D1

P2

D2

P3

D3

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

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Private: Player 2 Shareholding Pattern (2/5)

SAMPLE

Shareholders of the Company

Name

S1

Ownership Structure
No. of Shares held

s8

s9

N1
s7

S2

N2

S3

N3

S4

N4

S5

N5

Total

s6

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

20

Private: Player 2 (3/5)

SAMPLE

Financial Snapshot

Key Ratios

Total Income

Profit / Loss

INR mn

Particulars

INR mn

y1

y2

y3

y4

y5

y6

y7
y8

y-o-y change
(2013-12)

2013

2012

2011

2010

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
2010

2011

2012

2013

Financial Summary

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Company incurred a net loss of INR x1 mn in FY 2013, as

compared to net loss of INR x2 mn in FY 2012

Liquidity Ratios

It reported total income of INR x3 mn in FY 2013,

registering a decrease of x4% over FY 2012

Leverage Ratios

Earned an operating margin of x5% in FY 2013, a decrease

of x5 percentage points over FY 2012
The company reported a debt to equity ratio of x6 in FY
2013, a decrease of x7% over FY 2012

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

Decline

21

Private: Player 2 (4/5)

Business Highlights
Description

Overview

SAMPLE
News

Text
Text

Financials

Text

Recent Update

Text
Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

22

Private: Player 2 SWOT Analysis (5/5)

SAMPLE

Text

Text

Text

Text

VOCATIONAL TRAINING MARKET IN INDIA 2015.PPT

23

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